Travis Perkins earnings to be at top end

17th Dec 2009 07:39

Sales in last two months at builders merchant Travis Perkins have been a tad ahead of expectations.The group's retail division, which essentially comprises the Wickes chain of home improvement stores, saw total turnover rise 2.6% in the 48 weeks to 28 November from a year earlier, with like for like sales up 2.3%.For the nine weeks to 28 November like for like (lfl) sales at Wickes are up 10.2%.In the merchanting division, which addresses the building trade, total turnover in the year to end November was down by 13.3% from a year ago, while lfl sales fell 14.3%. However, the lfl trend is improving, with lfl sales down by just 5.5% in the last two months, as comparative figures soften.The decline in volume relative to peak levels in early 2008 'appears to have reached a plateau,' but the group has yet to see any signs of any sustained improvement.Net debt has reduced further in the second half of the year.The improving sales trends, along with further one-off employment related savings, means that full year profits should be at the top end of market expectations.The group is maintaining a cautious outlook for 2010, however, and is not advising investment analysts to revise their earnings forecasts for this period.