Travis Perkins shrugs off the winter chill

BUILDERS' merchant Travis Perkins yesterday said better-than-expected trading had helped the group to bounce back from a snow-bound beginning to 2010.

Consumer caution weighed on DIY chain Wickes – where like-for-like sales fell 1.7 per cent in the four months to 30 April – but merchanting sales rose 2.8 per cent year on year.

This left like-for-like sales 1.4 per cent higher across the overall group as Travis gained market share in both retail and merchanting divisions.

Chief executive Geoff Cooper said: "Current trading is ahead of management expectations, helping us to make inroads into the adverse effects of the weather-affected first two months of the year.

"Our more positive merchanting performance is more than balancing the effect of wary consumers currently holding on to their money."

The firm's update brings more positive news from the sector after building and heating supplies firm Wolseley said on Friday it was on course to beat City profit hopes.

Despite the weaker performance at Wickes, the group said the rate of sales declines had eased in recent weeks with the "improving trend" continuing into early May.

Wickes has pushed hard into the kitchen and bathrooms market after launching a television advertising campaign early last year. Increased sales of kitchens and bathrooms – up 12.6 per cent on last year – partially offset like-for like sales falls of 5.1 per cent elsewhere at Wickes.

The group's merchanting arm meanwhile enjoyed a "strong start" to trading in May amid improving margins and early signs of recovery in the construction industry.

Numis analyst Howard Seymour said: "The bounce back in like-for-like sales in merchanting especially is impressive, and while comparisons will get tougher going forward we believe the recovery in this part of the group is key to progress in 2010 and 2011."

Travis Perkins has more than 600 branches supplying about 100,000 product lines to the building industry.