Travis Perkins sales up by 6.5 percent despite cold snap
Takeover of BSS Group on schedule for Tuesday
By CFOWorld.co.uk | CFO UK | Published 10:16, 14 December 10
Travis Perkins announced a 6.5 percent increase in turnover for the 11 months to the end of November and confirmed that the acquisition of the BSS Group is expected to complete on Tuesday.
In a trading update released on Tuesday, the builders’ merchant reported a strong performance in the previous two months. But the company said "exceptionally poor weather at the beginning of December" will have some impact on sales trends and financial performance for the last month of the year, with the overall outlook remaining unchanged from the interim results announced in July.
The company reported a like-for-like increase of 7.8 percent in the merchanting division compared to the 11 months of the previous year and a 10.5 percent increase in the previous two months up to 30 November, with gross margins for the second half of the year in line with the trend of the previous six months, below last year.
Travis Perkins focuses on the builders’ merchant and home improvement markets, across eight businesses including Keyline Builders Merchants, Wickes, Benchmarx, Tile Giant and Toolstation, in which the company has a 30 percent stake.
Wickes sales rose 0.6 percent on a like-for-like basis, despite a drop of 2.1 percent in core products, bolstered by a 12.5 percent increase in kitchens and bathrooms. However the company reported a 4.2 percent total increase in the last eight weeks, “with some evidence of buying ahead of the VAT increase."
The company said in the update that it expects the acquisition of BSS Group to be completed on Tuesday, in a £558 million pound deal which will see the creation of the UK’s market leader in the plumbing and heating distribution sector.
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