Travis Perkins have reported a 16.5% increase in pre-tax profit for the first half of the year, taking the figure to £128.6m from £110.4m in the same period in 2006.
The results, published today are for the six-month period to June 30 and show rises across the board. Turnover has risen by 12.3% to £1,585m and operating profit has gone up 11.7% to £128.6m. However, the company remains cautious about the outlook, mainly die to rising interest rates.
The merchant-specific part of the business also performed strongly, showing an improvement of 9.6% in like-for-like sales per trading day. Price inflation has undoubtedly played a part in these increases, the most marked of which, says the company, has been in the timber category, which represents 19% of sales and which has seen a 14% increase in prices.
Travis Perkins chief executive Geoff Cooper said: “The performance of the group in the first half of this year has been strong. We have continued to drive revenue gains and cost savings through our ‘best practice’ programme and further expand our branch networks. These have delivered strongly improved operating profit, profit before tax and earnings per share and have further reduced debt. We continue to gain like-for-like and total market share in both our trade and retail divisions.”
However, he continued, “Whilst we remain cautious about market prospects due to the potential impact of increasing interest rates on both new and secondary housing markets and weakening consumer confidence, the strong all-round performance of the group leaves us confident of further financial progress in the second half of the year.”