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

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?
Bitcoin

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?

Dogecoin – a cryptocurrency created as a joke – has risen by more than 9,000% this year alone. Saloni Sardana looks at how something that began as an …
19 Apr 2021
The FTSE 100 has clawed back above 7,000 – how much higher can it go?
UK stockmarkets

The FTSE 100 has clawed back above 7,000 – how much higher can it go?

The FTSE 100 index has risen to over 7,000 for the first time in over a year – it now sits just above where it was in 1999. But its era of neglect cou…
19 Apr 2021
The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021