For the first time, revenue at Travis Perkins Group rose to over £5bn, the company’s final results for 2013 reveal.
Group sales for the year ending 31 December 2013 were 5,148.7 with annual growth of 6.3%, 5.0% on a like-for-like basis. Operating profit up 10% to £330m profit before tax up £35m or 12.4% to £321m Operating margin improved by 0.1pp to 6.8%
The general merchanting division, which includes Travis Perkins increased revenue by 8.4% to £1.5bn, with new housing activity continuing to drive market volume growth, coupled with improvement confidence amongst trade customers during the second half.
The Specialist Merchanting division, which includes Keyline, CCF, benchmarx and saw sales of £660m, up 9.4% from the same period last year.
An extension of the range offered by Keyline during the year enabled it to deliver double digit revenue growth in both the first half and second half of the year. After a sluggish first quarter, CCF’s revenue growth improved in each successive quarter, recording double digit growth in the second half and gaining market share for the year. Benchmarx Kitchens and Joinery saw further improvements to profitability in the second half.
The Plumbing and Heating division of BSS, PTS, City Plumbing and F & P increased sales by 6% to £1.73bn
Demand for domestic plumbing and heating products grew steadily during the year as house builder activity increased. RMI activity also increased and the government backed ECO (Energy Company Obligation) schemes further assisted the number of boiler installations. The ECO schemes will continue through 2014, but most likely at a lower level of activity than experienced in 2013.
The Consumer Division, which includes Wickes, Toolstation and Tile Giant saw revenue rise 2.4% to £1.18bn, despite what the group calls “a challenging customer environment and inclement weather throughout the first quarter.”
John Carter, Chief Executive, said: “2013 was another good year for Travis Perkins and the momentum in the second half of last year has continued into 2014. The Group is well placed to benefit from the upturn in UK building activity and in particular the strength of housing transactions. We remain focussed on a disciplined approach to investing in the opportunities we see in each of our businesses to grow and improve returns.”