Travis Perkins Reports 20% Drop in Sales on Last Year

IN A TRADING UPDATE issued today, Travis Perkins reports that sales for the first half of 2020 are a fifth less than the same period last year.

Overall, Group revenue for the first six months of 2020 was £2,780m, down 20% on the same period in 2019 (£3,484m) due to the significant impact of the COVID-19 pandemic and resulting lockdown.

RMI and Infrastructure Robust

The company says that since mid-June, the merchanting businesses have continued to recover well with improvement in RMI markets and infrastructure spending more robust than the new housebuilding and commercial construction markets.

Plumbing & Heating markets are recovering more gradually as projects are predominantly carried out indoors.

Toolstation and Wickes benefit from strong DIY sales delivered online. Wickes achieved strong sales growth in June following the re-opening of its stores to customers in late May, with significant growth in core DIY categories. These more than offset the slower recovery in kitchen and bathroom installations.

Nick Roberts, CEO, said, “Since the trading update on 15 June, the business has continued to recover well with good demand from RMI and infrastructure markets offsetting ongoing challenges in the new build and commercial construction sectors.

“We remain cautious as to the near-term headwinds facing our business and the wider economy.”

Despite the closure of 165 branches in June, representing around 8% of the Group’s estate, the company has continued to experience a rise in total sales volumes so far in July bringing them closer to last year’s rate.

At 30 June 2020, the Group had £455m of cash on deposit giving an overall liquidity headroom position of £855m.