Travis Perkins has reported a 37% rise in annual pre-tax profits to £269.6m (2010: 196.8m).
Chief executive Geoff Cooper said 2011 had been a good year despite a depressed construction market, as the company had improved its services, gained market share and exceeded its expectations with the acquisition of BSS.
“With the prospect of the market softening as we go into 2012, the continued improvement in our offer to customers and gains from strategic developments will be the engine of this growth,” said Mr Cooper.
Group sales were up 52% to £4.7bn, though the BSS takeover accounted for 43.7% of this, with like-for-like sale growth at 6%. Travis Perkins’ core merchanting division posted a like-for-like sales growth of 9.4%, with volumes up 3.9%, supported by higher than expected price of inflation of 5.5%.
Adjusted operating profits in the merchanting division were up 9% to £201.8m.
Conditions were tougher in the retail division, comprising principally Wickes, with adjusted operating profits down £14m to £45m. Sales volumes fell by 4.3% but price inflation increased turnover by 2.9%.
Mr Cooper said Travis Perkins’ trading strategies in 2011 had been aimed at maximising operating profits by sustaining its volume outperformance and using it to drive economies of scale.
“With market volumes likely to fall in 2012, we aim to modify this stance on a selective basis to reflect market trends in order to protect margins, as we have done successfully in the past.”
Last year Travis Perkins acquired 13 stores from the administrators of Focus DIY for £8.4m and has since converted them to the Wickes format.
It also acquired 25% of a small roofing supplies company in the north of England, with the option to acquire the rest.
