Last checked at 12 Oct 2012 07:00
12 October 2012
Travis Perkins plc
Interim Management Statement - Trading in-line with Expectations
Travis Perkins, the largest supplier of building materials in the UK, today issues this Interim Management Statement. Figures below are for the third quarter to the end of September 2012 and for the year-to-date.
As expected, total group like-for-like sales per working day held up relatively well compared to quarter 2. This occurred despite continuing disruption from poor weather and the Olympics, and we saw a noticeable improvement in sales trends once these disruptions faded towards the end of the quarter, and as colder weather boosted plumbing and heating activity.
Quarter Ended 30 September 2012 |
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(One less trading day in 2012) |
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| General Merchanting | Specialist Merchanting | Plumbing & Heating | Consumer(1 and 2) | Total | |
% | % | % | % | % | ||
Total sales | (2.3)% | 0.6% | (11.6)% | 12.0% | (2.4)% | |
Like-for-like sales per trading day | (1.6)% | 1.3% | (4.7)% | (7.0)% | (3.5)% | |
1. 13 weeks ended 29 September. Total sales include Toolstation, which was consolidated from 3 January 2012.
2. On a proforma basis (i.e. including Toolstation in 2011 data) total sales would reduce to a gain of 1.6% and like-for-like sales would improve to a decrease of 4.5%.
9 Months Ended 30 September 2012
(Identical number of trading days)
| General Merchanting | Specialist Merchanting | Plumbing & Heating | Consumer(1 and 2) | Total |
% | % | % | % | % | |
Total sales | 1.1% | 2.1% | (7.3)% | 12.9% | 0.7% |
Like-for-like sales | 0.2% | 0.7% | (1.3)% | (6.2)% | (1.7)% |
1. 39 weeks ended 29 September. Total sales include Toolstation, which was consolidated from 3 January 2012.
2. On a proforma basis (which includes Toolstation in 2011) total sales would reduce to a gain of 3.2% and like-for-like sales would improve to a reduction of 3.7%.
The continuing low inflation has impacted our opportunities to drive stock investment gains. This, in addition to competitive market conditions in the three Merchanting divisions, has seen our gross margins come under pressure during the third quarter. In response we have intensified our tight management of costs.
Our debt levels have continued to fall since the half year. The sale of our St Pancras site was completed in July and the sale proceeds have now been received. Our focus on working capital reductions and capital expenditure control means we remain on course to achieve our debt target of £450m by the year-end.
There has been no material change to the financial condition of the business, with compensating movements in sales, gross margin and cost trends, and we remain on course to achieve full year published consensus earnings per share of around 95 pence.
Geoff Cooper, Chief Executive, commented:
"Trading improved in September after the uneven and fragile trading conditions experienced so far this year, and our continuing tight management of costs and efficiency gains from self help projects mean we remain on target to meet market expectations."
Ends
Enquiries: | |
Geoff Cooper, Chief Executive | |
Paul Hampden Smith, Finance Director | |
Travis Perkins PLC | +44 (0)1604 683 112 |
David Bick/Mike Feltham/Mark Longson | |
Square1 Consulting Limited | +44 (0)20 7929 5599 |