22nd Jun 2021 14:20
(Alliance News) - Travis Perkins PLC expects full-year earnings to beat market expectations following a strong recent trading performance, it announced on Tuesday.
Shares in the company were up 6.6% at 1,722.50 pence each in London in afternoon trading following the announcement, making the stock the best performer in the FTSE 250.
The builders merchant raised its guidance for full-year adjusted operating profit of at least GBP300 million, significantly ahead of market expectations at around GBP259 million.
"The ongoing strength of the group's trading performance through the second quarter remains underpinned by demand in both domestic and commercial renovation, maintenance and improvement markets," commented Chief Executive Nick Roberts.
"Our merchanting businesses have recovered strongly while Toolstation's performance continues to be ahead of expectations."
Travis Perkins's merchanting business saw sales growth of 6.3% during April and May when compared with the same period in 2019. Sales at Toolstation UK were up 70% year-to-date compared to the comparable period in 2019 and Toolstation Europe was performing ahead of management expectations, the company added.
Earlier this month Wickes, which was spun-off from Travis Perkins into a standalone listed business in March, said its 2021 profit will be at the higher end of market expectations as a home improvement boom drove sales up.
Wickes shares were up 2.9% at 248.99p on Tuesday afternoon.
By Will Paige; [email protected]
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