Interim Management Statement - 1 January to 30 April 2012
Good progress and continued market share gains
Travis Perkins, the largest supplier of building materials in the UK today issues this Interim Management Statement for the period from 1 January to 30 April 2012.
Group revenue for the four months to the end of April, which included two more trading days in our merchanting divisions and plumbing and heating division than for the comparable period in 2011, was up 4.4%*. We have continued to gain like-for-like market share in all four divisions.
Plumbing & Heating
Total revenue change 4 months to 30 April
Like-for-like per day 4 months to 30 April
Like-for-like per day 2 months to 30 April
Total revenue change 17 weeks to 30 April*
Like-for-like 17 weeks to 30 April**
Like-for-like 9 weeks to 30 April**
* Includes Toolstation which was consolidated from 3 January 2012
** On a proforma (which includes Toolstation) basis the like-for-like sales would be -2.6% and -3.2% for the 17 weeks and 9 weeks respectively.
After a good first quarter, record levels of rainfall contributed to a weaker performance in April and the early part of May where activity levels at sites continue to be impacted by the very wet weather.
Our increased focus on gross margins has yielded good results. The gross margin, before synergy gains, across the group is in line with the equivalent period last year. Year-on-year inflation for the four months is around 2.5%.
The integration of BSS, following the acquisition, continues to progress well as we roll out new branch trading systems. Our synergy programme remains on course to deliver the £30m of gains this year that we previously outlined.
We have made good progress towards securing our targeted £15m property profit for the year. Due to the timing of contract completions in 2012 this gain is expected to be recognised in H2 whereas in 2011 the comparable gain to EBITA occurred in H1.
With our continuing focus on cash generation, underlying net debt has reduced by £50m in the four months to 30 April from the £583m reported at 31 December 2011. We are on track to meet our £450m year-end net debt target.
There has been no material change to the financial condition of the business.
Overall at a group level the outlook for the year remains unchanged and we remain confident of meeting consensus expectations.
Our next update is our interim results on 26 July.
Geoff Cooper, Chief Executive, commented:
"We are pleased with the good progress in the first quarter, in particular the balance between continued share gains and our achievements on gross margins."
Geoff Cooper, Chief Executive
Paul Hampden Smith, Finance Director
Travis Perkins PLC
+44 (0)1604 683 112
David Bick/Mike Feltham/Mark Longson
Square1 Consulting Limited
+44 (0)20 7929 5599
Following the restructuring of our operating divisions on 1 January 2012 the segmental information contained in the 2011 interim accounts has been restated as follows:
2011 Half Year
Plumbing & Heating
Adjusted segment result £m
Adjusted operating margin
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