22nd Apr 2015 06:46
LONDON (Alliance News) - Travis Perkins PLC Wednesday said total sales rose 7.2% and like-for-like sales grew 5.1% in the first quarter of 2015, keeping well ahead of its medium-term like-for-like sales growth target.
The builders merchant said strong growth in its general merchanting, consumer and contracts businesses more than offset a 3.7% decline in total sales and 6.1% decline in like-for-like sales in its heating and plumbing business.
"The majority of our businesses performed well against strong comparators in the first quarter, driven by the investments we have made to improve our propositions in the initial stages of our five-year plan," Chief Executive John Carter said in a statement.
The company, which is targeting like-for-like sales growth of between 1% and 3% a year over the medium term, said its three priorities for the year as a whole remain unchanged: the modernisation of Travis Perkins, the transformation of Wickes, and the re-segmentation of the plumbing and heating businesses.
It said total sales were up 8.7% and like-for-like sales were up 6.0% in its consumer business in the first quarter, with Wickes' expanded outdoor product range being well received ad online sales growing strongly.
Travis said it is making good progress with revamping its heating and plumping branches, and the early performance from the converted branches offers "longer-term encouragement and
management remain convinced of the merits of re-allocating capital to higher return opportunities".
Its general merchanting total sales rose 9.4% in the quarter with like-for-like sales up 8.1%, while total sales were up 17.3% and like-for-like sales up 15.1% in its contracts business as it continued to take market share.
The overall sales growth for the first quarter of 2015 is well below the growth the company reported in the first quarter of 2014, although at that stage the market was recovering very strongly from a downturn in the wake of the financial crisis and the company's plumbing and heating unit was being buoyed by strong demand for new boilers thanks to a UK government scheme. Total sales grew 15.6% and like-for-like sales by 12.7% in the first quarter of 2014.
By Steve McGrath; [email protected]; @stevemcgrath1
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