Travis Perkins (TP) has reported an 18.7% increase in pre-tax profits to £261.4m for the year ended December 31, 2007, but said its early sales performance this year reflected the expected slowing of market growth.
The merchant’s sales in 2007 totalled £3.1bn, up 11.9% on 2006.
Geoff Cooper, Travis Perkins chief executive, said all the TP businesses had performed well, with the trade division’s like-for-like sales per working day up 9.2% on a year ago. This comprised 5.8% price inflation and a 3.4% growth in volume.
However, TP said turbulence in financial markets and the subsequent impact on the economy, consumers and the construction sector was expected to have an adverse effect on 2008 growth rates.
Like-for-like sales in the merchanting division during January and February 2008 were ahead by 5.7%, down by 3-4% on sales trends achieved in the fourth quarter of 2007.
TP said much debate has centred on whether current conditions mirror the 2005 downturn or the severe slowdown of 1991-1993.
“Whilst no comparison will produce a perfect match, thus far in the current year our analysis of lead indicators currently suggests activity levels may bear a greater resemblance to 2005,” it said.
