Travis Perkins continues to recover after Covid-19 crash

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Travis Perkins has “continued to recover well”, as it reveals the full impact Covid-19 has had on sales figures for the first half of 2020

In advance of the announcement of interim results on 8 September, Travis Perkins sets out a trading update covering sales figures by quarter for the first half of 2020.

Group revenue for the first six months of 2020 was £2,780m, down 20% on the same period in 2019 (£3,484m) due to the impact of the Covid-19 pandemic and resulting lockdown.

The merchanting businesses have continued to recover well with the improvement in RMI markets and infrastructure spending proving to be stronger than the new housebuilding and commercial construction markets.

Plumbing and heating markets are also recovering more gradually as projects are predominantly carried out indoors.

Toolstation and Wickes continue to benefit from robust DIY sales. Overall, Wickes achieved strong sales growth in June following the re-opening of its stores in late May.

Despite the closure of 165 branches in June, representing around 8% of Travis Perkins overall estate, the company has continued to experience an improving trend on total sales volumes so far in July.

The group’s total sales run rate now close to the prior year.

At 30 June, Travis Perkins had £455m of cash on deposit giving a strong overall liquidity headroom position of £855m.

Remain cautious

Nick Roberts, CEO of Travis Perkins, said: “Since the trading update on 15 June, the business has continued to recover well with good demand from RMI and infrastructure markets offsetting ongoing challenges in the new build and commercial construction sectors.

“We remain cautious as to the near-term headwinds facing our business and the wider economy, nevertheless the decisive actions we have taken to manage our cost base mean that we are well placed to continue to service our customers, support our colleagues and generate value for our shareholders.”

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