(Alliance News) - Travis Perkins PLC said Wednesday at its investor day that it is "extremely well positioned" and looks forward to the future.
In its half-year results, Travis Perkins reinstated its payout following a lucrative and busy first half which saw the builders' merchant demerge its Wickes retailing arm and sell its plumbing and heating unit.
The FTSE 250 company will return proceeds from the unit sale to shareholders in the form of a special payout and a buyback. It also declared its first ordinary payout since suspending dividends in March of last year.
Travis Perkins declared a 12.0 pence per share interim payout. It also plans to distribute proceeds from the sale of its plumbing and heating business in the form of a 35p per share special dividend and a share buyback.
Chief Executive Nick Roberts, on Wednesday, said: "I am delighted that the strategic actions outlined in 2018 to simplify the group and focus on our trade customers have been successfully completed. Having negotiated the challenges of the Covid-19 pandemic, the group is extremely well positioned and looking forward to the future.
"Today we set out our ambition to become the leading partner to the construction industry, showing how the group will adapt to changing customer requirements and maximise the opportunities that will arise from the need to both expand and decarbonise the built environment of the UK," he continued.
Looking ahead, Travis Perkins expects adjusted operating profit of at least GBP310 million for 2021, up 37% from GBP227 million in 2020. Its previous guidance was for adjusted operating profit of GBP300 million.
Roberts added: "The group's market leading trade businesses offer exciting growth potential, through both their own individual strategies and also collaboration initiatives between the strong portfolio of assets held within the group. Combining the scope for enhanced earnings with the highly cash generative nature of our businesses, we believe that the group is well placed to offer attractive future returns to shareholders."
Shares in Travis Perkins were 0.4% higher in London on Wednesday at 1,664.00 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Travis Perkins (TPK)