24th Apr 2006 07:01
Travis Perkins PLC24 April 2006 24 April 2006 Travis Perkins Plc Travis Perkins continues to make progress At today's Annual General Meeting in London, the Chairman, Tim Stevenson, willprovide the following trading update: "Our business continues to make progress in markets that, although improved onconditions seen at the end of 2005, are recovering only slowly. In total group turnover to the end of April is expected to be up by 9% comparedto the equivalent periods in 2005. Overall trading is in line with ourexpectations with merchanting performing more strongly than retail. "For the first four calendar months of 2006, total turnover in our merchantingdivision is expected to be up by 2.8%, with like-for-like turnover per tradingday lower by 1.6%. Specialist merchanting performed ahead of generalmerchanting, partly driven by the turn round in our plumbing and heatingbusiness. Total turnover in the general merchanting business is expected to beup by 2.5%, with like-for-like turnover per trading day lower by 2.8%. For thisperiod, our specialist merchanting business is expected to see total turnover upby 3.4% and like-for-like turnover per trading day up by 0.6%. "Our merchanting division like-for-like sales performance for this period is inline with both our expectations and estimated market growth in 2006, with volumegains from our pricing re-alignment in 2005 continuing to return profits inexcess of the margin investment made. Consequently, we continue to leave ourmargin investment policy unchanged. "Trading at Wickes is recovering slowly from the difficult market conditionsexperienced at the beginning of the year with the pace of recovery still beingimpacted by weak consumer spending. Total turnover for the sixteen week tradingperiod ended on April 22 2006 was lower by 6.1%. For this period, like-for-likesales per trading day were lower by 9.4%, with core products down by 9.9% andshowroom sales lower by 7.2%. Easter trading was satisfactory. "Our retailing business has grown its market share in this period, with ourlike-for-like sales performance ahead of estimated market growth. Our grossmargins remain slightly ahead of expectations and the comparable period in 2005,excluding synergy gains. "The group continues to exercise tight control over costs and cash flow remainsgood with average net debt better than our expectations. Our merchantingproductivity is up by 4% over the comparable period in 2005, and retailproductivity is ahead of our expectations. Since the end of 2005 we have added a net 9 new branches, to our merchantingnetwork and 2 new Wickes stores, and we now trade from 994 locations. "As we indicated in March, we continue to expect challenging trading conditionsfor the remainder of the first half of the year. Lead indicators, particularlyfrom the housing market, continue to suggest activity levels in our markets willimprove gradually in the second half: in that context we currently expect thatour second half performance will be stronger than the comparative period in2005." - Ends - Enquiries: Geoff Cooper, Chief ExecutivePaul Hampden Smith, Finance DirectorTravis Perkins PLC +44 (0) 1604 683131 David Bick/Mike FelthamHolborn Public Relations +44 (0) 207 929 5599 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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