27th Apr 2005 11:44
Travis Perkins PLC27 April 2005 27 April 2005 Travis Perkins remains on track to meet its financial targets for 2005 - Chairman at AGM today "Despite challenging conditions in consumer markets, our business remains ontrack to meet its financial targets for 2005", Tim Stevenson, chairman of TravisPerkins plc, will tell shareholders at the company's Annual General Meeting inLondon today. "For the first four calendar months of 2005, total turnover per trading day(i.e. after adjusting for two extra trading days in 2004) in the Travis Perkinsbuilders merchant businesses was up by 7.0% with like-for-like turnover pertrading day up by 2.4%. For this period, our specialist merchanting businesses,comprising Keyline, CCF and City Plumbing, saw total turnover per trading daydown by 0.2% and like-for-like turnover per trading day down by 3.0%. "Trading at Wickes, acquired by the Group on 11 February 2005, is graduallyrecovering from the slow start and adverse weather impact experienced inFebruary and early March. Total turnover per trading day at Wickes for theseventeen week trading period to 23 April 2005 was lower by 1.1% compared to theprevious year. For this period, like-for-like turnover per trading day was lowerby 2.7%, with core products down by 2.2% and like-for-like turnover of showroomproducts down by 5.3%. "In the first quarter of 2005 the Group's merchanting division has benefitedfrom productivity gains and strong management of gross margins. Synergy gainsfrom the initial work to integrate Wickes in to the Group are running ahead ofexpectations and in addition we have identified further opportunities for costreduction within Wickes. Also our net borrowings are running marginally lowerthan planned levels. Although there is still much to do, we are increasinglyconfident of achieving synergy targets. "Since the end of 2004, in addition to acquiring 171 Wickes stores, we haveadded a net 13 new branches to our merchanting network and have opened 1 newWickes store. We now trade from 936 locations in the UK. "Whilst trade and construction markets are not completely immune from economicpressures, the majority of our customers in these sectors continue to reportreasonable levels of activity and healthy order books, although there are somesigns of work being delayed. We have not changed our view that the DIY marketwill recover only slowly and will remain tough for some time. Provided consumermarkets continue their slow recovery and trade markets perform in line with ourexperience so far this year, we remain confident of our ability to meet ourfinancial targets for 2005." Issued on behalf of Travis Perkins plc by Tavistock Communications Limited(contact Keith Payne, tel:020 7920 3150) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Travis Perkins