Travis Perkins raises full year forecast as revenue soars
Home improvement firm Travis Perkins raised its 2021 forecast today following a strong first-half, introducing a special dividend of 35 pence per share.
Revenue for the business rose to £2.29bn in the six months ending June 2021, up from £1.66bn in the same period last year.
The Northampton-based company increased their full year expectations to £310m of adjusted operating profit for continuing businesses, following property profits and growth in revenue for the merchanting division and Toolstation.
The period saw the completion of the firm’s demerger with Wickes and the sale of Plumbing & Heating business to HIG Capital.
Boss Nick Roberts said, “to have executed our planned strategic portfolio actions whilst delivering an excellent trading performance in ever changing market conditions is testament to the hard work and capability of our colleagues across the Group.”
He added the agility teams have shown is also a key reason the company has succeeded in maintaining focus on ‘customer, colleague, and supplier safety’ during the pandemic.
The company’s merchanting business involves the sale of raw materials such as wood, sand and more. As a result of the pandemic this sector saw inflation rates rise and material shortages. Despite the industry-wide challenges, merchanting like-for-like revenue was up 47.3 per cent with adjusted operating profits at £156m in the first half year for Travis Perkins.
Toolstation, bought by Travis Perkins in 2014, saw revenue grow 38.7 per cent, totalling £394m in profit due to the rollout of tools in both the UK and Europe.
Listed on the London Stock Exchange, shares for the company were down 1.37 per cent on Tuesday morning, despite its ‘strong performance.’
Interim dividend was restored to 12 pence per share in the half year report.
Britain’s construction industry documented its fastest growth 24 years in June as demand in new homes and commercial property rose. The industry also witnessed record rises in the cost of raw materials.
“Our businesses have continued to play a critical role in the construction sector’s ongoing recovery and, while some uncertainty still remains, the end markets for our trade-focused businesses remain robust,” Roberts said.