The UK’ s largest builders an plumbers merchant chain Travis Perkins Group has announced that it is putting up its Plumbing and Heating division for sale.
A strategy update issued this morning (December 4) said that Travis Perkins is seeking to simplify its structure and streamline its cost base, focus more on its trade businesses, and improve the performance of its Wickes DIY/trade hybrid. A future sales of Wickes has not been ruled out.
Shares in Travis Perkins have dropped 30% in the past year as the group aims to save between £20m-£30m a year over the next 18 months.
John Carter, CEO, commented: “We have developed a clear plan to focus on delivering best-in-class service to our trade customers, and to simplify the Group to reduce complexity, speed up decision making and reduce costs. Our trade businesses hold strong positions in attractive markets, and these initiatives will enable us to concentrate our management time and capital in the highest returning areas.
“Our strong balance sheet and free cash flow generation, driven by growing earnings and lower capital expenditure, will underpin our commitment to drive shareholder value and a progressive dividend.”
The Travis Perkins P&H division includes: PTS, CPS, National Shower Spares, City Heating Spares, The Underfloor Heating Store, Solfex and DHS.