(Alliance News) - Travis Perkins PLC on Wednesday said it has seen strong demand continuing in the do-it-yourself market that resulted in solid sales in its businesses Wickes and Toolstation.
During October and November, the Northampton-based builders' merchant said it delivered like-for-like sales growth of 8.6%, due to the company making good progress on retaining sales from branches closed as part of its restructuring activity during the summer.
Travis Perkins said it is seeing "encouraging recovery" in the domestic repair, maintenance and improvement markets across its smaller trade customers. Volumes with larger customers continued to recover more slowly, which impacted the rate of sales recovery in its merchants in BSS, CCF, Keyline and the large contract side of the P&H business, it said.
Some of its larger customers were impacted by the second UK lockdown in November, as kitchen and bathroom showrooms were forced to close.
Travis Perkins said it will return the business rates relief it received from the UK government due to Covid-19 pandemic. This totals around GBP50 million, which will correspondingly reduce the expected outturn for its group adjusted earnings before interest, tax, depreciation and amortisation for 2020, it said.
In November, the company raised GBP250 million via a long five-year public bond issuance at a coupon of 3.75%. The proceeds will be used to repay the GBP250 million September 2021 bond maturity before the end of December, it said.
The company also said in November it plans to redeem all of its outstanding GBP250.0 million 4.375% guaranteed notes due 2021.
Shares in Travis Perkins were up 2.8% at 1,335.00 pence in London on Wednesday.
By Zoe Wickens; zoewickens@alliancenews.com
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Travis Perkins (TPK)