Travis Perkins reassures on profits despite rising costs and market volatility

Travis Perkins, the UK's biggest supplier of building materials, has reassured investors that it is on track to meet City forecasts as it posted an uptick in sales despite a "challenging" backdrop.
The FTSE 250 company, which was demoted from Britain's blue-chip index in December, recorded a 3.5pc rise in sales for the three months to the end of September. Like-for-like sales grew by 4.1pc during the period, helped by the return of inflation, which pushed prices higher.
Travis Perkins said that inflation had increased to 3.9pc during the quarter due to the weaker pound since the EU referendum last June, and recent increases in the cost of timber, copper and some specialist insulation materials. 
Travis Perkins
"Trading conditions in our markets continue to be mixed, with consumer discretionary spending under pressure from rising inflation and on-going uncertainty in the UK economy," said John Carter, chief executive.
Like-for-like sales in the group's consumer division, which includes the Wickes DIY chain, slowed to 2.4pc from 4.7pc at the half year, which Travis Perkins said reflected "very strong comparatives" with the previous year and an "increasingly difficult market environment". 
Travis Perkins reassures on profits despite rising costs and market volatility

Construction orders dipped last month
Despite shares in Travis Perkins lifting by 34p, or 2.3pc to ?15.06, they are yet to recover fully from the 40pc nosedive in the days following the Brexit vote, which dragged the company's share price from ?19.00 to ?13.58.
Uncertainty about consumer spending and the housing market continues to weigh on the business. Earlier this month IHS Markit's purchasing managers' index showed that the construction sector unexpectedly contracted for the first time in over a year as economic and political uncertainty affected orders.
"The group remains cautious on the market outlook and continues to carefully manage its underlying cost base", said Mr Carter. "Despite these headwinds the group remains on track to achieve full-year expectations."
See also:
Leave a comment
  • Latest
  • Read
  • Commented
Calendar Content
«    Апрель 2021    »