Travis Perkins has had an encouraging start to the new year, as it reports in its Q1 trading update.
The positive start to the new year has been driven by strong RMI demand with Group (excluding Wickes) like-for-like sales growth of 17.4% and 11.8% on a two year like-for-like basis, the update reports.
It also shows that the group has had good like-for-like growth in Merchanting and P&H, up 15.5% and 11.4% respectively, underpinned by sales retention from the 2020 restructuring programme. Additionally, the report details a continued acceleration of Toolstation growth with like-for-like sales up 42.0%.
There has also been an ongoing strong performance in Wickes, with like-for-like sales up 19.7%. Travis Perkins has also reported growth in Core of 38.5%, particularly offset by DIFM, down (25.0%) on a like-for-like basis due to showroom closures.
Furthermore, the group claims that its Wickes demerger is on track for completion, with trading in Wickes shares commencing on 28 April 2021. Travis Perkins share consolidation to be effective following market close on 28 April, trading in new Travis Perkins shares will commence on 29 April.
Nick Roberts, Chief Executive at Travis Perkins, said: "The Group has enjoyed an encouraging start to the year with robust like-for-like sales growth across our businesses, underpinned by strong demand in the RMI market. The Merchanting business has maintained the momentum seen in the second half of last year while Toolstation continues to outperform, driven by its convenient and trade focused proposition.”
“I am also pleased to report that the Wickes demerger process remains on schedule to be completed at the end of April, leaving the business a simplified and trade focused group.”
“We are encouraged by the robustness of the RMI market and the continued recovery in our other key end markets. However, at this early stage in the year, our expectations remain unchanged as we continue to make progress on the delivery of our longer-term strategic plans."