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

Delivering profits : should you buy Royal Mail shares?
Share tips

Delivering profits : should you buy Royal Mail shares?

The volume of parcels delivered by Royal Mail soared during the pandemic, and so did its profits. But it has been coming under pressure lately. So, as…
19 May 2022
Avoid easyJet shares – there are better airlines to invest in
Share tips

Avoid easyJet shares – there are better airlines to invest in

EasyJet used to be one of Europe’s most impressive airlines. But now it is facing challenges on all fronts and losing out to the competition. Rupert …
19 May 2022
Tech stock crash – dotcom bust 2.0 is upon us
Tech stocks

Tech stock crash – dotcom bust 2.0 is upon us

It’s carnage in the tech sector as the market crashes. But that spells opportunity for canny investors, says Matthew Lynn
19 May 2022
Three things you should learn from Bill Ackman's brilliant Netflix trade
Investment strategy

Three things you should learn from Bill Ackman's brilliant Netflix trade

Hedge fund guru Bill Ackman has lost $400m selling Netflix shares. John Stepek explains why this was a brilliant trade, and outlines three things that…
19 May 2022

Most Popular

Get set for another debt binge as real interest rates fall
UK Economy

Get set for another debt binge as real interest rates fall

Despite the fuss about rising interest rates, they’re falling in real terms. That will blow up a wild bubble, says Matthew Lynn.
15 May 2022
Is the oil market heading for a supply glut?
Oil

Is the oil market heading for a supply glut?

Many people assume that the high oil price is here to stay – and could well go higher. But we’ve been here before, says Max King. History suggests tha…
16 May 2022
Value is starting to emerge in the markets
Investment strategy

Value is starting to emerge in the markets

If you are looking for long-term value in the markets, some is beginning to emerge, says Merryn Somerset Webb. Indeed, you may soon be able to buy tra…
16 May 2022