Travis Perkins doing better than expected

17th May 2010 08:09

Builders merchant Travis Perkins is pleased with progress during the first four months of 2010 and says current trading is ahead of management expectations.Sales at the owner of the Wickes DIY chain increased by 2.2% in the four months to 30 April and by 1.4% on a like for like basis.The merchanting business raised revenue by 3.3%, while like-for-like growth of 2.8% included a 6.1% jump in both March and April. "This improving sales trend has continued with a strong start to trading in the first two weeks of May," the firm said Monday."Gross margins for the first four months are now only slightly lower than in the comparable period in 2009, representing an improving trend. This reflects better competitive conditions and gains from sourcing and pricing initiatives offsetting lower product inflation."Revenue at the retail division, on a delivered basis, for the 17 weeks ended 1 May rose 0.3%, although like-for-like sales fell 1.7%. Wickes grew kitchen and bathroom sales by 12.6% like-for-like, but core products were down 5.1%."Although consumers and homeowners still appear to be waiting to see what life is going to be like on this side of the election, we are pleased with the overall progress the group has made in the first four months of the year," said boss Geoff Cooper."Current trading is ahead of management expectations, helping us to make inroads into the adverse effects of the weather-affected first two months of the year."