REG-Travis Perkins PLC : Q1 2016 Trading Update <Origin Href="QuoteRef">TPK.L</Origin>

Travis PerkinsAnnouncement

20/04/2016 07:05

20 April 2016 
 
 Travis Perkins plc 
 
 First quarter 2016 trading update - encouraging sales growth in all divisions

 
 Highlights 
 
* Total sales growth of 5.0% and 6.2% on a comparable days basis 
* Like-for-like sales growth of 4.2% 
* Two-year like-for-like sales growth of 9.5% 
* Overall trading in line with expectations 

 
 John Carter, Chief Executive, commented: 
 
 "All of our businesses demonstrated good growth in the first quarter of 2016,
driven by the recovery in the RMI market and by the investments we have made
to improve our customer propositions as part of our five-year plan. 
 
 The modernisation of General Merchanting continued with a clear focus on
driving the maturity of the heavyside range centre network, improving customer
access to broader ranges and better stock availability. The physical aspect of
the restructuring of the Plumbing & Heating division has been successfully
completed; the priority is now to take full advantage of the customer focused
businesses that have been created. Growth in the Contracts division moderated,
against strong comparators in 2015, but there remains significant opportunity
to continue to take further share in these markets. The Consumer division
maintained the strong momentum established in 2015, with excellent
like-for-like growth. 
 
 Our three priorities remain unchanged; the modernisation of Travis Perkins,
the transformation of Wickes, and improving the performance of the
restructured Plumbing & Heating division." 
 
  Q1 2016 sales growth               General Merchanting (1)    Plumbing & Heating (1)    Contracts (1)    Consumer (2)     Group   
  Like-for-like sales                           4.7%                      2.2%                  2.1%            7.3%         4.2%    
  Net new space and acquisitions                1.5%                      0.3%                  3.1%            3.5%         2.0%    
  Interdivision branches rebranded              1.4%                        -                  (2.2)%             -            -     
  Trading day differences                      (1.6)%                    (1.6)%                (1.6)%             -         (1.2)%   
  Total sales                                   6.0%                      0.9%                  1.4%            10.8%        5.0%    
  Two-year like-for-like                       13.0%                     (4.0)%                17.5%            13.7%        9.5%    
 
 Total Group sales grew by 5.0% in the first quarter and 6.2% on a comparable
days basis. Like-for-like sales growth was 4.2%. Price inflation was
negligible, with low inflation on heavyside categories broadly offset by
continued deflation on lightside categories and commodity driven products.
There was a negative impact of (1.2)% on Group sales owing to one fewer
trading days in the period for General Merchanting, Plumbing & Heating and
Contracts. 
 
 In January, 13 Keyline branches were converted to the Travis Perkins brand
where the branch location and local customer base is better suited to the
product and service of a general builders merchant. This switch negatively
impacted total sales in the Contracts division by (2.2)%, with a corresponding
1.4% increase in General Merchanting. The expansion of the branch network
continued, with five additional Benchmarx showrooms and nine Toolstation
stores opened in the first quarter of 2016. 
 
 General Merchanting like-for-like sales grew by 4.7% with particularly
encouraging growth in heavyside categories and timber, supported by the range
centre network, and continued growth in Benchmarx. 
 
 Plumbing & Heating experienced a more settled period of trading in Q1 2016
following the sales disruption caused by the restructuring programme in 2015.
Like-for-like sales growth of 2.2% was a mix of encouraging growth in City
Plumbing and broadly flat sales in PTS. Total sales performance of the
rebranded City Plumbing branches was in line with expectations and gives
confidence in the future progression of the division. 
 
 Like-for-like sales growth in the Contracts division was 2.1%, ahead of the
growth in Q4 2015 and against a very strong 2015 comparator, with two-year
like-for-like growth of 17.5%. Like-for-like growth was balanced across all
businesses in the division. The eight additional CCF branches opened in 2015
added to total sales in the Contracts division, but also diluted like-for-like
sales growth as some existing business migrated to the new depots from
existing sites. 
 
 Positive momentum continued in the Consumer division with like-for-like
growth of 7.3%. Q1 sales growth has been adjusted to compare the first 14
weeks of 2016 against the comparable period, including Easter, in 2015.
Like-for-like sales growth was particularly pleasing given the early timing of
Easter this year. Wickes continued to invest in value, and further improved
ranges and customer service. Good like-for-like sales growth continued in both
Toolstation and Tile Giant as both businesses grew market share. 
 
  Like-for-like Sales by Quarter          Q1 2015    Q2 2015    Q3 2015    Q4 2015    Q1 2016   
  General Merchanting                       8.1%       5.3%       1.7%       1.0%       4.7%    
  Plumbing & Heating                       (6.1)%      1.0%       1.7%      (1.9)%      2.2%    
  Contracts                                15.1%      12.9%       5.5%       1.5%       2.1%    
  Consumer                                  6.0%       6.9%       2.3%       6.1%       7.3%    
  Group like-for-like                       5.1%       6.3%       2.6%       1.4%       4.2%    
  Group two-year     like-for-like     18.4%      14.9%       8.4%       4.9%       9.5%    
 
 The combination of better RMI markets and the changes made in all businesses
over the past two years have delivered encouraging sales growth across all
divisions during the quarter. The investments made should continue to underpin
outperformance of the market and drive market share gains, supporting the
Group's ambition to grow earnings at around 10% in the year ahead and drive
sustainable improvements in returns in the medium term. 
 
 Enquiries 
 
 Investor / analyst enquiries 
 
 Graeme Barnes  | +44 7469 401 819  |  graeme.barnes@travisperkins.co.uk 
 
 Matt Johnson  | +44 7584 491 284  |  matt.johnson@travisperkins.co.uk 
 
 Media enquiries 
 
 David Allchurch   |   Tulchan Communications   |   +44 207 353 4200 
 
 Footnotes 
 
1Like-for-like sales growth for the three month period ended 31 March 2016
compared to the three month period ended 31 March 2015 adjusted for the impact
of one extra trading day in the 2015 period. Total sales growth for the three
month period ended 31 March 2016 compared to the three month period ended 31
March 2015 not adjusted for the impact of extra trading days in the 2016
period.2Like-for-like and total sales growth for the 14 week period ended 2
April 2016 compared to the 14 week period ended 4 April 2015.
 

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 The issuer of this announcement warrants that they are solely responsible for
the content, accuracy and originality of the information contained therein. 
 Source: Travis Perkins PLC via Globenewswire 
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