Travis Perkins raises profit guidance as positive momentum continues

Builders' merchant Travis Perkins lifted full-year guidance as recent positive trading momentum continued during the third quarter, with the group now expecting full-year adjusted operating profits to be ahead of current market expectations.

Travis Perkins said given its "robust underlying performance", it now expects that full-year adjusted operating profits will be ahead of current market expectations of £316.0m and at least £340.0m, inclusive of around £40.0m of property profits.

The upgrade comes alongside Travis Perkins revealing like-for-like sales had grown 13.1% year-on-year across the group, or 13.3% when compared to 2019's pre-Covid figures.

The FTSE 250-listed firm said its merchanting business delivered like-for-like sales growth of 15.3%year-on-year, with end-market demand remaining "robust", while Toolstation third-quarter sales grew 1.4% on a like-for-like sales basis, or 25.2% on a two-year basis, as customer mix normalised following "exceptional demand" from DIY customers in 2020.

Chief executive Nick Roberts said: "The group has delivered a strong performance in the third quarter and is navigating well-documented supply chain and cost inflation challenges very capably.

"End market demand remains robust and we are confident that we are in a strong position to deliver future growth."

As of 0850 BST, Travis Perkins shares were down 4.01% at 1,521.50p.