REPORTING ITS HALF year results for the six months ending 30 June 2021, Travis Perkins plc shows a 44.1% surge in revenue.
The robust revenue performance was driven by strong operational delivery and broad-based, RMI led recovery and was 14.5% ahead of 2019.
The adjusted operating profit of £164m (2020: £17m) results from higher sales volumes of high margin products, the company says, despite a challenging period of inflation and materials shortages.
The strong revenue and operating profits in Merchanting follows action to refocus the business. Travis Perkins demerged from Wickes earlier in the year and sold its Plumbing & Heating business to H.I.G. Capital for £325m, which is expected to complete in the autumn. Meanwhile, Toolstation continues to gain market share and its additional stores rollout is on track in both UK and Europe.
Nick Roberts, Chief Executive Officer, said: “I am delighted with our performance during the first half of 2021. To have executed our planned strategic portfolio actions whilst delivering an excellent trading performance in ever changing market conditions is testament to the hard work and capability of our colleagues across the Group.
“I am particularly pleased with the agility that our teams have shown in responding to rapidly evolving market dynamics whilst always maintaining their focus on customer, colleague and supplier safety.
“This has been particularly noticeable in the Travis Perkins General Merchant where decisive actions taken during the previous two years have enabled us to respond rapidly to customer needs at a local level. Toolstation UK, meanwhile, is on course to deliver another excellent year of growth and our European rollout continues to gather pace.
“Our businesses have continued to play a critical role in the construction sector’s ongoing recovery and, while some uncertainty still remains, the end markets for our trade-focused businesses remain robust.
“As a result, I am cautiously optimistic around the outlook for the business and confident in our ability to make further progress in the second half of the year.”
Travis Perkins Profits
Travis Perkins expects at least £310m of adjusted operating profit for the business for the full year 2021, reflecting higher property profits of around £30m.
The company says it is making continued progress on setting industry leading sustainability targets consistent with the 1.5 degree pathway of the 2016 Paris Agreement.
There will be an investor update on 29 September. An interim dividend of 12.0 pence per share as a special return of capital from the Plumbing & Heating sale proceeds will be paid to shareholders after the sale completes.