Triumphant in trade, declining in DIY: Travis Perkins’ first half of 2018

Published:  01 August, 2018

Trade is performing well, but there are challenges in the DIY market, according to Travis Perkins’ interim report for the first half of 2018.

The builders’ merchant reported overall solid revenue growth of 4.4%, with like-for-like growth of 4.2%. The report also shows:

• General merchanting sales increased by 0.9% and by 0.6% on a like-for-like basis

• Trade tool supplier Toolstation’s sales increased by 17.6% and by 10.7% on a like-for-like basis

• Plumbing and heating sales increased by 15.7% and by 19.8% on a like-for-like basis

• DIY retailer Wickes’ sales declined by 5.8%, and by 7.7% on a like-for-like basis

• Contract sales increased by 6.4% and by 5.1% on a like-for-like basis

Revenue increased in the trade focused areas of general merchanting, plumbing and heating, contracts and Toolstation.

However, the report showed a pre-tax loss of £112 million, compared with a profit of £183 million the first half of last year – due to a £246 million write-off of goodwill in Wickes.

Chief Executive Officer John Carter said: “Our trade focused businesses exited the period with encouraging momentum and, supported by a continued focus on cost, they remain on track to deliver modest profit growth for the full year.”

He cited a challenging UK DIY market due to consumer spending trends and competition, along with the bad weather at the start of the year, as the reasons for the drop in sales and profitability in Wickes.

Read the full report here.

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