Travis Perkins

Tuesday, 4th December 2018 09:35 - by Rajan Dhall

This morning in the latest capital markets day Travis Perkins confirms it wants to simplify the business. The Co. say they want to reduce complexity, speed up decision making and improve agility whilst further reducing the above-branch and distribution cost base.  The Group is targeting further annualised cost savings of £20-30m which will be delivered over the next 18 months. Here are some other highlights:

• Focus on our trade customers and drive returns from our advantaged trade businesses
• Simplify the Group and streamline the cost base to drive strong cash flow and earnings momentum
• Intention to divest the Plumbing and Heating Division following successful transformation
• Improve the performance of Wickes to create options to maximise value over the medium term

Looking at the chart now its clear to see there has been some downward pressure. Recently the Co. have made a lower high as the most recent wave down stopped at the 1000p mark. This then means that the 1189p level becomes an important level as if it is broken we will get the first higher low and high wave high in months. From today's news, I don't think the market will react too heavily. There is not too much in the way of detail but it does indicate that the business is willing to move in the right direction. Keep an eye out on the 1189p level as if it breaks to the upside we could get some important indications for future trend. Lastly, I would like to mention the large volume spike two sessions ago. It seems there has been some buying pressure running through the stock and that coupled with the news today could give us a clue that there may be some internal buying.