Travis Perkins enjoys strong start to the year as revenue grows

Builders and plumbers merchant group Travis Perkins plc reported a 7.8% increase in revenue for the first half of the year despite continued struggles in its plumbing and heating division.

Revenue increased by 7.8% in its general merchanting division for the six months ended 30 June 2015, with the company reporting strong sales growth in heavyside categories.

The Group continued to see a slump in its plumbing and heating division with revenues down 0.7%, stating intense price competition impacting sales in both Plumbing Trade Supplies (PTS) and F&P Wholesale.

However, the firm noted signs of a recovery in the local bathroom installer market served by City Plumbing Supplies (CPS).

The contracts division, including Keyline, reported an 18% rise in sales, while the consumer business, which includes DIY chain Wickes, enjoyed an 8.6% increase in revenue to £693m.

Interim dividend increased 20.4% to 14.75p, which the Group said reflects confidence in future growth prospects.

John Carter, chief executive officer of the building supplies company, said: “The Group has delivered a strong underlying performance in the first half.

“Our key strategic priorities are unchanged; modernising General Merchanting, transforming Wickes and completing the Plumbing & Heating re-segmentation programme.

“We continue to anticipate a full year result in line with expectations and delivering against our targets including low double-digit profit growth and sales outperformance of our markets.

“In support of these targets we have increased both capital and operational investment in our businesses to improve our customer propositions across range, availability and value, whilst allowing us to leverage the scale of the business.”