Travis Perkins consumer division reports strong full year growth
Travis Perkins has increased its full year revenue by 9.5% to £1.518 billion at its consumer division which includes Wickes, Toolstation and Tile Giant. Like-for-like sales in the period rose by 6.4%.
In the year to 31 December, the division’s adjusted operating profit rose by 6.3% to £101 million.
The group said the continued roll out of new Wickes store formats is giving the retailer’s trade customers a faster way to buy their products. Some 46 new Wickes store formats were opened in 2016, bringing the total number of new format stores to 62. The new formats also aim to provide more inspiration for DIY customers through improved kitchen and bathroom displays and design centres. The programme to roll out further new formats will continue in 2017.
Travis Perkins said it is continuing to evolve it’s Wickes online proposition which now offers nationwide click and collect within an hour, one hour time slots for home deliveries and same day delivery on up to 7,000 products.
Expansion of the Toolstation network continued in 2016, with a further 36 stores opened in the UK, and seven shops opened in the Netherlands. Online only ranges were introduced for the first time with over 1,000 products available to customers along with improved marketing campaigns.
Across the wider Travis Perkins group, adjusted operating profits fell by 1% to £409 million after the group was impacted by a weak performance at its plumbing and heating division.
John Carter, chief executive of Travis Perkins, said: "2016 was another solid year for the group, with continued strong performances from the consumer, contracts and general merchanting divisions, which together contributed 90% of group adjusted operating profit.
“It was a much more difficult year for the plumbing and heating division driven by structural challenges for traditional merchant businesses in this segment. Whilst the network restructuring work carried out in 2014 and 2015 created a more focused branch network, further work is required and over the next six months we will be exploring all routes to enhance returns.”
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