Travis Perkins reports Group revenue increase of 1.4% for 2012

Travis Perkins, Britain's biggest supplier of building materials, met forecasts with a rise in 2012 earnings and said there were signs growth would return to its markets later this year.

The company reported a sustained operating margin and strong cash generation, with a full year dividend up 25%.

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Results For The Year Ended 31st December 2012:

Financial Highlights:

- Group revenue up 1.4% at £4,845m, down 1.4% on a like-for-like basis
- Adjusted operating profit, up 4.3% to £327m, adjusted PBT up 1.1% to £300m, and adjusted EPS up 2.1% to 95.1p
- Reported PBT after exceptional items (note 6 and note 9) up 16.2% to £313m
- Sustained adjusted operating margin to 6.7%
- Free cash flow generated of £242m
- Underlying £155m debt reduction, net debt down to £452m, with lease adjusted net debt to EBITDAR at 3.2x (2011: 3.4x) (note 17)
- Full year dividend of 25p per share up 25%, with adjusted dividend cover now 3.8 times

Operating Highlights:

- Increased BSS synergy target achieved and integration programme near completion
- Toolstation network expansion to 123 branches and Toolstation Europe trial launched in the Netherlands
- Gross margin before synergies increased by 0.2%
- Tight cost control, like-for-like overheads down 2.3%
- Solfex systems acquired on 30 January 2013 for initial consideration of £8m

"Whilst there are indications, for the first time in a while, that growth will return to our markets later this year, we anticipate volatile conditions will persist in the short term, further troubling weaker operators," said Chief Executive Geoff Cooper.

Source : Travis Perkins PLC
www.travisperkinsplc.co.uk