Travis Perkins posts increase in revenue as housing sector grows

26th Feb 2014 07:37

- Annual revenues and profits rise- Help to Buy boosts demand in housing sector- Dividend raised 24 per cent UK builder Travis Perkins achieved an increase in annual revenues and profits as demand for housing continued to grow.The company reported adjusted pre-tax profit of £321m in the year through December 2013, up 12.4% on the previous year. Adjusted operating profit jumped 6.7% to £347.6m, while earnings per share increased 14.3% to 104.6p. Total revenue increased by 6.3% to £5.1bn, driven by a 5% rise in like-for-like sales, continued network expansion and one extra trading day in the merchanting and plumbing and heating divisions. The company said it had a slow start to the year, but sales grew from April as the weather improved and confidence in the industry picked up. The trend continued through the year owing in part to the government's Help to Buy scheme, which has helped aid mortgage lending and boost demand in the housing sector. In the final quarter of 2013, all divisions were experiencing strong volume growth."The group is well placed to benefit from the upturn in UK building activity and in particular the strength of housing transactions," said Chief Executive John Carter. "We remain focussed on a disciplined approach to investing in the opportunities we see in each of our businesses to grow and improve returns."During the period Travis expanded its operations with the acquisition of Solfex, which distributes solar and heating product installation packages, and a 51% stake in an online business distributing heating products.The group also invested in opening Toolstation concessions within Wickes stores, new Benchmarx kitchen implants in Travis Perkins branches and introducing toolhire outlets in BSS branches.The group recommended a final dividend of 21p per share, up 24% on the prior year, bringing the full-year dividend to 31p. RD