Travis Perkins profit soars on BSS acquisition

29th Jul 2011 07:25

Building materials provider Travis Perkins posted a 25% surge in half year pre-tax profit, bolstered by earnings from last year's acquisition of plumbing supplies firm BSS.The owner of the Wickes home improvement products chain said its outlook for the full year remains the same with a weaker trading pattern being offset by earlier than expected BSS synergies.The group, which distributes building, plumbing and heating materials to the UK construction and building trade industries, said adjusted pre-tax profit rose 25% to £140m. Group revenue jumped 54% at £2.34bn and up 7.2% on a like-for-like basis."The group has achieved profits in line with our expectations, despite a contraction in volumes in our markets. These difficult trading conditions have caused strain amongst weaker competitors, with the failure of two of the group's retail competitors, and signs of further sector consolidation elsewhere," the group said.Overall revenue for Wickes increased by 2% and core sales increased by 4.1 although sales of 'big ticket' kitchen and bathroom items fell. Chief executive Geoff Cooper commented, "The difficult market backdrop will continue to put pressure on weaker competitors and will lead to further consolidation in our markets, particularly in merchanting." Travis Perkins said the integration of its £800m BSS acquisition, which was completed in December, is progressing well.Underlying net debt was reduced by £87m to £696m.An interim dividend of 6.5p per share has been offered, up from 5p the year before.CJ