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Travis Perkins (TPK)
Travis Perkins plc - Q1 2021 trading update
15-Apr-2021 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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15 April 2021
Travis Perkins plc - Q1 2021 trading update
Encouraging start to the year; Wickes demerger on track for completion on
28th April
Highlights
• Positive start to 2021 driven by strong RMI demand with Group
(excluding Wickes) like-for-like sales growth of 17.4% and 11.8% on a 2
year like-for-like basis
• Good like-for-like growth in Merchanting and P&H, up 15.5% and 11.4%
respectively, underpinned by sales retention from the 2020
restructuring programme
• Continued acceleration of Toolstation growth with like-for-like sales
up 42.0%
• Ongoing strong performance in Wickes with like-for-like sales up 19.7%.
Excellent growth in Core of 38.5% partially offset by DIFM, down
(25.0)% on a like-for-like basis due to showroom closures
• Wickes demerger due to complete with trading in Wickes shares
commencing on 28th April. Travis Perkins share consolidation to be
effective following market close on 28th April, trading in new Travis
Perkins shares commencing on 29th April
Nick Roberts, Chief Executive, commented:
"The Group has enjoyed an encouraging start to the year with robust
like-for-like sales growth across our businesses, underpinned by strong
demand in the RMI market. The Merchanting business has maintained the
momentum seen in the second half of last year while Toolstation continues
to outperform, driven by its convenient and trade focused proposition.
I am also pleased to report that the Wickes demerger process remains on
schedule to be completed at the end of April, leaving the business a
simplified and trade focused group.
We are encouraged by the robustness of the RMI market and the continued
recovery in our other key end markets. However, at this early stage in the
year, our expectations remain unchanged as we continue to make progress on
the delivery of our longer-term strategic plans."
Q1 2021 sales growth Merchanting Toolstation Plumbing & Group (excluding
Heating Wickes)
Like-for-like sales 15.5% 42.0% 11.4% 17.4%
growth
Net space change (8.4)% 8.9% (5.0)% (6.2)%
Business disposals - - (8.4)% (3.0)%
Trading days (1.4)% (1.1)% (1.4)% (1.4)%
Total sales growth 5.7% 49.8% (3.4)% 6.8%
Two-year like-for-like 6.3% 66.8%* 9.1% 11.8%
*Excludes Toolstation Europe
Business performance
Group, excluding Wickes
The momentum in the Group's end markets experienced in the second half of
2020 has continued into the current year. Revenue performance has been
boosted by the retention of sales from the branch closure programme
conducted last summer and the lapping of a weaker prior year comparator
which included the start of the first national lockdown in March 2020,
leading to Group like-for-like sales growth of 17.4%.
Throughout January and February all businesses saw a continuation of the
trends from the last quarter of 2020. During March, however, the Group
experienced a marked step up in activity with pent-up demand and continued
high levels of housing transactions fuelling higher RMI spend. In contrast,
the new build housing and commercial sectors remain subdued although the
businesses with exposure to the "early cycle" trades are seeing the first
signs of improvement.
Like-for-like sales in the Merchanting segment were up by 6.3% on a
two-year basis, supported by the retention of sales from 2020 branch
closures. On a total sales basis, Merchanting sales were down (2.6)% vs Q1
2019 reflecting the overall reduced network capacity.
Toolstation's impressive like-for-like growth continued, driven by its
digitally enabled and convenient sales proposition. The Group remains on
track to open 60 new branches in the UK in 2021, with further encouraging
progress in expanding the European business.
The Plumbing & Heating business continued the positive momentum seen in the
second half of last year with two year like-for-like sales up 9.1%.
Similarly to the Merchanting business, P&H has seen strength in its
smaller, RMI focused customer base with the large contract segment slower
to recover.
The Group is experiencing an increasingly inflationary environment, over
and above that seen in the second half of 2020, with prices on certain raw
material categories, such as timber, copper and steel, rising
significantly. At this stage, however, cost price inflation remains
manageable. Additionally, the Group has seen availability shortages on some
lightside products imported from Asia, as well as some key heavyside
products moving onto allocation, albeit this has not had a material impact
on trading at this stage.
Wickes (13 weeks to 27 March 2021)
Like-for-like sales growth 19.7%
Net space change (0.8)%
Total sales growth 18.9%
Two-year like-for-like 25.6%
Wickes like-for-like sales performance continued to be strong at 19.7% in
Q1, 25.6% ahead on a two year basis. The excellent Core performance seen in
the second half of 2020 has continued into the current year with Q1
like-for-like sales at 38.5%. This performance was delivered across a broad
range of product categories and was driven by Wickes digital capability,
with continued high participation of customer delivery and click and
collect fulfilment.
With DIFM showrooms remaining closed throughout the quarter, which included
the key winter sale period, the recently developed digital DIFM journey
enabled Wickes to maximise the opportunity available in the market. Q1 DIFM
like-for-like sales declined by (25.0)% on a delivered basis, and orders
through the winter sale period were down by around (50)%.
Performance of Core through the Easter trading period remained strong,
benefiting from continued positive engagement in DIY and buoyant local
trade, together with ongoing restrictions in the wider non-essential retail
market, which eased on 12th April.
Enquiries:
Travis Perkins Powerscourt
Matt Worster Justin Griffiths / James White
+44 (0) 7990 088548 +44 (0) 207 2501446
matt.worster@travisperkins.co.uk travisperkins@powerscourt-group.com
Heinrich Richter
+44 (0) 7392 125417
heinrich.richter2@travisperkins.co.uk
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ISIN: GB0007739609
Category Code: QRF
TIDM: TPK
LEI Code: 2138001I27OUBAF22K83
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 99147
EQS News ID: 1184918
End of Announcement EQS News Service
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