Easter trading was dampened by the early holidays and poor weather but many companies remain optimistic about 2008 despite the “credit crunch”, a TTJ straw poll has found.
Swindon-based A Grade Timber, which supplies builders merchants, said March trading was “sufficiently good” to ensure a first quarter sales growth of 20%, while April had started “busy”.
Andrew Pathen, managing director, said growth was partly due to the company’s timber specialisation, with the number of competitors reduced due to trade consolidation and the appearance of more general builders merchants.
Sidcup-based Andrews Timber, reported first quarter single digit growth with Easter quiet.
“We would normally expect Easter to kick off the decking and fencing business for us,” said Andrews’ Brian Pearce. “But I think everyone was forewarned that the weather was not going to be particularly good.”
Alan Beer, director of Liverpool-based Beers Timber, said the year started poorly with market “hesistancy”, but trade had picked up with April starting strongly and 2008 sales slightly up on last year. Growth was price rather than volume led, but trading was volatile, he said.
“What I know from my customers is that they are scaling back what they expect to achieve this year and they have not seen the amount of work in the pipeline coming through as quickly as anticipated.”
Alsford Timber sales director Keith Reynolds reported a busy start to Easter but trade dropping off on the Monday. He said he was pleased with the first quarter, despite it being a “challenging period”. “We’re concentrating on established products such as timber panels, decking and fencing.”
Travis Perkins, said Easter timber sales were steady, although the early holiday meant sales were not as big as normal.
Forest Garden plc chief executive Jonathan Halford expects garden products business to kick off in late April following the Easter “non-event”, and predicted the May Bank Holidays to “big” trading periods.
He remained cautious about consumer spending, but added: “It’s not as gloomy as the media says yet”.