REG-Travis Perkins Travis Perkins plc Q3 2022 trading update

Travis PerkinsAnnouncement

20/10/2022 07:15

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   Travis Perkins (TPK)
   Travis Perkins plc Q3 2022 trading update

   20-Oct-2022 / 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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                                20 October 2022

    

      Travis Perkins plc, a leading partner to the construction industry,
   announces its Q3 2022 trading update for the three months to 30 September
                                      2022

    

   Business Performance

    

   The Group delivered  a resilient  third quarter  trading performance  with
   total sales growth of 10.7%* and like-for-like sales growth of 7.4%.

    

   The  Merchanting  businesses   continue  to   outperform  their   markets,
   delivering total sales growth of 11.5%* with trading performance remaining
   consistent throughout the quarter.   Travis Perkins General Merchant,  the
   UK’s largest distributor of building materials, saw some slowing of demand
   through the period in the  smaller trade customer segment although  demand
   from  larger  repair  and  maintenance  contractors  held  up  well.   The
   Specialist merchants  (BSS, CCF,  Keyline, TF  Solutions and  Staircraft),
   which represent around 40% of the Merchant segment by revenue,  benefitted
   from their  exposure to  predominantly  larger subcontractors  across  new
   build commercial and  housing, industrial  maintenance and  infrastructure
   projects to deliver another robust performance during the quarter.

    

   Toolstation, the  Group’s supplier  of  tools, accessories  and  lightside
   building products, returned  to growth with  total sales up  by 6.1%*  and
   like-for-like  sales  up  0.2%  year-on-year  with  the  trend   improving
   throughout the quarter supported by a positive response from customers  to
   the new  catalogue  in  September.  The  European  business  continues  to
   progress well, seeing  total sales growth*  of 23.3% in  the quarter,  and
   Toolstation remains on track to roll  out around 80 new branches in  2022,
   split equally across the UK and Europe.

    

   Outlook

    

   Given the challenging market  backdrop, the Group  remains focused on  the
   recovery of  elevated levels  of  input cost  inflation and  continues  to
   tightly manage the operating cost base.

    

   Whilst  forward   visibility   is  limited,   reflecting   the   uncertain
   macroeconomic situation,  the  Group  expects  to  build  on  the  current
   resilient performance and deliver a full year operating profit around  the
   middle of  the  current range  of  market expectations**.  This  is  after
   absorbing  the  impact  of  the  unforeseen  additional  bank  holiday  in
   September.

    

   * Trading day adjusted

   **The range  of  market  expectations is  derived  from  company  compiled
   analyst consensus. This stood at £304m to £340m at time of publication and
   can be reviewed via:

   https://www.travisperkinsplc.co.uk/investors/analyst-consensus

    

   Nick Roberts, Chief Executive, commented:

   “The Group has delivered a solid performance during the third quarter with
   the Merchanting  businesses  again  outperforming  their  markets  and  an
   improved performance  in  Toolstation. We  continue  to benefit  from  our
   diverse end market  exposure from  small independent  builders through  to
   large contractors delivering national infrastructure projects.   

    

   During the second  half of  the year  we have  seen growing  macroeconomic
   uncertainty.  We  are  focused  on  maintaining  cost  discipline  in  our
   businesses and the actions  taken to simplify  our operating structure  in
   recent years  have created  the flexibility  to adapt  to changing  market
   conditions.

    

   All  of  our  businesses  see  opportunities  to  further  develop   their
   propositions to  meet our  different  customers’ needs,  as they  seek  to
   navigate an increasingly complex construction landscape, characterised  by
   new environmental  and  safety legislation  and  a commitment  to  deliver
   against net  zero targets.  We remain  confident that  our  market-leading
   businesses, backed by focused capital  allocation, a strong balance  sheet
   and significant strategic  growth opportunities, leave  us well placed  to
   outperform in our markets.”

    

   Q3 2022                      Merchanting Toolstation Group
   Volume*                        (6.0)%      (3.4)%    (5.6)%
   Price and mix                   17.5%       9.5%     16.3%
   Total revenue growth*           11.5%       6.1%     10.7%
                                                           
   Like-for-like revenue growth    8.7%        0.2%      7.4%

    

    

    

   YTD 2022                     Merchanting Toolstation Group
   Volume*                        (2.5)%      (10.5)%   (3.9)%
   Price and mix                   15.8%       9.3%     14.8%
   Total revenue growth*           13.3%      (1.2)%    10.9%
                                                           
   Like-for-like revenue growth    10.7%      (7.1)%     7.8%

    

   * Trading day adjusted

    

   The impact of fewer trading days, both in the quarter and year-to-date, is
   approximately 1% with fewer  trading days in 2022  due to additional  bank
   holidays.

    

   Travis Perkins Management  team will be  hosting a call  for analysts  and
   investors at 8.30am BST. Details of  the call are below with  participants
   requested to join 10 minutes before the scheduled start time;

    

   United Kingdom: 0808 109 0700

   Overseas: +44 (0) 33 0551 0200

   Please quote Travis Perkins when prompted by the operator

    

   Enquiries:

   Travis Perkins                     FGS Global
   Matt Worster                       Faeth Birch / Jenny Davey / James Gray
   +44 (0) 7990 088548                +44 (0) 207 251 3801
   matt.worster@travisperkins.co.uk   TravisPerkins@fgsglobal.com

    

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   ISIN:           GB00BK9RKT01
   Category Code:  QRT
   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.:   195559
   EQS News ID:    1467527


    
   End of Announcement EQS News Service

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