Travis Perkins H1 revenue rise

Home improvement retailer Travis Perkins plc rreported higher revenues and like-for-like sales for the six months ended June 30. The company stated that it currently expects to report results for the first half of fiscal 2010 ahead of management expectations. The company also revealed its intention to recommence dividend payment.

Group revenue rose 4.7% in the first half, with like-for-like sales rising 3.4%. The UK-based builders' merchant said it had reported a strong rebound in trading in its May interim management statement following a slow start in the first two months of the year. This trend has continued through the remainder of the first half.

The company's Merchanting division reported a 6.1% rise in six-month period revenue, including like-for-like growth of 5.3% from the same period in 2009. While General Merchanting posted a 4.5% increase in like-for-like sales, Specialist Merchanting's like-for-like sales were up 5.8%. The Merchanting's like-for-like turnover was 10.3% ahead in the last two months. The company also stated that the division's gross margins remained slightly lower than last year.

Further, Travis Perkins said that revenue for its Retail Division, on a delivered basis, was up 2.1% for the 26-week period ended June 30. Like-for-like sales dropped 0.4% from the same period in 2009. For the last nine-week period, Retail's like-for-like turnover was up 1.6%.

The company also stated that Wickes, which undertakes general repairs, maintenance, and improvement projects for households, continues to gain market share and maintained gross margins during the period. When Wickes' new strategy in the kitchen and bathroom market begins to mature, the rate of market share gain will begin to abate through 2010, Travis Perkins noted.

Commenting on Travis Perkins' six-month period trading, Geoff Cooper, Chief Executive Officer, stated, "We are pleased with the overall progress the Group has made in the first six months of the year. Current trading continues to be ahead of management expectations and we now have the confidence to contemplate recommencing paying dividends. We expect to give an update on our discussions with The BSS Group shortly."

In addition, the company said that it currently expects to recommence the payment of dividends based on its strong trading performance in the first half, although the payment will initially be in a conservative level of cover. The company estimates to declare an interim dividend of 5 pence per share when it announces interim results for the first half on July 29.

Source : RTT News