Travis Perkins‘s turnover in the first six months of 2005 was up marginally but trading conditions continue to be “challenging”, the company has said in a trading statement.
The group’s core builders merchant business recorded a 6.2% growth in total turnover per trading day (including the Wickes acquisition), compared to a year ago, while like-for-like turnover grew by 1.6%.
Travis Perkins said a sharp slowdown in consumer spending from February has had some impact on trade market volumes, especially in repair, maintenance and improvement (RMI) work. Consumer-related RMI activity has also been affected but commercial and government-related work remained robust.
The group said the second quarter had seen a gradual recovery in the DIY market, though improvement was patchy and slower than anticipated.
Wickes’ turnover for the half year was down by 1.7%, with like-for-like turnover suffering a 4.9% reduction. But performance is improving from the weakest position in February and Travis Perkins says Wickes is gaining market share from national competitors.
Travis Perkins still expects to grow merchanting profits in 2005, as well as adding profits and synergies from the Wickes acquisition.
