Advertisement

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%.

Advertisement - Article continues below

"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

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

What gold, bonds and tech stocks have in common
Stockmarkets

What gold, bonds and tech stocks have in common

"Risk off" or "safe haven" assets such as gold and government bonds have been doing well lately. But so have riskier tech stocks. That seems to defy c…
10 Jul 2020
An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
Share tips of the week
Share tips

Share tips of the week

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
10 Jul 2020