Travis Perkins makes encouraging start to 202119 April 2021
Travis Perkins plc’s first quarter trading update shows the group had an encouraging start to the year. It also states that the Wickes demerger on track for completion on April 28.
The company’s positive start to 2021 was driven by strong RMI demand with Group (excluding Wickes) like-for-like sales growth of 17.4% and 11.8% on a two-year like-for-like basis.
The update shows good like-for-like growth in merchanting and plumbing and heating, up 15.5% and 11.4% respectively, underpinned by sales retention from the 2020 restructuring programme
Toolstation growth has continued to accelerate, with like-for-like sales up 42.0%
The ongoing strong performance in Wickes saw like-for-like sales up 19.7%. There was excellent growth in core business of 38.5% partially offset by DIFM (do-it-for-me), which was down 25% on a like-for-like basis due to showroom closures.
The Wickes demerger is due to complete with trading in Wickes shares commencing on April 28. Travis Perkins’ share consolidation is to be effective following market close on April 28, with trading in new Travis Perkins shares commencing on April 29.
“The Group has enjoyed an encouraging start to the year with robust like-for-like sales growth across our businesses, underpinned by strong demand in the RMI market,” said Nick Roberts, chief executive. “The merchanting business has maintained the momentum seen in the second half of last year while Toolstation continues to outperform, driven by its convenient and trade focused proposition.
“I am also pleased to report that the Wickes demerger process remains on schedule to be completed at the end of April, leaving the business a simplified and trade focused group.
“We are encouraged by the robustness of the RMI market and the continued recovery in our other key end markets. However, at this early stage in the year, our expectations remain unchanged as we continue to make progress on the delivery of our longer-term strategic plans.”