Contracts division keeps Travis Perkins in line in Q1

The FTSE 250 firm reported a “strong” performance by its contracts division, with like-for-like sales growth of 12.1%.

There was also consistent, strong performance by the consumer division, where like-for-like sales grew 2.9%, and the board reported that “encouraging” price initiatives were delivered to recover input cost inflation.

Results from the general merchanting and the plumbing and heating divisions were more disappointing, with like-for-like sales down 0.3% and 1.1% respectively.

Total sales were up across the board, growing by 3.1% in general merchanting, 1% in plumbing and heating, 13.3% in contracts and 4.4% in consumer.

“We delivered solid like-for-like sales growth in the first quarter, with volumes across the group, as anticipated, broadly flat,” said chief executive John Carter.

“Revenue growth reflected careful pricing activity to recover input cost inflation assisted by the new pricing tools implemented over the last 12 months.

“Our contracts business delivered a standout performance growing well ahead of the market.”

Despite mixed trading conditions expected for the remainder of 2017, Carter said the Travis Perkins board continued to be confident in the longer term outlook for the building materials market and its opportunities to grow and outperform.

“We continue to invest to build upon the scale advantage we have created and to extend or develop superior customer propositions.

“These investments will enable us to improve cash flow and returns over the longer term.”