Travis Perkins: Interim Management Statement

Travis Perkins has issued the following IMS for Q3 (end September 2012) and for the year-to-date.

As expected, total group LFL sales per working day held up relatively well compared to Q2. This occurred despite continuing disruption from poor weather and the Olympics, and we saw a noticeable improvement in sales trends once these disruptions faded towards the end of the quarter, and as colder weather boosted plumbing and heating activity.

Quarter Ended 30 September 2012 (One less trading day in 2012):

Total Sales / LFL Sales Per Trading Day

General Merchanting: (2.3)% / (1.6)%
Specialist Merchanting: 0.6% / 1.3%
Plumbing & Heating: (11.6)% / (4.7)%
Consumer (see 1 & 2): 12.0% / (7.0)%

Total: (2.4)% / (3.5)%

1) 13 weeks ended 29 September. Total sales include Toolstation, which was consolidated from 3 January 2012.
2) On a proforma basis (i.e. including Toolstation in 2011 data) total sales would reduce to a gain of 1.6% and LFL sales would improve to a decrease of 4.5%.

9 Months Ended 30 September 2012 - (Identical number of trading days)

Total Sales / LFL Sales Per Trading Day

General Merchanting: 1.1% / 0.2%
Specialist Merchanting: 2.1% / 0.7%
Plumbing & Heating: (7.3)% / (1.3)%
Consumer (see 1 & 2): 12.9% / (6.2)%

Total: 0.7% / (1.7)%

1) 39 weeks ended 29 September. Total sales include Toolstation, which was consolidated from 3 January 2012.
2) On a proforma basis (which includes Toolstation in 2011) total sales would reduce to a gain of 3.2% and LFL sales would improve to a reduction of 3.7%.

The continuing low inflation has impacted our opportunities to drive stock investment gains. This, in addition to competitive market conditions in the three Merchanting divisions, has seen our gross margins come under pressure during the third quarter. In response we have intensified our tight management of costs.

Our debt levels have continued to fall since the half year. The sale of our St Pancras site was completed in July and the sale proceeds have now been received. Our focus on working capital reductions and capital expenditure control means we remain on course to achieve our debt target of £450m by the year-end.

There has been no material change to the financial condition of the business, with compensating movements in sales, gross margin and cost trends, and we remain on course to achieve full year published consensus earnings per share of around 95 pence.

Geoff Cooper, Chief Executive, commented:

"Trading improved in September after the uneven and fragile trading conditions experienced so far this year, and our continuing tight management of costs and efficiency gains from self help projects mean we remain on target to meet market expectations."

After 22 years in senior finance roles, including the last 17 years as the Company's Group Financial Director, Paul Hampden Smith has informed the Company of his intention to develop a portfolio career and to step down from his current role and as a director of Travis Perkins. Paul will retire from the board after completion of the annual results exercise next February. He has agreed to continue in our employment for a further 6 months until September 2013, to ensure a smooth and complete handover to his successor. He has given outstanding service to the Company over 20 years and has been part of the management team that has grown the business from turnover of £400 million to £5 billion through organic growth and acquisitions. The board conveys its very best wishes to him for the portfolio career he intends to pursue.

The Company is making good progress in its search for a new Group Finance Director. A further announcement will be made in due course.

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