REG-Travis Perkins Travis Perkins: Q1 2022 Trading Update

Travis PerkinsAnnouncement

29/04/2022 07:15

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   Travis Perkins (TPK)
   Travis Perkins: Q1 2022 Trading Update

   29-Apr-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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   29 April 2022

    

                  Travis Perkins plc - Q1 2022 trading update

                                        

    Encouraging first quarter reflecting the strategic progress of the Group

    

   Business performance

    

   The Group has seen a positive start to the year with total sales* for the
   three months to 31 March 2022 13.6% ahead of prior year.

   In the Merchanting segment, total sales* were up by 17.9% with all
   businesses performing in line with expectations. Pricing accounted for
   approximately two-thirds of the growth with manufacturer increases
   continuing to be passed through in an orderly manner. Customer demand
   remains robust across our end markets with larger customer activity
   underpinned by the backlog of social and economic infrastructure work and
   ongoing requirement for new housing. SME customers continue to see healthy
   order books, including a growing interest in energy efficiency projects.

   As anticipated, Toolstation total sales* were down (6.0)% in the first
   quarter, with like-for-like sales down (11.9)%, reflecting a tough prior
   year comparator and the return of Toolstation's customer mix back to its
   core trade base who continue to appreciate the value and convenience of
   the customer proposition. Management is confident that business drivers
   will normalise into the second half of the year as the comparative period
   passes the lifting of pandemic restrictions.

    

   Supply chain and inflation

    

   The construction supply chain had largely normalised by the end of 2021
   and, although the war in Ukraine and the subsequent impact on the global
   economy may challenge that relative stability, the Group's stock levels
   remain healthy.

   The Group's forecast for materials price inflation, which was originally
   expected to ease into the second half of the year, is now more uncertain
   with pricing likely to form a higher proportion of sales growth across the
   year than previously thought.

   Overall, cost inflation for the Group is expected to remain manageable.

    

   Outlook

    

   Despite the current uncertain macroeconomic and geo-political environment,
   order books remain robust across UK construction. Given the Group's
   resilient end markets and trade focused business model, Management's
   expectations for the full year remain unchanged.

    

    

   Nick Roberts, Chief Executive, commented:

   "The Group has had an encouraging first quarter and, although the wider
   economic backdrop remains uncertain, we are well placed to build on this
   positive start in the coming months.

   The energy efficiency of the UK's built environment remains a key focal
   point for households and politicians alike and the current cost of energy
   is likely to prompt further demand for improvement in both new and
   existing buildings. Allied to the significant pipeline of investment in
   the UK's social and economic infrastructure, we remain confident in the
   structural drivers of demand in our end markets.

   As the UK's largest building materials supplier and a leading partner to
   the construction industry, we are uniquely placed to support the country
   in this drive and are working closely with all key stakeholders, including
   government, housebuilders, tradespeople and developers, to address these
   challenges."

    

   Travis Perkins Management  team will be  hosting a call  for analysts  and
   investors at 8.15am BST. Details of  the call are below with  participants
   requested to join 10 minutes before the scheduled start time;

    

   United Kingdom: 0800 279 6877

   Overseas : +44 (0)330 165 4012

   Confirmation Code: 9976378

    

   * There were the same number of trading days in both Q1 2021 and Q1 2022

    

    

   Enquiries:

   Travis Perkins                     Powerscourt
   Matt Worster                       James White
   +44 (0) 7990 088548                +44 (0) 207 2501446
   matt.worster@travisperkins.co.uk    1 travisperkins@powerscourt-group.com
                                       
                                       
                                       
                                       

    

    

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   ISIN:           GB00BK9RKT01
   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.:   158429
   EQS News ID:    1339073


    
   End of Announcement EQS News Service

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References

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   1. mailto:travisperkins@powerscourt-group.com


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