Markets stabilising at Travis Perkins

30th Jul 2009 07:35

Building materials supplier Travis Perkins posted a 27% drop in half year pre-tax profit but in recent months has seen evidence that some of its markets are beginning to stabilise.The group that owns Wickes home-improvement stores said pre-tax profit fell to £90.4m in the six months ended from £124.5m the year before. Analysts had forecast pre-tax profit between £60m and £70m. Revenue was down 13% to £1,454.2m. Commenting on the results chief executive Geoff Cooper said, "We performed ahead of our expectations in these testing markets conditions. We have cut costs, traded well and generated strong free cash flow. This has produced good operating margins, and together with the strengthening of the balance sheet has significantly reduced net debt." Travis Perkins, which raised £300m in rights offering in May, said it is "well placed to continue to perform ahead of competitors through this recession and to grow its business as longer term market prospects improve."