Travis Perkins Trading Update Shows Strong RMI Sales as Housebuilding Subdued

IN A QUARTERLY trading update, Travis Perkins reports total Group sales declined by 3.4% with larger customer activity reduced.

However, strong like for like performance in the three months to 30 September on 2019 came from many of the company’s key brands.

A “strong trend” in domestic RMI and DIY sales (up by 8%) benefited Travis Perkins, City Plumbing, Wickes and Toolstation (up 25%), and P&H (0.4%).

Overall merchant sales were up by 3.1% and retail sales increased by 18.3%.

In contrast, larger customer activity has been slower, the company says, with both new housebuilding and commercial construction sales below 2019, affecting the specialist merchants and parts of the P&H business.

Branch closures

Across the Merchant and P&H segments, whilst the branch closures in June reduced total sales, businesses have migrated a significant proportion of sales to nearby branches.

This has been particularly true for larger customers who already trade with multiple branches and customers of the specialist merchants where a higher proportion of sales are delivered. At a Group level, the retention of sales added around 3% to like-for-like performance.

Outlook

The company view is that significant uncertainty remains from both the pandemic and the ongoing Brexit negotiations, making it hard to forecast performance in the near-term, it says.

The Group reports £580m of cash on deposit and total liquidity of £980m. It completed the sale of Tile Giant on 30 September in efforts to simplify the business and focus on its trade sales.