* Raises FY21 profit outlook by 3% to 310 mln stg
* Declares special dividend of 35p per share
* Guidance lift leaves conservative H2 - Jefferies
(Adds CFO comment, background, share movement)
By Aby Jose Koilparambil
Aug 3 (Reuters) - British building materials supplier Travis
Perkins raised its profit expectations, as pent-up
demand after pandemic disruptions last year leads a strong
rebound in the market, but it still took a cautious stance due
to virus uncertainties.
Its finance chief Alan Williams told Reuters that the
company, the country's largest seller of building materials,
will sharpen its focus on its division which sells materials
such wood and sand to builders' merchants.
"I'm expecting the revenue growth to continue and what has
been driving it is repair and maintenance improvements part of
the market," Williams told Reuters.
The comments come after the mid-cap company, which currently
has three other specialist divisions, spun off of its home
improvement business Wickes and sold its plumbing and
heating division earlier this year.
Britain's construction industry recorded its fastest growth
in 24 years in June, bolstered by a jump in demand for new homes
and commercial property.
The group now expects at least 310 million pounds ($430.87
million) in annual adjusted operating profit from continuing
operations, up from at least 300 million pounds forecast in
June.
'CAUTIOUSLY OPTIMISTIC'
Jefferies analysts, however, said the outlook lift leaves a
conservative second-half. Shares were trading about 2.6% lower.
"I am cautiously optimistic around the outlook for the
business," Chief Executive Nick Roberts said in a statement.
Travis announced a 35 pence per share special dividend,
which is part of the 325 million pounds proceeds from the sale
of its plumbing and heating business, while rest of the
consideration will be returned to shareholders through a share
buyback plan later.
It reported revenue of 2.30 billion pounds and adjusted
operating profit of 164 million pounds for the six months ended
June 30, compared with the pandemic-hit low base in 2020 of 1.67
billion pounds and 17 million pounds, respectively.
Williams said the company has "largely managed" supply chain
disruptions arising from the pandemic and it has been able to
offset the impacts of inflation.
($1 = 0.7195 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Subhranshu Sahu and Peter Graff)