Challenging year for Travis Perkins as consumer confidence falls

Earlier today Travis Perkins announced their full year results for the 12 months ending 31st December 2017, including a detailed statement of overall group performance and their individual divisions, including the Consumer Division consisting of Wickes, Toolstation and Tile Giant.

Read - Wickes hit by tough second half of 2017.

Read - Toolstation sales exceed £300m. 

Here's the overall Group highlights:-

• Revenue growth of 3.5% in 2017, with like-for-like growth of 3.3%
• Adjusted operating profit of £380m following investments made to improve customer propositions
• Free cash flow generation of £407m, with strong cash conversion of 107%
• Net debt reduced by £36m to £342m
• Full-year total dividend of 46.0p, an increase of 2.2% reflecting strong cash performance
• Encouraging early signs from the Plumbing & Heating transformation plan announced in August 2017. As previously disclosed, an exceptional charge of £40.9m has been recognised in connection with the plan.

Download the full year results presentation here.

John Carter - Chief Executive Officer said:

"2017 was a challenging year for the Group, with continuing uncertainty in our end-markets, and declining consumer confidence throughout the year. The main focus for our businesses has been to recover the significant cost price inflation encountered and on the whole, this has been achieved successfully. 

Despite the challenging environment, we have continued to make disciplined investments in our customer proposition for the long term. Both the General Merchanting and Consumer divisions were held back by this investment in a higher cost base which ran ahead of volume growth. The Contracts division delivered another excellent performance, with strong revenue growth generating good operating leverage.

Progress in Plumbing & Heating following the announcement of the transformation plan has been swift and very encouraging. The business has been simplified under a single branch network, reducing costs and improving the proposition which has driven higher revenues and a return to profit growth in the second half of the year.

In 2018, we anticipate that the mixed market backdrop will continue. As a result, we will be focusing capital investment behind our key priorities, and slowing investments elsewhere. The Group will focus heavily on maintaining tight control of the cost base and expects 2018 performance to be similar to 2017. 

The long-term prospects for our businesses remain favourable, and the investments we have made in recent years give us a strong and sustainable competitive position from which to grow."

Download the full year results statement here.

Source: Insight DIY Team & TP Results Statement.

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.