UK DIY News
Travis Perkins PLC: Business 'Recovering Well'
In advance of the announcement of interim results on 08 September, today Travis Perkins sets out a trading update covering sales figures by quarter for the first half of 2020.
Nick Roberts, CEO, commented:
"Since the trading update on 15 June, the business has continued to recover well with good demand from RMI and infrastructure markets offsetting ongoing challenges in the new build and commercial construction sectors.
We remain cautious as to the near-term headwinds facing our business and the wider economy, nevertheless the decisive actions we have taken to manage our cost base mean that we are well placed to continue to service our customers, support our colleagues and generate value for our shareholders."
Trading performance
Overall, Group revenue for the first six months of 2020 was £2,780m, down 20% on the same period in 2019 (£3,484m) due to the significant impact of the COVID-19 pandemic and resulting lockdown.
Quarterly sales by segment
H1 2020 | Merchanting | Toolstation | Retail | P&H | Group |
Like-for-like sales | (25.8)% | 12.9% | (8.2)% | (22.8)% | (19.3)% |
Net new space and acquisitions | (0.7)% | 23.6% | (0.8)% | (11.1)% | (1.5)% |
Trading days | 0.6% | 0.6% | 0.5% | 0.6% | 0.6% |
Total sales growth | (25.9)% | 37.1% | (8.5)% | (33.3)% | (20.2)% |
Q2 2020 | Merchanting | Toolstation | Retail | P&H | Group |
Like-for-like sales | (42.8)% | 16.5% | (19.8)% | (48.4)% | (34.8)% |
Net new space and acquisitions | (0.5)% | 26.0% | (0.5)% | (8.4)% | (0.9)% |
Trading days | - | - | - | - | - |
Total sales growth | (43.3)% | 42.5% | (20.3)% | (56.8)% | (35.7)% |
| Merchanting | Toolstation | Retail | P&H | Group |
Q1 LFL Sales Growth | (8.7)% | 9.1% | 4.5% | (1.9)% | (3.8)% |
Q2 LFL Sales Growth | (42.8)% | 16.5% | (19.8)% | (48.4)% | (34.8)% |
Q2 like-for-like sales progression by month
| Merchanting | Toolstation | Retail | P&H | Group |
April | (73.1%) | (1.9%) | (53.1%) | (69.1%) | (63.6%) |
May | (37.4%) | 23.8% | (32.1%) | (53.0%) | (34.6%) |
June | (17.6%) | 27.6% | 21.7% | (23.4%) | (6.7%) |
Q2 | (42.8%) | 16.5% | (19.8%) | (48.4%) | (34.8%) |
Since the most recent update in mid-June, the Merchanting businesses have continued to recover well with the improvement in RMI markets and infrastructure spending proving to be more robust than the new housebuilding and commercial construction markets. Plumbing & Heating markets are also recovering more gradually as projects are predominantly carried out indoors.
Toolstation and Wickes continue to benefit from strong DIY sales delivered through market-leading multi channel capability. Overall, Wickes achieved strong sales growth in June following the re-opening of its stores to customers in late May, with significant growth in core DIY categories more than offsetting the slower recovery in Kitchen & Bathroom installations.
Despite the closure of 165 branches in June, representing around 8% of the Group's overall estate, the Group has continued to experience an improving trend on total sales volumes so far in July, with the Group's total sales run rate now close to prior year.
At 30 June 2020, the Group had £455m of cash on deposit giving a strong overall liquidity headroom position of £855m.
Source : Travis Perkins PLC
Image : Jevanto Productions - Shutterstock.com
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