Travis Perkins reveals growth in Q3 sales

Travis Perkins (LON: TPK) revealed a Q3 trading update on Thursday, where sales were boosted in the three months to the end of September.

Thanks to a drive in home improvement projects over the past year, sales at the group grew by 3.9%.

Total group sales were down by 3.4% due to store closures over June.

Looking forward, Travis Perkins said that during Q3 the Group’s end markets have shown an encouraging recovery from the lockdown period. Uncertainty amid the pandemic and the ongoing Brexit negotiations, however, means it is difficult to forecast performance in the near-term.

“Based on the assumption that current volume trends continue, including the ongoing strength in DIY sales, and that any further lockdown measures introduced do not have a significant impact on the Group’s end markets, the Group expects its EBITA performance for 2020 to be in the upper half of the current range of analysts’ expectations 3,” the group said in a statement.

Nick Roberts, Chief Executive, commented: “We have reported a positive overall like-for-like sales performance in the quarter as our markets have continued to recover following the impact of the national lockdown earlier this year. This has been driven by a strong recovery in demand across domestic RMI markets, benefitting the Travis Perkins, City Plumbing, Wickes and Toolstation businesses who serve these markets.

“Currently this domestic RMI trend remains strong. Whilst local trade activity has recovered well, our trade businesses continue to experience a lag in recovery from larger housebuilding and construction projects. However, there are signs of increasing workflow across these sectors as underlying demand strengthens as businesses have adapted to new and safe ways of working that enable them to keep sites open during periods of local lockdown.

“During the quarter, we have made further progress in strengthening the core of our trade businesses, in addition to completing the disposal of Tile Giant.”

Travis Perkins shares (LON: TPK) are trading +2.42% at 1.249,00 (0903GMT).