A strong performance continuing through the second quarter has encouraged builders merchant group Travis Perkins to announce that its full year earnings are expected to be materially ahead of current market expectations
A trading update issued this morning (June 22) reveals that, following a robust start to 2021, the high levels of growth experienced by the merchant in March have continued throughout the second quarter, driven by the strength of both the domestic and commercial repairs, maintenance and improvement markets.
The Merchanting division saw total sales growth of 6.3%* vs 2019 during April and May. Toolstation UK continued to take market share with total sales year to date up 70.2% vs 2019 while Toolstation Europe continues to grow strongly with performance ahead of management expectations.
Given the strong recent trading performance, the Board now believes that adjusted operating profit for the continuing business for the full year 2021 will be materially ahead of market expectations** and, assuming that there is no significant change in market conditions, will be at least £300m.
Nick Roberts, Chief Executive, said: “The ongoing strength of the Group’s trading performance through the second quarter remains underpinned by demand in both domestic and commercial RMI markets. Our Merchanting businesses have recovered strongly while Toolstation’s performance continues to be ahead of expectations. Whilst we are experiencing inflationary pressures across a number of product ranges, due to high demand and supply constraints, we are focused on working with both our suppliers and customers to ensure consistency of supply and fair outcomes for all.”