Travis soars on hopes for recovery
Shares in Travis Perkins have surged more than 9% after the Wickes owner said "signs of stability" were appearing in construction markets.
The builders' merchant said the retail DIY sector has performed more strongly after warm weather in recent months boosted demand for outdoor goods.
Action by housebuilders to restart work on mothballed sites and expansion in public sector construction have also buoyed trading although trade customers working on major private construction projects have suffered by more than expected, it added.
The company's comments echo those of rival Kingfisher, which last week reported a positive performance at its B&Q DIY stores as a result of sunnier conditions.
The update came as Travis announced a 27% drop in profits for the six months to June 30 to £90.4 million - better than market forecasts of around £60 million.
Revenues fell 13% to £1.45 billion. Like-for-like sales at its 80-strong Wickes DIY chain fell 2.4% although kitchens and bathrooms turnover rose 16%.
The firm said kitchen sales in particular had seen "excellent rates of growth" after the success of a TV advertising campaign, while underlying retail earnings rose 12.5% as the group benefited from the demise of MFI.
Geoff Cooper, chief executive, said: "Although some signs of stability in our markets have appeared recently, there remain short term risks on the downside.
"The group has performed ahead of our expectations in these testing markets conditions.
"We have cut costs, traded well and generated strong free cash flow."
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