Travis Perkins reports 24% profits rise

29 July, 2010

Travis Perkins has reported a 24% rise in adjusted first-half pre-tax profits to £112m.

Sales were also up 5% to £1.52bn, as trading in the first six months performed ahead of management’s expectations.

“We remain determined to further develop our customer propositions via an exciting programme of organic growth initiatives with the aim of stretching our lead over competitors,” said chief executive Geoff Cooper.

“While we continue to see modest market growth following a severe recession, we view the future with confidence."

Turnover in the merchanting division increased 6%, with overall profits before interest and tax up 13.6% to £95.3m. Overall operating margin in the division was 9.3%.

Total divisional headcount at the end of June was 2% higher than at the same point a year ago.

From March, Travis Perkins has seen a strong rebound in activity and a reversal in the divergent fortunes of the trade and retail markets. “Although the rebound has continued in July, we expect the rate of recovery to moderate,” it said.

The company, which is resuming dividend payments, predicts modest growth in the trade market in 2010 but consumer worries will produce a small fall in the retail market value.