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.

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