Travis Perkins results reflect mixed market backdrop1 March 2018
Travis Perkins plc has announced it is to focus capital investment behind its “key priorities” and that it will slow investments elsewhere.
This is in response to the “mixed market backdrop” that the company anticipates will continue in 2018.
The Group saw revenue growth of 3.5% in 2017 (up by £216m), with like-for-like growth of 3.3%, and adjusted operating profit of £380m, following investments made to improve customer propositions.
The focus in the first half of the year was on recovery of significant cost price inflation, maintaining gross margins, but at the expense of volume as some competitors were slower to increase prices.
In the second half of the year, pricing pressure eased and the Group generated like-for-like growth of 3.7%, with the combined merchant businesses delivering like-for-like growth of 4.9%.
“2017 was a challenging year for the Group, with continuing uncertainty in our end markets and declining consumer confidence throughout the year,” said John Carter, chief executive office.
“The main focus for our businesses has been to recover the significant cost price inflation encountered and, on the whole, this has been achieved successfully.”
“The Group will focus heavily on maintaining tight control of the cost base and expects 2018 performance to be similar to 2017,” said John Carter, chief executive officer.