Travis Perkins Building materials group Travis Perkins is enjoying robust first-half results despite a tough plumbing and heating market.
The builder’s merchant appears confident about the construction division, having raised its dividend by over 20%.
The FTSE 100 company, which operates over 600 UK outlets and also runs the Wickes chain, saw a 7.8% jump in sales for the first half of the year.
“The group has delivered a strong underlying performance in the first-half,” said Chief Exec John Carter.
“Our key strategic priorities are unchanged; modernising general merchanting, transforming Wickes and completing the plumbing and heating [revamp] programme.”
Carted outlined expectations for Travis Perkins to outperform the market this year and to report a small rise in full-year profits.
“Demand for housing continues to outpace supply,” he added.
“Population growth, immigration and a trend towards smaller family units is creating around 225,000 new households per year, while only 141,000 new homes were built in 2014.
This demand for houses along with historic under-investment in the existing housing stock gives a reasonable expectation of growth in both the new house-building and the repair, maintenance and improvement markets.”
“Travis Perkins has ultimately been quicker on the ground to react to the changing dynamics in the DIY market, compared to its traditional shed rivals,” comments George Scott, Conlumnio Senior Consultant. “Indeed, B&Q has been posting far lower growth as it struggles to draw in appeal in footfall for lighter purchases, while Homebase remains a work in progress as it continues to consolidate its estate, reposition itself as a more mid-market lifestyle retailer and, more recently, give its leadership fresh legs.”