REG-Travis Perkins Travis Perkins: Update on trading and Government assistance

Travis PerkinsAnnouncement

16/12/2020 07:05

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   Travis Perkins (TPK)
   Travis Perkins: Update on trading and Government assistance

   16-Dec-2020 / 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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   16 December 2020

   Travis Perkins plc - Update on Trading and Government assistance

   Trading performance

   Sales performance in October and November 2020

                         Merchanting Toolstation     P&H Retail  Group
   LFL                          3.8%       32.4%    1.9%  19.3%   8.6%
   Net openings/closures      (7.4)%        8.6%  (3.8)% (0.7)% (4.7)%
   Disposals*                      -           - (18.8)% (4.9)% (5.4)%
   Trading days               (2.4)%           -  (2.2)%      - (1.8)%
   Total Sales                (6.1)%       41.0% (22.9)%  13.7% (3.3)%

   *Disposals include PF&P wholesale from the P&H segment in January, and Tile
   Giant from the Retail segment in September

   The end  market trends  experienced during  Q3 continued  into October  and
   November while the Group also continued to make good progress on  retaining
   sales from branches closed as part of the restructuring activity during the
   summer.  As  a  result  of  these  factors,  the  Group  delivered  robust,
   like-for-like sales growth of 8.6% during the period.

   There continues to  be strong demand  across the DIY  market, resulting  in
   particularly strong  sales  in  Wickes  and Toolstation,  as  well  as  the
   continued  encouraging  recovery  in  domestic  RMI  across  smaller  trade
   customers  in  Travis  Perkins  and  City  Plumbing.  Volumes  with  larger
   customers continue  to recover  more slowly,  impacting the  rate of  sales
   recovery in our  specialist merchants in  BSS, CCF, Keyline  and the  large
   contract side of the P&H business. Some larger customers were more impacted
   by the second national lockdown in November, alongside a negative impact on
   the kitchen and bathroom businesses as showrooms were forced to close.

   Government assistance

   Given the status of Wickes as  an essential retailer, and Toolstation  also
   benefiting from the surge  in DIY trade during  2020, both businesses  will
   return the business rates relief received as a result of the COVID19 crisis
   and repay monies received under the Government's Coronavirus Job  Retention
   Scheme. This  totals around  £50m, which  will correspondingly  reduce  the
   expected outturn for Group adjusted EBITA for 2020.

   Cash and liquidity headroom

   During November the  Group raised £250m  via a long  five-year public  bond
   issuance at a coupon of 3.75%. The proceeds will be used to repay the £250m
   September 2021 bond maturity before the end of December.

   Adjusting for bond movements,  at the end  of November liquidity  headroom,
   including the undrawn  £400m RCF, was  £988m. The strength  of the  Group's
   ongoing liquidity position  has enabled the  settlement during December  of
   approximately £100m of VAT deferred from H1 2020. Taking this into account,
   management continues to  expect covenant  net debt at  the year  end to  be
   similar to the 30 June 2020 position.

    

   Enquiries:

   Travis Perkins                          Powerscourt
   Matt Worster                            Justin Griffiths / James White
   +44 (0) 7990 088548                     +44 (0) 207 2501446
   matt.worster@ccfltd.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: TST
   TIDM:          TPK
   LEI Code:      2138001I27OUBAF22K83
   Sequence No.:  89773
   EQS News ID:   1155485


    
   End of Announcement EQS News Service

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