Travis Perkins boosted by strong full year performance at Wickes
Travis Perkins has reported that full year adjusted operating profit climbed by 22.7% to £77 million at its consumer division which includes Wickes and Toolstation.
Revenue at the division rose by 8.8% to £1.283 billion in the year to 31 December with consistent like-for-like sales growth throughout the year.
Travis Perkins said the division’s strong sales volume increase was driven partly by an improved kitchen and bathroom performance at Wickes. However, the impact of higher volumes on like-for-like sales was tempered as Wickes continued to invest in lowering prices and promotions on key product lines.
The group said Wickes’ transformation programme had been well received by customers despite it being early days. As well as making improvements to value, branded ranges, promotions and customer service, Wickes has also introduced a new website and click and collect capability.
Across the wider Travis Perkins Group, which includes Travis Perkins, City Plumbing, Keyline, Tile Giant and BSS, adjusted profit before tax rose by 12.8% to £362.3 million as revenue increased by 8.4% to £5.6 billion.
John Carter, Travis Perkins chief executive, said: "We have seen encouraging progress in the majority of our businesses during the first year of implementing the group's updated strategy. Our key priorities remain on modernising general merchanting, transforming Wickes and reconfiguring our plumbing and heating businesses to better suit their customers' needs.
"Structural advantages in sourcing and supply chain allied to superior ranges, availability and value propositions should enable the group to sustain market outperformance and give us confidence in the group's prospects for the foreseeable future."
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