Travis Perkins' Consumer division (inc. Wickes) reports strong growth

Travis Perkins has published unaudited results for the full year ended 31st December 2016.

The Consumer division, of which Wickes is a part, performed as follows:  The continued roll out of new Wickes store formats is offering customers a simpler shopping experience with access to improved ranges. The new format is also enabling Wickes‟ trade customers a faster way to buy their products and get back to work. A further 46 new Wickes store formats were opened in 2016, bringing the total number of new format stores to 62. The new formats provide more inspiration for DIY customers through much improved kitchen and bathroom displays and design centres. The programme to roll out further new formats will continue in 2017.

 The Wickes distribution centre network was rationalised, reducing to a single centre in Northampton which now serves all store and direct to customer deliveries.

 Wickes continued to invest in their value propositions in order to maintain market leading
prices and drive continued growth in market share. The business undertook further range review activity in 2016 in tandem with the further development of its new store format with particular success in bricks and blocks and garden maintenance.

 The online proposition in Wickes continues to evolve, with nationwide click & collect
within 1 hour, one hour time slots for home deliveries and same day delivery on up to 7,000 products. Initial customer feedback has been very positive, and Wickes has achieved over £100m of online sales in 2016 for the first time.

 Expansion of the Toolstation network continued in 2016, with a further 36 stores opened
in the UK, and seven shops opened in the Netherlands. Online only ranges were introduced for the first time with over 1,000 products available to customers along with improved marketing campaigns. Click and Collect order availability was improved to within 20 minutes with many orders available almost instantaneously. Further online range extension is planned in 2017 and the store opening programme will accelerate further in the Netherlands.

Financial performance
 Adjusted operating profits increased by £6m to £101m (2015: £95m). No property profits
were recognised in 2016 (2015: £2m).
 Adjusted operating profits, excluding property profits, increased by 8.6%.
 Adjusted operating margin, excluding property profits, was unchanged with further
investment in value for customers offset by operating leverage and further
improvements in operating efficiency.
 Lease Adjusted Return on Capital for 2016 improved to 8% (2015 restated: 7%). The
division continued to increase returns through highly accretive investments in store
openings and reformats together with improvements to customer value and range.
 The division incurred £14m of exceptional charges in the year within the £57m Group
charge. These costs included £9m of costs in relation to the reorganisation of the
distribution business and £4m of other associated costs.
 Following a review of the cash flow projections of Tile Giant, and in light of the
continuing difficult market conditions, an impairment charge of £19m has been
recognised against goodwill, and a £3m impairment charge has been taken against the
assets of bathrooms.com.

Learn more about the Travis Perkins Group performance here and view the full results publication here.

Source : Travis Perkins PLC 
www.travisperkinsplc.co.uk 

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