28th Jul 2020 10:47
(Alliance News) - Travis Perkins PLC on Tuesday reported a massive knock in sales over the first half of this year, specifically during the second quarter due to Covid-19, but says markets are 'recovering well'.
The Northampton, England-based builders' merchant saw a decrease of 19% in like-for-like sales in the first half ending June 30, with merchanting taking the biggest knock, decreasing 26%.
Total sales for the half were down 20%, with group revenue totalling GBP2.8 billion year-on-year from GBP3.5 billion. The company said this was due to the impact of Covid-19 and the resulting lockdown.
The dire effects of lockdown were reflected in the second quarter ending June 30, with like-for-like sales down a massive 35%, compared to like for like sales growth decreasing only 3.8% in the first quarter ending March 31. Total sales in the second quarter fell 36%.
April's group sales were drawn to a standstill when lockdown was first imposed with like-for-like sales down 64%, recovering to a decrease in sales of 6.7% year-on-year in June.
Travis Perkins said: "Despite the closure of 165 branches in June, representing around 8% of the group's overall estate, the group has continued to experience an improving trend on total sales volumes so far in July, with the group's total sales run rate now close to prior year."
The company had GBP455 million in cash at June 30, giving it a "strong" overall liquidity of GBP855 million.
Travis Perkins shares were up 1.9% at 1,226.00 pence each on Tuesday in London.
By Greg Roxburgh; [email protected]
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