Travis Perkins trading ahead of expectation
Published: 30 September, 2009
NORTHAMPTON: Travis Perkins reported group turnover down 11% with no recovery in sight, in an interim statement for the third quarter ending September released today.
Turnover in the merchanting division was down 15.6% for the first nine months of 2009. Like-for-like sales per trading day for the third quarter are down 11.9%, an improvement on sales for the nine months ending September, down by 16.3%.
Geoff Cooper, chief executive, said: "These sales trends mean that the group trading for the last three months is ahead of our expectations."
But the outlook for 2010 remains unchanged from that stated in the June interim results and "given the current uncertainty over the course of this current recession, our view of the current market consensus for 2010 also remains unchanged." Mr Cooper said.
Sales volumes relative to peak levels in early 2008 have yet to show signs of sustained improvement and pricing pressure remains with the rate of sales price inflation continuing to decline, the company said.
Total turnover in the general merchanting business was down by 15.9% with like-for-like turnover per trading day down by 16.8%. For this period specialist merchanting business total turnover was down by 15.0% and like-for-like turnover per trading day down by 15.4%.
In Wickes, total turnover for the 39-week trading period to 26 September was up 0.7%. For this period like-for-like sales per trading day were up by 0.7%, with core products down by 3.0% but showroom sales up by 20.8%. However, for the last thirteen weeks the total like-for-like turnover per day was up by 7.8%.
"Overall the investment in increased awareness of our improved kitchen and bathroom ranges continues to be successful. With our continuing focus on cost control and cash generation, net debt has continued to reduce in the third quarter from £527m at 30 June 2009," Mr Cooper said.