This way for profits.

BSS profits on growth

Published:  24 November, 2010

LEICESTER: BSS Group, which agreed to be bought by UK builders' merchant Travis Perkins, posted a 24.5% rise in adjusted pre-tax profit on growth across units.

The company said today that it started the second half well with like-for-like sales in the first seven weeks up 5.9%.

"The improvement in trading results reflects a pick up in our core repair and maintenance markets, as the broader economy starts to recover, a more favourable price environment plus a focus on improving trade terms," BSS said in a statement.

BSS, which made its last financial report as an independent group with these results, said April to September adjusted pre-tax profit was £29m, up from £23.3m last year. Revenue increased 10.2% to £717.1m.

Gavin Slark, group chief executive, said, "BSS has delivered an excellent set of half year trading results, with profit up more than 30% on the previous year. We have remained focused throughout the bid process as all three divisions have picked up momentum and have delivered growth in revenue and profits. BSS is starting to realise its recovery potential."

On 5 July, BSS agreed for a £557.6m takeover by Travis Perkins, making Travis Britain's biggest plumbing and heating trade and retail distribution business. BSS said it was on track to complete the sale of the group to Travis Perkins by the end of this year.

BSS shares, which have risen 38% since Travis Perkins in May said it would make a formal offer for BSS in late June, closed at 449.30p yesterday.

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