(Alliance News) - Travis Perkins PLC on Thursday said it has seen a recovery from the lockdown period, highlighting it expects annual performance to be in the upper half of the current range of analysts' expectations.
For the three months ended September 30, the FTSE 250-listed builders' merchant posted like-for-like revenue growth of 3.9%, although total group sales declined by 3.4%, reflecting branch closures since June.
The Merchanting business saw total sales decline by 11%, and Plumbing & Heating sales fell by 20%. However, this was offset by a 50% increase in sales at tools and accessories-focused retail chain Toolstation, as well as a 17% year-on-year rise in sales for its Retail segment Wickes.
For the year-to-date, total sales for Merchanting, P&H and Retail fell by 21%, 29% and 0.6%, respectively, while Toolstation sales increased 42%, resulting in total group sales recording a 15% year-on-year decline.
Looking ahead, Travis Perkins said: "Based on the assumption that current volume trends continue, including the ongoing strength in DIY sales, and that any further lockdown measures introduced do not have a significant impact on the group's end markets, the group expects its earnings before interest, tax, depreciation, and amortization performance for 2020 to be in the upper half of the current range of analysts' expectations.
Company-compiled market consensus for 2020 forecast Ebitda range of between GBP222 million to GBP261 million, down from the GBP532.3 million reported in 2019.
As at September 30, the company had cash of GBP580 million, which when combined with its undrawn revolving credit facility gave it overall headroom of GBP980 million.
Shares in Travis Perkins were trading 1.8% higher at 1,241.50 pence each on Thursday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Travis Perkins (TPK)