Travis Perkins benefits from strong third quarter performance at Wickes
Travis Perkins has reported that like-for-like sales at its Wickes DIY chain climbed by 18.3% in its third quarter.
Trading was also strong at its Toolstation business where like-for-like sales rose by 25.5%.
Across the wider group, which also includes merchanting and plumbing and heating divisions, like-for-like sales increased by 3.9%. On a total basis, revenue fell by 3.4%.
Travis Perkins said it benefited from a strong DIY market in the period, although its merchanting and plumbing and heating businesses were impacted by a decline in housebuilding and commercial construction levels compared to 2019.
Nick Roberts, Travis Perkins chief executive, said: “We have reported a positive overall like-for-like sales performance in the quarter as our markets have continued to recover following the impact of the national lockdown earlier this year. This has been driven by a strong recovery in demand across domestic RMI markets, benefitting the Travis Perkins, City Plumbing, Wickes and Toolstation businesses who serve these markets. Currently this domestic RMI trend remains strong.
“Whilst local trade activity has recovered well, our trade businesses continue to experience a lag in recovery from larger housebuilding and construction projects. However, there are signs of increasing workflow across these sectors as underlying demand strengthens as businesses have adapted to new and safe ways of working that enable them to keep sites open during periods of local lockdown.”
During the quarter, Travis Perkins completed the disposal of its Tile Giant business.
Looking ahead, the group said it expects its EBITA performance for 2020 to be in the upper half of the current range of analysts’ expectations of £222 million to £261 million. However, this assumes that current volume trends continue and that any further lockdown measures do not have a significant impact on trade.
Roberts added: “Our excellent cash generation this year has built a strong liquidity position, and combined with the decisive actions taken in June to realign our cost base to the new trading environment we are confident in both the group’s ability to navigate the near-term uncertainty, as well as our position for the long term as we build towards becoming the leading partner for the construction industry.”
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