Toolstation Reports 38.7% Rise In Half-Year Revenue

Travis Perkins plc has published half year results for the six months ended 30 June 2021, advising of excellent operational performance and the completion of portfolio actions. 

For full Group and Merchanting Division results, click here. 

For the full publication, click here.

Toolstation 

*2020 branch network figures for comparison are taken at 31 December 2020 

In the first half of the year, Toolstation has again demonstrated the strength of its customer proposition by achieving total revenue growth of 38.7% with further market share gains. On the back of this sustained outperformance, the Group continues to drive the branch network expansion in both the UK and Europe.

In the UK, 30 branches were opened in the first half and at least 60 new branches will be added during 2021. Alongside the expansion of network capacity, Toolstation UK continues to maintain its market-leading value proposition which has been enhanced by the introduction of trade credit. Initial signs are very encouraging with the average basket size of credit sales more than 50% higher than those of cash sales and the service achieving a net promoter score of 75.

The range of products available online and through the catalogue was extended by a further c.1,800 products, with added ranges primarily being trade-focused brands. Following the addition of Hawksmoor landscaping products, Toolstation now also offers six own exclusive brands.

The operating margin of Toolstation UK was in line with Management expectations in H1 2021 at 5.8%, reflecting the significant investment in the network in the past 12 months.

The European business continues to make good progress with revenue increasing by 52% in the first half. In Benelux, where sales were up 50%, 7 more shops were opened and the business in the Netherlands is scaling up well with losses narrowing. The Belgian rollout is still in the early stages but remains very encouraging.

Customer feedback continues to be strongly positive with Toolstation Netherlands achieving a Trustpilot rating of 4.4 (out of 5.0) equivalent to a rating of "Excellent". The "Click & Collect in 10 minutes" offer remains well ahead of the competition in terms of speed of service.

In France, sales grew by 74% with 8 new shops opened, taking the total to 27. The new c. 100,000 square foot distribution centre just outside Lyon is now fully operational which will facilitate the continued expansion of Toolstation France.

Toolstation Europe overall made a loss of £(10)m in H1, due primarily to the early stage investment in France. This level of loss is expected to continue through H2 as the rollout programme, with 40 new shops planned for 2021, remains on track.

Nick Roberts, Chief Executive Officer, commented:

"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. We look forward to updating shareholders on our future plans in September." 

Source : Travis Perkins PLC

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