Travis Perkins has confirmed it plans to demerge DIY chain Wickes, and has also announced the sale of its Plumbing and Heating division is “well underway”.
In the Group’s latest financial report, Travis Perkins reported:
● Continuing Group revenue increased by 6.9%, and by 8.0% on a like-for-like basis, primarily driven by volume growth
● Continuing Group adjusted operating profit increased by 14.7% to £195 million
● Strong performance across the Group - positive trading in Merchanting demonstrating share gains, a strong recovery in Wickes and continued excellent growth in Toolstation.
With regards to its strategic progress, Travis Perkins said its merchant businesses was benefitting from simplification and more empowered branch managers, the process to sell the Plumbing and Heating division is ongoing, and the decision to demerge Wickes reflects the Group’s focus on advantaged trade businesses and the simplification of the Group.
John Carter, Chief Executive Officer, said: “I am delighted with the progress the Group has made in executing the strategy set out at the capital markets event in December 2018; to focus on our advantaged trade businesses and to simplify the Group. The P&H sales process is well underway, and we are today announcing our intention to demerge Wickes as a separate business.
“This strategic progress has been underpinned by a strong trading period in the first half of 2019 albeit against softer trading conditions in H1 2018. Our trade merchanting businesses have outperformed their markets, through continued focus on delivering excellent customer service, and benefitting from the leaner, lower cost organisation now in place.
“Toolstation continues to deliver excellent growth through proposition improvements and network expansion. Wickes has delivered a strong turnaround in volume and profit performance, with gains in both core DIY and through the Kitchen & Bathroom showroom.
He concluded: “Despite a cautious outlook for the near-term, the Group remains confident in making progress across the year as a whole.”