20th Oct 2022 12:47
(Alliance News) - Travis Perkins PLC on Thursday said it remains focused on managing its cost base, with the company forecasting annual profit in line with market expectations.
For the three months ended September 30, the Northampton, England-based building supplies retailer reported total revenue growth of 11%, and like-for-like sales growth of 7.4%. Total sales growth slowed from 14% a year earlier.
Travis Perkins said its merchanting arm continued to outperform the wider market. The unit delivered total revenue growth of 12% for the quarter.
Reflecting the uncertain macroeconomic situation, Travis Perkins General Merchant saw some slowing of demand in the smaller trade customer segment.
However, demand from larger repair and maintenance contractors "held up well".
Specialist merchants, which represent around 40% of the segment by revenue, benefitted from exposure to predominantly larger subcontractors across new build commercial and housing, industrial maintenance and infrastructure projects.
Toolstation, the group's supplier of tools, accessories and lightside building products, returned to growth with total sales up by 6.1%.
Travis Perkins said it remains focused on "tightly" managing operating costs, as it looks to weather "elevated levels of input cost inflation".
"All of our businesses see opportunities to further develop their propositions to meet our different customers' needs, as they seek to navigate an increasingly complex construction landscape," Chief Executive Nick Roberts said.
"We remain confident that our market-leading businesses, backed by focused capital allocation, a strong balance sheet and significant strategic growth opportunities, leave us well-placed to outperform in our markets."
Travis Perkins expects full year operating profit "around the middle" of the current market consensus range of GBP304 million to GBP340 million. Operating profit in 2021 amounted to GBP348.5 million.
Travis Perkins shares were trading 0.9% higher at 799.80 pence each in London on Thursday morning.
By Holly Beveridge; [email protected]
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