Builders merchant Travis Perkinshas blamed a fall in pre-tax profits on the unseasonably wet weather in the first half of the year
The company, whose brands include City Plumbing, Benchmarx, Keyline, PTS, BSS, CCF and F&P Wholesale, Tile Giant and Toolstation, said revenue fell 0.7% to £2.4bn on a like-for-like basis, with the “exceptional” bad weather impacting badly on construction activity in the second quarter. Overall, however, revenue rose 2.7%, thanks mainly to the acquisition of Toolstation and further expansion in the wider branch network.
The adjusted pre-tax profit was £137.7m in the six months to 30 June, down 1.9% compared with the same period the previous year.
“Whilst weather patterns normally average themselves out over any trading period, it has been difficult to ignore the impact on the results of the first half trading of the wettest three months since records began”, said Geoff Cooper, chief executive.
“This has inhibited construction activity and particularly constrained turnover in our heavy-side related businesses in a market already struggling to recover to more normal levels.”
However, the merchant has increased gross margins and gained like-for-like market share in all four divisions: general merchanting, specialist merchanting, plumbing and heating, and consumer.
Overall, the company says that its outlook for the year remains unchanged, with gross margin and overhead actions to mitigate the slightly weaker market volumes. It says it can see no reason at this stage why it wouldn’t meet its full-year expectations.