Builders and plumbers merchant chain Travis Perkins plc has announced Group sales grew by 7.2% in the first quarter of 2015 despite the anticipated slump in its plumbing and heating division.
The Group’s general merchanting performed well through the quarter, with like-for-like sales up 8.1%, with growth particularly strong in heavyside categories, direct sales and the Toolhire business. The company added that price inflation weakeend modestly through the quarter with lower inflation on heavyside categories and modest price deflation on lightside categories.
The consumer businesses recorded a growth of 8.7% in its total sales, while the contracts division recorded significant growth of 17.3% of sales with CCF and Keyline boasting strong growth in the quarter.
Overall sales in the plumbing and heating division were down 3.7% with like-for-like sales down 6.1% due to “challenging” market conditions, driven by the continued impact of the Government ECO scheme and the disruption of its re-segmentation scheme.
John Carter, Travis Perkins’ chief executive, said the Group’s performance in the first quarter of the year was driven by the investments it has made, such as the modernisation programme in general merchanting.
He said: “Our three priorities for the year ahead remain unchanged; the modernisation of Travis Perkins, the transformation of Wickes, and the re-segmentation of the Plumbing & Heating businesses.
“The progress we are making underpins our confidence that the plans we have in place and the investments we are making will support further outperformance of our markets, medium-term double digit operating profit growth and continued growth in return on capital.”
Last month, Travis Perkins announced plans to create 4,000 new jobs and open 400 branches over the next four years.