Travis Perkins upbeat after challenging first quarter

Building materials group Travis Perkins reported weaker first quarter revenue after a very cold start to the year hurt already subdued construction industry activity but it said trading patterns in April and May were more encouraging.

Building materials group Travis Perkins reported weaker first quarter revenue after a very cold start to the year hurt already subdued construction industry activity but it said trading patterns in April and May were more encouraging.

The Northampton based builders' merchant said revenue for the four months to April 30th fell 1.2% from the corresponding period last year. Like-for-like (LFL) sales declined 1.8%.

"The very cold start to the year materially affected construction industry activity, and this coupled with continued tough trading conditions, impacted sales," said Travis Perkins.

April and early May trading however showed encouraging signs as normal seasonal weather returned.

"The shape of sales for the year so far has been consistent with our guidance, albeit the first quarter volumes were lower than anticipated," the group explained.

Chief Executive Geoff Cooper commented: "Latent demand and better weather has contributed to the encouraging trend at the start of the second quarter, with sales recovering in April and early May as activity has picked up."

"Leading indicators have strengthened, which continues to suggest there should be an improvement in volumes in the second half of the year as we anticipated."

Overall, Travis Perkins said it continues to be in good shape and is poised to respond to any meaningful signs of market recovery.

CJ

Recommended

Ensign Group: profiting from US private care
Trading

Ensign Group: profiting from US private care

Nursing and care-home specialist Ensign Group should thrive as Americans age. Matthew Partridge picks the best way to play it.
28 Sep 2021
How to profit from India’s high-tech recovery
Share tips

How to profit from India’s high-tech recovery

Professional investor David Cornell of the India Capital Growth Fund, selects three of his favourite Indian stocks to buy now.
27 Sep 2021
Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021

Most Popular

A nightmare 1970s scenario for investors is edging closer
Investment strategy

A nightmare 1970s scenario for investors is edging closer

Inflation need not be a worry unless it is driven by labour market shortages. Unfortunately, writes macroeconomist Philip Pilkington, that’s exactly w…
17 Sep 2021
What really causes inflation? Here’s what prices since 1970 tell us
Inflation

What really causes inflation? Here’s what prices since 1970 tell us

As UK inflation hits 3.2%, Dominic Frisby compares the cost of living 50 years ago with that of today, and explains how debt drives prices higher.
15 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021