Builders merchant Travis Perkins saw pre-tax profits up 1.1% to £300m for the year to December 31 2012, on group revenue that was up 1.4% at £4,845m.
The group’s specialist civils business Keyline saw both turnover and profits rise – from £26m to £32m and £604m from £582m, respectively – boosted by the administration of its main rival WTB.
Travis Perkins said: “The failure of the largest civils merchant brought some short-term benefit to Keyline as both customers and suppliers sought to put more business our way.”
The firm is expecting a volatile year but hopes things pick-up in the second half of 2013.
The general merchanting division increased turnover by 0.9% from £1,457m to £1,443m
The specialist division, which includes Keyline, saw turnover rise 3.6% to £604m from £582m. The division gained further market share and reported a 2.3% like-for-like sales growth on the back of above average price inflation.
The Plumbing and Heating division saw turnover fall slightly to £1,632m from £1,736m
Geoff Cooper, Chief Executive, said: “Despite continued tough conditions in construction markets, Travis Perkins has made good progress, with increases in overall turnover and profits, continued strong cash generation and further development of our networks and services in the UK and the launch of a small scale trial in continental Europe.
“Whilst there are indications, for the first time in a while, that growth will return to our markets later this year, we anticipate volatile conditions will persist in the short term, further troubling weaker operators.
“A gradual recovery in our markets, together with targeted like-for-like volume outperformance and tight control of costs should deliver an expansion of our operating margins. The Group has an excellent track record of deploying self-help initiatives to achieve these goals, and our position as the UK’s leader in building materials strengthens our position and prospects.”