TPK Travis Perkins Plc

 
TIDMTPK 
 
 
   19 October 2017 
 
   Travis Perkins plc 
 
   Third quarter 2017 trading update - "Trading on track despite a 
challenging market backdrop" 
 
   Highlights 
 
 
   -- Third quarter total Group sales growth of 3.5% and like-for-like sales 
      growth of 4.1% 
 
   -- Continued strong growth across all businesses in the Contracts division 
 
   -- Significant improvement in sales performance in the Plumbing & Heating 
      division 
 
 
   John Carter, Chief Executive, commented: 
 
   "We have delivered a good like-for-like sales performance across the 
Group in the third quarter against a challenging market backdrop of 
input cost inflation and market volatility. Volumes were broadly flat 
with inflation driven price increases the main component of our 
like-for-like growth. Whilst it is relatively early days in the 
transformation plan, it is encouraging to see positive progress in the 
Plumbing & Heating division. 
 
   Trading conditions in our markets continue to be mixed, with consumer 
discretionary spending under pressure from rising inflation and on-going 
uncertainty in the UK economy. We maintain our confidence in the 
long-term fundamental drivers of our markets, and this underpins our 
plan to invest in our businesses to improve our customer propositions 
and extend our competitive advantage." 
 
 
 
 
Q3 2017 sales      General      Plumbing & 
growth          Merchanting(1)  Heating(1)   Contracts(1)  Consumer(2)  Group 
Like-for-like 
 sales                    2.4%        5.4%*          7.7%         2.4%    4.1% 
Net new space 
 and 
 acquisitions             0.7%       (2.5)%          0.6%         2.6%    0.6% 
Trading day 
 differences**          (1.6)%       (1.6)%        (1.6)%            -  (1.2)% 
Total sales               1.5%         1.3%          6.7%         5.0%    3.5% 
Two-year 
 like-for-like            3.0%         1.1%         13.8%         8.9%    6.2% 
 
 
 
 
YTD 2017 sales     General      Plumbing & 
growth          Merchanting(1)  Heating(1)   Contracts(1)  Consumer(2)  Group 
Like-for-like 
 sales                    0.7%        0.9%*          8.6%         4.6%    3.3% 
Net new space 
 and 
 acquisitions             0.9%       (0.9)%        (0.4)%         2.7%    0.7% 
Trading day 
 differences**          (0.5)%       (0.5)%        (0.5)%       (0.8)%  (0.6)% 
Total sales               1.1%       (0.5)%          7.7%         6.5%    3.4% 
 
   *Plumbing & Heating LFL sales figures exclude sales from branches closed 
since 01 July 2017 
 
   **Total Group sales growth in Q3 was impacted by one fewer trading day 
in 2017 in the merchant businesses: General Merchanting, Plumbing & 
Heating and Contracts 
 
   Total Group sales grew by 3.5% in the third quarter, with like-for-like 
sales growth of 4.1%, in part benefiting from a relatively weak 
comparable in 2016. Sales price inflation across the Group in the third 
quarter was 3.9%, (3.4% YTD), reflecting pass through of cost price 
inflation driven by foreign currency movements since June 2016 and 
recent increases in commodity prices, particularly in timber, copper and 
some specialist insulation materials. The combined Merchanting divisions 
(General Merchanting, Plumbing & Heating and Contracts) delivered 
like-for-like sales growth of 4.7% and total sales growth of 2.9%. 
 
   General Merchanting like-for-like sales grew by 2.4%. In the period, the 
heavyside range centre network was extended to support all Travis 
Perkins branches in England and Wales, with this market-leading 
proposition now available to a significantly larger customer base. 
 
   Plumbing & Heating like-for-like sales growth improved significantly in 
the third quarter, with better performance in the City Plumbing and 
wholesale businesses partially offset by continued challenging trading 
conditions in the contract installer market. The transformation 
programme progressed, with 33 branches closed in the quarter, a 
transactional website now in place for City Plumbing, and improved 
promotional activity in the local trade and wholesale markets delivering 
encouraging results. 
 
   Strong like-for-like sales growth continued in the Contracts division, 
with BSS, CCF and Keyline all demonstrating good growth and 
outperforming their markets, supported by the continued strength of new 
residential housebuilding and pass through of cost price inflation. 
 
   Like-for-like growth in the Consumer division slowed in the third 
quarter to 2.4%, primarily due to more subdued  growth in Wickes 
reflecting very strong comparatives from Q3 2016 and an increasingly 
difficult market environment. The roll out of the Toolstation network in 
the UK and the Netherlands continued, demonstrating excellent 
like-for-like and overall sales growth. 
 
   The Group continues to make both capital and operating cost investments 
to enhance its propositions to better serve its customers. Work 
continued in the third quarter to build the future ERP platform for the 
merchant businesses, and to enhance digital capabilities across the 
Group. The step-up in operating costs associated with these investments 
will deliver a long-term competitive advantage and position the Group to 
outperform its markets. The Group remains cautious on the market outlook 
and continues to carefully manage its underlying cost base. Despite 
these headwinds the Group remains on track to achieve full year 
expectations. 
 
   Enquiries 
 
   Investor / analyst enquiries 
 
   Graeme Barnes | +44 7469 401819 | graeme.barnes@travisperkins.co.uk 
 
   Zak Newmark | +44 7384 432560 | zak.newmark@travisperkins.co.uk 
 
   Media enquiries 
 
   David Allchurch | Tulchan Communications | +44 207 353 4200 
 
   Footnotes 
 
 
   1. Like-for-like sales growth for the three month period ended 30 September 
      2017 compared to the three month period ended 30 September 2016 adjusted 
      for the impact of an extra trading day in the 2016 period. Total sales 
      growth for the three month period ended 30 September 2017 compared to the 
      three month period ended 30 September 2016 not adjusted for the impact of 
      an extra trading day in the 2016 period. 
 
   2. Wickes like-for-like growth for the 13 week period ended 30 September 
      2017 compared to the 13 week period ended 1 October 2016. Wickes total 
      sales growth for the 92 day period ended 30 September 2017 compared to 
      the 92 day period ended 1 October 2016. 
 
 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Travis Perkins PLC via Globenewswire 
 
 
  http://www.travisperkinsplc.co.uk/ 
 

(END) Dow Jones Newswires

October 19, 2017 02:00 ET (06:00 GMT)

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