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Last checked at 
16 May 2013 07:00
16 May 2013
Travis Perkins plc
Interim Management Statement - 1 January to 30 April 2013
Challenging trading conditions in first quarter, but an improving trend through April and May
Group revenue for the four month period ended 30 April 2013 was 1.2% lower than the corresponding period last year. Like-for-like sales were 1.8% lower.
The very cold start to the year materially affected construction industry activity, and this coupled with continued tough trading conditions, impacted sales. However, our performance in April and early May was encouraging following a return to more normal seasonal weather. The shape of sales for the year so far has been consistent with our guidance, albeit the first quarter volumes were lower than anticipated.
4 Months Ended 30 April | ||||
Change on prior year | General Merchanting | Specialist Merchanting | Plumbing and Heating | Consumer |
Total revenue | 0.3% | 5.7% | (2.4)% | (5.0)% |
Like-for-like revenue* | (0.7)% | 5.9% | (2.6)% | (6.1)% |
*Like-for-like revenue reflects a comparable number of trading days
The Specialist division continued to benefit from the reduction in market capacity. However, an early Easter coupled with the well documented unseasonably low temperatures resulted in reduced transaction volumes in Wickes.
For the first four months the Group experienced sales price deflation continuing the 2012 trend.
In response to the tough trading conditions and our customers' continuing focus on value and quality, new fixed price promotional offers were introduced in the General Merchanting business and branded ranges were extended in Wickes. Although it is still very early days these changes have been well received. We have maintained our focus on cost control including lowering divisional overheads.
The impact on first quarter sales is unlikely to be recovered in the remaining eight months of the year. Nevertheless, given our continued focus on margin and costs, management expects that full year earnings per share should be broadly in line with market expectations, although it is likely that earnings will be more heavily weighted to the second half than in previous years.
Geoff Cooper, Chief Executive, commented:
"Latent demand and better weather has contributed to the encouraging trend at the start of the second quarter, with sales recovering in April and early May as activity has picked up. Leading indicators have strengthened, which continues to suggest there should be an improvement in volumes in the second half of the year as we anticipated. Overall, the Group continues to be in good shape and poised to respond to any meaningful signs of market recovery."
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Enquiries:
Geoff Cooper, Chief Executive
Tony Buffin, Finance Director
Travis Perkins plc +44 (0) 1604 683 222
David Bick / Mike Feltham / Mark Longson
Square1 Consulting Limited +44 (0) 20 7929 5599
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