INTERVIEW: Travis Perkins Sees Slowdown On Consumer Caution

29th Jul 2010 09:01

By Anita Likus Of DOW JONES NEWSWIRES LONDON (Dow Jones)--U.K. builders' merchant and home improvement retailer Travis Perkins PLC (TPK.LN) expects a slowdown in growth in the second half of the year due to increased consumer caution, Finance Director Paul Hampden Smith said Thursday. "Like-for-like growth in merchanting will decline because less people are moving houses," he told Dow Jones Newswires, adding: "We also expect greater caution on the consumer side so buying big-ticket items will be postponed." Travis Perkins has been hit hard by the slump in U.K. construction but earlier Thursday reported bumper first-half earnings. "Confidence was higher in the past two to three months but it is a bit weaker now and will hit both merchanting and retail," said Hampden Smith. Still, the company resumed its interim dividend of 5 pence and will likely pay a total dividend of around 15 pence a share at the end of the year. Hampden Smith said he expects mid-single-digit organic revenue growth in merchanting in 2010 and retail revenue to be flat. He added that he would be comfortable with similar earnings per share growth for 2010 as last year. -By Anita Likus, Dow Jones Newswires; +44 20 7842 9407; [email protected] (END) Dow Jones Newswires July 29, 2010 04:01 ET (08:01 GMT)