News Item: Travis Perkins Continues to Recover after Covid-19 Crash
In advance of the announcement of interim results on 8th September, Travis Perkins sets out a trading update covering sales figures by quarter for the first half of 2020.
Group revenue for the first six months of 2020 was £2,780million, down 20% on the same period in 2019 (£3,484million) due to the impact of the Covid-19 pandemic and resulting lockdown.
The merchanting businesses have continued to recover well with the improvement in RMI markets and infrastructure spending proving to be stronger than the new housebuilding and commercial construction markets.
Plumbing and heating markets are also recovering more gradually as projects are predominantly carried out indoors.
Toolstation and Wickes continue to benefit from robust DIY sales. Overall, Wickes achieved strong sales growth in June following the re-opening of its
stores in late May.
Despite the closure of 165 branches in June, representing around 8% of Travis Perkins overall estate, the company has continued to experience an improving trend on total sales volumes so far in July.
The group's total sales run rate now close to the prior year.
At 30th June, Travis Perkins had £455m of cash on deposit giving a strong overall liquidity headroom position of £855m.
Nick Roberts, CEO of Travis Perkins, said: "Since the trading update on 15 June, the business has continued to recover well with good demand from RMI and infrastructure markets offsetting ongoing challenges in the new build and commercial construction sectors.
"We remain cautious as to the near-term headwinds facing our business and the wider economy, nevertheless the decisive actions we have taken to manage our cost base mean that we are well placed to continue to service our customers, support our colleagues and generate value for our shareholders."