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Strong 2014 performance from Travis Perkins

Travis Perkins lorry with door logo

Recovery in the UK construction market has led to a multimillion-pound hike in sales and pre-tax profit at Northampton-headquartered builders' merchant Travis Perkins.

The growth could also lead to a payday for shareholders after the board proposed a 22.6 per cent increase of its full year dividend.

In the year to 31 December 2014, Travis Perkins generated sales of £5.58bn, up from £5.14bn a year earlier. Pre-tax profit after exceptional items of £23.3m also rose to £321.4m from £312.6m in 2013.

While chief executive John Carter said it was still "relatively early" in UK recovery, he added that trends had been consistent.

"Whilst it is still relatively early in the recovery of the UK construction industry, the new housing market, new commercial and industrial markets and the repair, maintenance and improvement market (RMI) have been performing largely as we expected," he said.

"As we expected the key lead indicators have settled into a still positive, but more moderated and consistent trend. This backdrop allied to our "self-help" growth initiatives should support on-going market share gains, medium-term double digit operating profit growth and continuing growth in return on capital."

During the period, the group increased capital investment to £165m from £58m in a bid to continue growth.

Its network also extended to 54 new trading locations and 33 new stores under the Toolstation brand were also launched.

Following the "strong performance", the board of Travis Perkins recommended a full year dividend of 38 pence per share, up from 31 pence in 2013. Is approved, the dividend will be payable on 1 June 2015.

Carter added: "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."

View the full results publication here: http://www.insightdiy.co.uk/articles/travis-perkins-final-results-2014/634.htm

Source : Storm Rannard - Insider Media
www.insidermedia.com/insider/midlands/134711-/

03 March 2015

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