15th Oct 2007 07:01
Travis Perkins PLC15 October 2007 TRAVIS PERKINS PLC 15 October 2007 TRAVIS PERKINS PLC Trading update - Continued momentum The Group is hosting an Investor and Analyst visit in London today and providesthe following trading update: Despite early signs of the expected reduction in market growth, our businesscontinues to make good progress in the second half of 2007, with further gainsin market share, an acceleration of network expansion and improved profitabilityand returns. In total, our group turnover to the end of September is up 11.3% compared to theequivalent period in 2006. Overall, trading continues to be in line with ourexpectations with both the merchanting and retailing businesses performing well. For the first nine calendar months of 2007, total turnover in our merchantingdivision is up by 12.5%, with like for like turnover per trading day up by 9.2%.Total turnover in the general merchanting business is up by 11.7% withlike-for-like turnover per trading day up by 9.4%. For this period, ourspecialist merchanting business has total turnover up by 14.1% and like-for-liketurnover per trading day up by 8.9%. These increases represent gains inlike-for-like, organic and total market share as our businesses are increasinglyrecognised by customers as a better place to get building materials. Trading at Wickes continues to progress in line with our expectations. Totalturnover for the 39-week trading period ended on September 29 was up by 8.5%.For this period, like-for-like sales per trading day were up by 5.7% with coreproducts up by 8.1% and showroom sales lower by 6.4%. Our retailing business hasalso grown its like-for-like and total market share in this period, with thisrate of gain increasing in the second half. As expected, gross margins areslightly below the comparable period in 2006, mainly reflecting continued pricecompetition in key value lines. In the nine months to the end of September we expanded our business and nowtrade from 1065 locations. In this period we added to our network a net 40 newmerchanting branches and 3 new Wickes stores, increasing Wickes' selling spaceby 5.6%. In addition, we recently entered into contracts to acquire a further 7new retail outlets which are expected to open before the key Easter tradingperiod in 2008. Our pipeline of further opportunities for network expansionremains good and we continue to examine options for entering adjacent channelsfor building material distribution. The group continues to exercise tight control over costs and operational cashflow remains good. In the last 2 months £39m has been spent on shares for both past and currentshare schemes. This provides a hedge against market movements between option andexercise price. Whilst lead indicators are pointing to a slowing of market growth, in 2007 wehave increased the resilience of our business to variations in market growththrough programmes designed to continue gains in both like-for-like and totalmarket share and drive further gains in productivity. With these, and ourtraditional strengths of cost vigilance and tight cash management, we areconfident of making further progress in 2008 and beyond. Enquiries: Geoff Cooper, Chief ExecutiveTravis Perkins PLC Tel: +44 (0)1604 683 222 Paul Hampden Smith, Finance DirectorTravis Perkins PLC Tel: +44 (0)1604 683 222 David Bick/Mike Feltham/Mark LongsonSquare 1 Consulting LTD Tel: +44 (0)20 7929 5599 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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