Travis Perkins releases excellent half year results

Highlights from the half year results

• Like-for-like revenue increased by 10.2% with growth in all divisions
• Adjusted operating profit up 18.8% to £175m with adjusted operating margin up 0.4% to 6.4%
• Adjusted EPS improved by 21.6% to 53.4p
• Interim dividend increased by 22.5% to 12.25p
• Lease adjusted return on capital employed improved by 1ppt to 10.5%
• Strong free cash flow with cash generated from operations up £56m to £222m
• Net debt reduced by £51m to £297m
• Capital expenditure up 24% at £65m in the half
• New fascias opened in every division, totalling 55 for the Group

John Carter, Chief Executive, commented:

“A combination of improving market conditions, increasing customer confidence and the successful introduction of a number of self-help initiatives has driven a strong first half performance.

Travis Perkins’ success is built on our 23,500 team members who work hard every day to deliver great customer service.

We have outperformed our markets and see good growth opportunities for stepping up our investment in the customer proposition, leveraging our superior scale, supply chain capabilities and for network expansion and format optimisation. These exciting organic growth opportunities along with a clear focus on return on capital should continue to create substantial shareholder value.

Trading is consistent with our expectation and with lead indicators in our different markets encouraging, the Group is expected to show continued solid growth for the remainder of the year.

It is early days in executing the Group’s strategy, but all divisional teams have made good progress towards implementing those plans set out in December 2013. We have managed the business carefully to increase returns on capital whilst at the same time making strategic investments that should improve future performance.”