28th Apr 2020 09:57
(Alliance News) - Travis Perkins PLC said Tuesday its first quarter performance was significantly hurt by the Covid-19 pandemic despite the majority of the period being solid, as it looks to open up more operations within the enforced lockdown in the UK.
The FTSE 250 builders' merchant said for the three months to the end of March, total sales were down 4.6%, as strong growth in the Toolstation business was more than offset by declines in Merchanting and Plumbing & Heating.
On a like-for-like basis, sales were down 3.8%.
Since late March, when the lockdown was implemented, Travis Perkins has been running a "service light" operating model, focusing on serving customers through remote, non-contact channels.
A third of the group's Merchanting branches and half of all Plumbing & Heating branches remain open, since they are running services to support essential construction programmes, including the construction for the National Health Service.
For the first three weeks of April, total revenue was one-third of the same period in 2019 on a comparable basis.
Since Monday last week, Travis Perkins has been opening more of its Merchant branch network, which will continue to operate the service-light, non-contact operating model. In addition, revenue from Wickes and Toolstation have improved, as the businesses start to adapt to the changing business environment.
Travis Perkins said it has taken several steps to save cash. The board and leadership team have reduced their salaries by 20% for three months with effect from May, and half of Travis Perkins's 30,000 employees were furloughed for the first three weeks of the lockdown.
Looking ahead, Travis Perkins is unable to provide an accurate assessment on trading, owing to the considerable levels of uncertainty, and has withdrawn its market guidance.
"In light of the Covid-19 emergency, we have established a new operating model that has kept colleagues and customers safe, operating within government guidelines, and enabling branches across all of the group's businesses to remain open. Moreover, we have provided essential services and support to keep the nation's critical infrastructure maintained and operational and the UK's homes warm, dry and safe during this time of need," said Chief Executive Nick Roberts.
Shares in Travis Perkins were up 2.2% at 1,042.89 pence on Tuesday in London.
By Dayo Laniyan; [email protected]
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