Chief executive Geoff Cooper reported there were indications, “for the first time in a while”, that growth would return to the company’s markets later this year, with volatile conditions persisting in the short term.
The company said early 2013 trading was difficult to judge because of a strong comparison in January 2012, and due to poor weather conditons so far this year. Group like-for-like sales for the first seven weeks were down 5.1% and February has been “broadly flat”.
Travis Perkins anticipates stronger business in the second quarter, with 2013 market volumes likely to be lower than 2012, but at a smaller rate of decrease – around 1-2%. The company is monitoring lead indicators carefully and expects its next change to be a “more expansionary stance in volume”.
Its full-year results show total group sales in 2012 were up 1.4% to £4.84bn. The general merchanting division recorded adjusted profits of £167m (2011: £170m) from sales of £1.45bn, with the consumer division (Wickes, Toolstation and Tile Giant) reporting adjusted profits rise by 40% to £65m from sales of £1.15m.
Total like-for-like sales volumes reduced 2.3% in 2012, while price inflation was limited to 1%.
“Despite continued tough conditions in construction markets, Travis Perkins has made good progress, with increases in overall turnover and profits, continued strong cash generation and further development of our networks and services in the UK and the launch of a small-scale Continental trial [of Toolstation] in Europe,” said Mr Cooper.
