3rd Mar 2015 10:49
(An item published at 1002 GMT misstated the index in the last paragraph. The correct version follows.)
LONDON (Alliance News) - Travis Perkins PLC Tuesday reported higher pretax profit and revenue for 2014 as the continued recovery in the UK housing market drove good revenue growth in its general merchanting and contracts divisions, although profit growth was held back partly by restructuring costs for its plumbing and heating business.
The builders merchants reported a pretax profit of GBP321.4 million for 2014, up from GBP312.6 million in 2013, even though revenue grew strongly to GBP5.58 billion from GBP5.15 billion.
It booked GBP23 million of exceptional items in 2014, including GBP10 million of onerous lease provisions, a GBP5 million loss on the disposal of an investment, a GBP1 million gain on the value of a contingent consideration for an historic acquisition and GBP29 million of costs related to the restructuring of the plumbing and heating unit. Exceptional items in 2013 were GBP9 million.
Excluding those items, its closely-watched adjusted pretax profit rose to GBP262.3 million, from GBP321.1 million in 2013.
It said it will pay a final dividend for 2014 of 25.75 pence, meaning its total dividend for the year rose to 38 pence, from 31 pence in 2013.
"We have seen encouraging progress in the majority of our businesses during the first year of implementing the group's updated strategy. Our key priorities remain on modernising General Merchanting, transforming Wickes and reconfiguring our plumbing and heating businesses to better suit their customers' needs. Structural advantages in sourcing and supply chain allied to superior ranges, availability and value propositions should enable the group to sustain market outperformance and give us confidence in the group's prospects for the foreseeable future," Chief Executive John Carter said in a statement.
Travis Perkins said revenue rose 13.7% in its general merchanting division, 12.1% in the contracts business and 8.8% in the consumer business that includes Wickes. However, revenue declined 0.9% in the plumbing and heating business. Operating profit margin dropped slightly in both the general merchanting and contracts units, rose in the consumer business and improved 0.7 percentage points in heating and plumbing.
Travis Perkins shares were down 3.2% at 1,960.00 pence Tuesday morning, making it the worst-performing stock on the FTSE 100.
By Steve McGrath; [email protected]; @stevemcgrath1
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