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(Alliance News) - Travis Perkins PLC on Thursday reported a bright start to 2021 as it prepares to demerge DIY chain Wickes towards the end of the month.
Shares in the builders' merchant were up 2.4% at 1,683.09 pence in London early Thursday, the top performer in the FTSE 250.
Travis Perkins reported a 17% jump in like-for-like sales in the first three months of the year, excluding soon-to-be spun-off Wickes, and 6.8% total sales growth. Wickes like-for-like sales soared 20% in the same period, with total sales up 19%.
Commenting on the performance excluding Wickes, Travis Perkins said that January and February saw a continuation of the trends from the last quarter of 2020. During March, however, there was a "marked step up in activity" with pent-up demand and continued high levels of housing transactions fuelling higher repair, maintenance and installation spend.
At Wickes, the "excellent" Core performance seen in the second half of 2020 continued into the current year, Travis Perkins said.
"The group has enjoyed an encouraging start to the year with robust like-for-like sales growth across our businesses, underpinned by strong demand in the RMI market. The Merchanting business has maintained the momentum seen in the second half of last year while Toolstation continues to outperform, driven by its convenient and trade focused proposition," said Chief Executive Nick Roberts.
Roberts added: "I am also pleased to report that the Wickes demerger process remains on schedule to be completed at the end of April, leaving the business a simplified and trade focused group."
The demerger is due to complete shortly, with trading in Wickes shares commencing on April 28. Travis Perkins' share consolidation will become effective following the market close that day, with trading in new Travis Perkins shares to start on April 29.
"We are encouraged by the robustness of the RMI market and the continued recovery in our other key end markets. However, at this early stage in the year, our expectations remain unchanged as we continue to make progress on the delivery of our longer-term strategic plans," the CEO said.
By Lucy Heming; lucyheming@alliancenews.com
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