Keeping and eye on the market.
Market recovery to be short-lived, warns TP
Published: 22 May, 2009
NORTHAMPTON: The building products sector is not likely to recover before 2011, said Geoff Cooper, Travis Perkins’ chief executive.
He warned that the market will not reach its lowest point until the middle of 2009.
In announcing plans to raise a net £300m from shareholders, to pay down net debt earlier this month, he also stated that recent signs of life in the construction market could be short-lived.
"We're in a brief period when trading is good and there are bargains around. We don't see that lasting," he said, adding that the bottom of the market was further down than expected.
Travis Perkins, the owner of Wickes, is the last of the big UK builders' merchants to launch a capital raising.
Wolseley and SIG announced a combined £1.3bn of new funding in March, while St Gobain, the French materials group that owns Jewson, held a 1.5bn euro (£1.3bn) cash call in February. Only BSS, the smallest of the listed groups, has avoided going to the markets.