Travis Perkins PLC has revealed that revenue grew by 3.5% in the first half of 2017, and by 2.7% on a like-for-like basis. However, adjusted operating profit was 2.1% lower at £190m largely due to the challenging Plumbing & Heating market and recent investments, including in information systems but CCF was a stand out performer in the Contracts Division.
John Carter, chief executive, said: “We executed our plan well and delivered a solid overall performance in the first half of 2017 against a challenging market backdrop of pronounced input cost inflation and market volatility. The robust growth and outperformance in our Contracts and Consumer divisions build on strong customer propositions and successful investments in those businesses.”
The Contracts Division, which is home to CCF, delivered strong sales growth at 8.3% and 9.1% on a like-for-like basis. All businesses demonstrated excellent growth, with CCF the stand out performer. The division experienced significant input cost inflation in the half. Gross margin performance in the division was good as all three businesses focused on pricing activity to recover the input cost inflation. Adjusted operating margin expanded by 20bps with improvements from operating
leverage partially offset by the shift in sales mix towards CCF and Keyline.
The long term drivers of market growth remain strong, centred on the UK’s requirement for more homes and the structural underinvestment in the repair, maintenance and improvement of existing dwellings and infrastructure. Macro-economic data has been weaker in the first half of 2017, and recent lead indicators, including consumer confidence and housing transactions, have painted a mixed picture for the near-term performance of the Group’s end markets and this is expected to continue in the second half of 2017.
The Group will continue to focus on executing the clear plans it has in place whilst ensuring that it responds quickly to any changes in market conditions. The investments made in recent years leave the Group well positioned for the future.