Interim Results

Travis Perkins PLC
08 September 2003



8 September 2003


                  OPERATING PROFIT BEFORE AMORTISATION OF GOODWILL
                         UP 25.4 PER CENT AT £94.8 MILLION

               PRE-TAX PROFIT UP 22.4 PER CENT AT £ 80.8 MILLION

               DIVIDEND PER SHARE INCREASED BY 24.6% TO 7.6 PENCE


                                                                    6 Months        6 Months         Increase
                                                                     30 June         30 June
                                                                        2003            2002
                                                                          £m              £m                %

Turnover                                                              816.6           663.8              23.0
Operating profit before amortisation of goodwill                       94.8            75.6              25.4
Operating profit after amortisation of goodwill                        87.5            70.2              24.6
Profit before taxation                                                 80.8            66.0              22.4
Profit after taxation                                                  53.5            43.8              22.1
Basic earnings per ordinary share                                      47.5p           39.1p             21.5
Adjusted earnings per ordinary share before
  amortisation of goodwill and profit on sale of
  properties                                                           53.8p           43.5p             23.7
Interim dividend per share                                              7.6p            6.1p             24.6


Frank McKay, chief executive, said:

'First half performance has been driven by the combination of excellent
weather-related trading, particularly in the spring period, generally good
levels of consumer confidence and a solid contribution from acquisitions and
internal growth. We expect to make good progress during the rest of 2003.'



Enquiries:

Frank McKay                                           Paul Hampden Smith
Chief Executive                                       Finance Director
Tel: [phone]                                    Tel: [phone] (mobile)
Tel: [phone] (mobile)

Issued on behalf of Travis Perkins plc by Tavistock Communications Limited
(contact: Keith Payne, tel: [phone])



Chairman's Statement

I am pleased to report pre-tax profits for the six months ended 30 June 2003 of
£80.8m, an increase of 22.4 per cent over the £66.0m earned in the same period
of 2002.

Basic earnings per share rose 21.5 per cent to 47.5 pence from 39.1 pence a year
ago.

The board has declared an interim dividend of 7.6 pence per share, an increase
of 24.6 per cent on the 2002 interim dividend of 6.1 pence.  We currently intend
that the final dividend will not be less than 16.8 pence, a 25 per cent increase
for the full year.  The decision to increase the payment ratio reflects the cash
generative nature of our business as well as confidence in its future prospects
and ability to support both acquisitions and capital expenditure from existing
resources.

We remain committed to our strategy of growing the business both organically and
by acquisition.  Although we have no immediate intention of doing so, we
recognise that from time to time it may be expedient for us to utilise the
authority given to us by shareholders to buy back our shares.  Any purchases
would only be made with the intention of enhancing earnings per share.

Operating cash flows at £122.5m were 19.3 per cent higher than in the first half
of 2002.  Free cash flow (as shown in note 9) was up 7.0 per cent at £79.1m
against £73.9m.

Part of the free cash was used to fund capital expenditure and the acquisition
of new businesses, which together cost £30.1m.

As a result of net debt being reduced in the period by £49.0m to £110.7m,
gearing (as shown in note 8) at 30 June 2003 fell to 26.2 per cent from 40.4 per
cent at 31 December 2002.

Net interest payable was covered 20.6 times by operating profit before goodwill
amortisation, compared with 17.6 times for the first half of 2002.

First half performance has been driven by the combination of excellent
weather-related trading, particularly in the spring period, generally good
levels of consumer confidence and a solid contribution from acquisitions and
internal growth.  Low interest rates are likely to continue to support activity,
though recent housing transaction trends are down year on year.  However, even
allowing for this and for the likelihood that growth from acquisitions will be
less in the second half than in the first, we expect to make good progress
during the rest of 2003.


T. E. P. Stevenson
Chairman
5 September 2003



Chief Executive's Review

Results

Group operating profit before amortisation of goodwill of £7.3m (2002 £5.4m)
rose 25.4 per cent to £94.8m in the first half of 2003 from £75.6m in the
comparable period of 2002.  Sales benefited from continued investment in branch
upgrades, our ongoing acquisition programme and the further opening of
brownfield sites.  Like for like sales per working day were up 4.6 per cent,
with overall sales rising 23.0 per cent to £816.6m from £663.8m.  Return on
sales increased to 11.6 per cent from 11.4 per cent, primarily as a result of
our focus on continuous improvement in all aspects of the business.

City Plumbing Supplies ('CPS') and Commercial Ceiling Factors ('CCF'), acquired
in the second half of 2002, performed well.  Returns in both companies exceeded
expectations, helped by strong procurement gains and the economies of scale
achieved through being part of the Travis Perkins group.  CPS added a further
six branches in the first half of 2003.

Developments

The Travis Perkins network added sixteen new branches in the first half.  These
comprised eight acquisitions and eight brownfield openings.  Two branches of the
enlarged CCF/Atkins group were consolidated as part of the post-acquisition plan
to reduce overheads whilst retaining the customer base.

On 31 July the 53 branches of the Jayhard plumbing and heating business were
acquired for £26.5m.  These add to the strength of our specialist plumbing and
heating operation, which including Jayhard now has 149 branches nationwide, and
complement the group's additional plumbing and heating presence in over 400
generalist branches.

A further five Travis Perkins and four City Plumbing branches have been added
since the half -year.  These, together with three consolidations and the Jayhard
acquisition, bring the present total to 681 branches.

Branch Improvements

The programme of branch improvements continued during the first half as major
refurbishment projects were carried out at a number of branches, including CCF
at East Kilbride, Keyline at Atherton and Bradford and Travis Perkins at
Leamington, Accrington, Alexandra Palace and Scunthorpe.  In addition, major
projects were completed at the new Travis Perkins brownfield sites at Daventry,
Coventry, Marlborough and Bodmin. Lightside sales continued to develop well at
the Keyline branches refurbished during 2002 while our landscaping products
generated encouraging growth over last year.

Information Technology

One of our continuing initiatives is to support improvements in customer service
at the trade counter.  A significant software upgrade has now been successfully
introduced to all branches, making sales order processing more flexible and
improving the speed of operation of our point of sale systems.

Customer Service

KPI (key performance indicator) tracking systems launched in the second half of
2002 have been successful in enhancing customer service levels.  Overall
performance has improved on most measured KPI's.  Customer service groups have
been set up at all branches and these groups receive regular formal and informal
feedback from customers in a constant drive to obtain optimum levels of
efficiency.

Health and Safety

The company is equally committed to achieving and maintaining high standards in
health and safety, evidenced by the fact that during the first half of the year
accident frequency rates fell by more than 10% compared with the first half of
2002.  Our health and safety practices and procedures are now well established
throughout the business, with training and development, widespread use of
personal protective equipment and ongoing measurement and review all regular
features of a disciplined approach to this important issue.

Modifications to our commercial vehicle and forklift designs, together with the
ongoing introduction of traffic management systems in our larger branches, are
further indications of our determination to make Travis Perkins an even safer
place in which to work.

Environment

Timber procurement has been another focus of attention.  Further progress has
been made in the percentage of products procured from sources certified to
recognised forestry standards.  In particular, we have introduced a number of
hardwood plywood and solid hardwood products certified to Forest Stewardship
Council ('FSC') standards.  Chain of custody accreditation for both FSC and Pan
European Forest Certification ('PEFC') schemes was achieved for more than 40
branches during the first half of 2003.  This will be increased to give national
coverage by the end of the current year.  Progress also continues to be made on
our other environmental improvement programmes.

Future

There continues to be significant scope for profitable growth through the
acquisition of regional groups and independent merchants, the further expansion
of brownfield site developments and the greater efficiencies generated by our
ongoing improvement programmes.  The acquisition of the Jayhard group of
branches further consolidates our already strong position in the plumbing and
heating market.  At the same time we are confident of our ability to continue to
identify important opportunities for growth across all the areas in which we
specialise.

Staff

On behalf of the board, I would like to thank all employees for their
contribution to a strong first half performance.


F. J. McKay
Chief Executive
5 September 2003




Consolidated Profit and Loss Account

                                                                      Six months      Six months            Year
                                                                         30 June         30 June          31 Dec
                                                                            2003            2002            2002
£m                                                                    (Reviewed)      (Reviewed)       (Audited)

Turnover                                                                  816.6           663.8         1,417.5

Operating profit before amortisation of goodwill                           94.8            75.6            158.2
Amortisation of goodwill                                                   (7.3)           (5.4)          (12.1)

Operating profit after amortisation of goodwill                            87.5            70.2           146.1
Profit on sale of properties                                                0.2             0.5             1.2

Profit on ordinary activities before interest
  and taxation                                                             87.7            70.7           147.3
Net interest payable                                                       (4.6)           (4.3)           (8.9)
Other finance costs                                                        (2.3)           (0.4)           (0.8)

Profit on ordinary activities before taxation                              80.8            66.0           137.6

Tax on profit on ordinary activities                                      (27.3)          (22.2)          (45.8)

Profit on ordinary activities after taxation                               53.5            43.8            91.8
Dividends paid and proposed                                                (8.6)           (6.8)          (21.9)

Retained profit transferred to reserves                                    44.9            37.0            69.9

Earnings per ordinary share
Basic                                                                      47.5p           39.1p           81.9p
Diluted                                                                    46.8p           38.5p           80.7p
Adjusted (before amortisation of goodwill and profit
  on sale of properties)                                                   53.8p           43.5p           91.6p

Dividend per ordinary share                                                 7.6p            6.1p           19.5p






Consolidated Balance Sheet

                                                                          As at           As at           As at
                                                                        30 June         30 June          31 Dec
                                                                           2003            2002            2002
£m                                                                   (Reviewed)      (Reviewed)       (Audited)

Fixed assets
Tangible assets                                                          270.4           237.0           258.2
Intangible assets - goodwill                                             247.8           187.2           249.9
Investments                                                                4.6             5.0             4.6
                                                                         522.8           429.2           512.7

Current assets
Stocks                                                                   159.9           140.6           152.1
Debtors                                                                  295.9           230.1           250.4
Properties held for resale                                                 1.1             1.4             1.0
Short term investments - cash deposits                                    37.0               -            30.0
Cash at bank and in hand                                                  16.0            65.9               -
                                                                         509.9           438.0           433.5

Creditors: amounts falling due within one year                          (416.4)         (334.2)         (300.6)

Net current assets                                                        93.5           103.8           132.9

Total assets less current liabilities                                    616.3           533.0           645.6
Creditors: amounts falling due after more
  than one year                                                          (75.1)          (75.0)         (150.3)
Provisions for liabilities and charges                                   (15.1)          (11.2)          (14.1)

Net assets excluding pension deficit                                     526.1           446.8           481.2
Pension deficit                                                         (103.2)          (38.6)          (85.8)

Net assets including pension deficit                                     422.9           408.2           395.4

Capital and reserves
Called up share capital                                                   11.3            11.2            11.3
Share premium account                                                     66.7            62.6            65.7
Revaluation reserves                                                      31.2            31.6            31.2
Profit and loss account                                                  313.7           302.8           287.2

Total equity shareholders' funds                                         422.9           408.2           395.4



The interim financial statements were approved by the board of directors on 5
September 2003.


Signed on behalf of the board of directors.
F.J. McKay, P.N. Hampden Smith - Directors





Reconciliation of Movements in Equity Shareholders' Funds
                                                                      Six months      Six months            Year
                                                                         30 June         30 June          31 Dec
£m                                                                          2003            2002            2002
                                                                      (Reviewed)      (Reviewed)       (Audited)

Equity shareholders' funds at 1 January                                   395.4           386.8           386.8
Profit attributable to shareholders of the company                         53.5            43.8            91.8
Dividends                                                                  (8.6)           (6.8)          (21.9)

Retained profit transferred to reserves                                    44.9            37.0            69.9
New share capital subscribed                                                0.8             1.1             2.8
Unrealised surplus on revaluation of investment
  properties                                                                  -               -             0.1
Actuarial losses (net of deferred tax)                                    (18.2)          (16.7)          (64.2)

Net increase in shareholders' funds                                        27.5            21.4             8.6

Equity shareholders' funds at
  30 June / 31 December                                                   422.9           408.2           395.4






Statement of Total Recognised Gains and Losses
                                                                      Six months      Six months            Year
                                                                         30 June         30 June          31 Dec
£m                                                                          2003            2002            2002
                                                                      (Reviewed)      (Reviewed)       (Audited)

Profit attributable to shareholders of the company                         53.5            43.8            91.8
Actuarial losses recognised in the pension schemes                        (25.7)          (23.6)          (91.2)
Deferred tax on pension deficit                                             7.5             6.9            27.0
Unrealised surplus on revaluation of investment
  properties                                                                  -               -             0.1
Total recognised gains and losses relating
  to the period                                                            35.3            27.1            27.7





Consolidated Cash Flow Statement

                                                                   Six months      Six months            Year
                                                                      30 June         30 June          31 Dec
£m                                                                       2003            2002            2002
                                                                   (Reviewed)      (Reviewed)       (Audited)

Net cash inflow from operating activities                              122.5           102.7           179.8

Returns on investments and servicing of finance

Interest received                                                        0.4             0.5             0.7
Interest paid                                                           (4.6)           (4.1)           (9.0)

Net cash flow for returns on investments
  and servicing of finance                                              (4.2)           (3.6)           (8.3)

Taxation
UK corporation tax paid                                                (24.9)          (15.1)          (42.7)

Capital expenditure and financial investment

Purchase of tangible fixed assets                                      (24.9)          (16.7)          (35.4)
Receipts from sales of tangible fixed assets                             1.2             1.9             3.0
Receipts from sale of own shares held                                      -             0.1             0.8

Net cash outflow for capital expenditure
  and financial investment                                             (23.7)          (14.7)          (31.6)

Acquisitions

Purchase of business undertakings                                       (5.7)          (12.1)         (103.3)
Net overdrafts acquired with business
  undertakings                                                          (0.7)              -            (8.2)

Net cash outflow for acquisitions                                       (6.4)          (12.1)         (111.5)

Equity dividends paid                                                  (15.1)          (13.2)          (20.0)

Cash inflow/(outflow) before use of liquid
  resources and financing                                               48.2            44.0           (34.3)

Management of liquid resources

Cash outflow to short term deposits                                     (7.0)              -           (30.0)

Financing

Issue of ordinary share capital                                          0.8             1.1             2.8
New bank loans                                                             -               -            50.0
Repayment of bank loans                                                (25.0)          (25.0)          (25.0)
Repayment of unsecured loan notes                                       (0.6)           (0.1)           (0.7)
Capital element of finance lease rentals                                (0.1)           (0.1)              -

Net cash (outflow)/inflow from financing                               (24.9)          (24.1)           27.1

Increase/(decrease) in cash in the period                               16.3            19.9           (37.2)




Notes to the Interim Financial Statements

1.  Basis of preparation

The interim financial statements have been prepared on the basis of the
accounting policies set out in the group's statutory accounts for the year ended
31 December 2002.

The financial information for the six months ended 30 June 2003 and 30 June 2002
is unaudited and does not constitute statutory accounts as defined in section
240 of the Companies Act 1985.  This information has been reviewed by Deloitte &
Touche LLP, the group's auditors, and a copy of their review report appears on
page 13 of this Interim Report.

Comparative figures for the year to 31 December 2002 have been extracted from
the latest published accounts on which the report of the auditors was
unqualified and did not contain a statement made under section 237(2) or section
237(3) of the Companies Act.  The 2002 accounts have been delivered to the
Registrar of Companies.

2.  Taxation

The tax charge on ordinary activities for the six months ended 30 June 2003 has
been calculated at the rate which it is expected will apply for the year ending
31 December 2003.


3.  Earnings per ordinary share                                   Six months        Six months              Year
                                                                     30 June           30 June            31 Dec
                                                                        2003              2002              2002
      Basic earnings per ordinary share are calculated
      from the following ratio:

         Profit on ordinary activities after taxation          £53.5 million     £43.8 million     £91.8 million

         Average number of shares in issue                       112,693,913       112,090,719       112,177,252

      Diluted earnings per ordinary share are calculated
      from the following ratio:

         Profit on ordinary activities after taxation          £53.5 million     £43.8 million     £91.8 million

         Average number of shares in issue
         including outstanding options                           114,334,774       113,829,918       113,835,241


Adjusted earnings per ordinary share (before amortisation of goodwill and profit
on the sale of properties) are presented in addition to the basic earnings per
ordinary share since, in the opinion of the directors, this presents a better
like-for-like comparison of the earnings of the group between the relevant
periods.



Notes to the Interim Financial Statements

3.  Earnings per ordinary share (continued)

Basic earnings per ordinary share may be reconciled to adjusted earnings per
ordinary share as follows:

                                                         Six months         Six months          Year
                                                             30June            30 June        31 Dec
                                                               2003               2002          2002

Adjusted earnings per ordinary share                         53.8p              43.5p         91.6p
Amortisation of goodwill                                     (6.5)p             (4.8)p       (10.8)p
Profit on sale of properties                                  0.2p               0.4p          1.1p

Basic earnings per ordinary share                            47.5p              39.1p         81.9p


4.  Dividend per ordinary share

The interim dividend of 7.6 pence per ordinary share will be paid on 31 October
2003 to shareholders on the register on 3 October 2003.  The shares will be
quoted ex-dividend on 1 October 2003.

5.  Reconciliation of operating profit to net cash inflow from operating
    activities

                                                        Six months        Six months            Year
£m                                                         30 June           30 June          31 Dec
                                                              2003              2002            2002

Operating profit after amortisation of
  goodwill                                                   87.5              70.2           146.1
Depreciation and other amounts written
  off fixed assets                                           12.9              10.2            21.9
Amortisation of goodwill                                      7.3               5.4            12.1
(Profit)/loss on sale of fixed assets                        (0.1)             (0.3)            0.3
Increase in stocks                                           (6.8)             (5.6)           (0.9)
(Increase)/decrease in debtors                              (44.3)            (13.4)            4.2
Increase/(decrease) in creditors                             66.0              36.2            (3.9)

Net cash inflow from operating activities                   122.5             102.7           179.8





Notes to the Interim Financial Statements

6.  Reconciliation of net cash flow to movement in net debt

                                                          Six months        Six months              Year
                                                             30 June           30 June            31 Dec
£m                                                              2003              2002              2002

Increase/(decrease) in cash in the period                      16.3              19.9             (37.2)
Cash outflow to repay debt                                     25.7              25.2             (24.3)
Cash outflow to increase liquid resources                       7.0                 -              30.0
Non-cash changes                                                  -                 -              (2.1)

Movement in net debt                                           49.0              45.1             (33.6)
Net debt at 1 January                                        (159.7)           (126.1)           (126.1)

Net debt at 30 June / 31 December                            (110.7)            (81.0)           (159.7)



7.  Analysis of increase in cash and debt

                                                       Six months        Six months              Year
£m                                                        30 June           30 June            31 Dec
                                                             2003              2002              2002

Cash at bank and in hand                                    16.0              65.9                 -
Bank overdrafts                                                -              (7.1)             (0.3)
Short term deposits                                         37.0                 -              30.0
Bank loans                                                (150.0)           (125.0)           (175.0)
Finance leases                                              (0.2)             (0.1)             (0.3)
Unsecured loan notes                                       (13.5)            (14.7)            (14.1)

Net debt at 30 June / 31 December                         (110.7)            (81.0)           (159.7)



8.  Gearing
                                                          30 June           30 June            31 Dec
£m                                                           2003              2002              2002

Net debt                                                   110.7              81.0             159.7
Shareholders' funds                                        422.9             408.2             395.4
Gearing                                                     26.2%             19.8%             40.4%



Notes to the Interim Financial Statements

9.  Free cash flow
                                                                    Six months      Six months          Year
£m                                                                     30 June         30 June        31 Dec
                                                                          2003            2002          2002

Net debt at 1 January                                                  (159.7)         (126.1)       (126.1)
Net debt at 30 June/31 December                                        (110.7)          (81.0)       (159.7)

Movement in net debt                                                     49.0            45.1         (33.6)
Net cash outflow for capital expenditure                                 23.7            14.7          31.6
Net cash outflow for acquisitions                                         6.4            12.1         111.5
Loan notes for acquisitions                                                 -             2.0           2.0

Free cash flow included in the financial statements                      79.1            73.9         111.5



10. Post balance sheet event

On 31 July 2003 the company acquired the entire issued share capital of Jayhard
Limited for £26.5 million.



Independent Review Report to Travis Perkins plc

Introduction

We have been instructed by the company to review the financial information for
the six months ended 30 June 2003 which comprises the profit and loss account,
the balance sheet, the cash flow statement, the statement of total recognised
gains and losses, related notes 1 to 10 and the reconciliation of movements in
equity shareholders' funds.  We have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.

This report is made solely to the company in accordance with Bulletin 1999/4
issued by the Auditing Practices Board.  Our work has been undertaken so that we
might state to the company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the company, for our review work, for this report, or for the conclusions we
have formed

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures are consistent with
those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom.  A
review consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed.  A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions.  It is substantially less in scope than an audit
performed in accordance with United Kingdom auditing standards and therefore
provides a lower level of assurance than an audit.  Accordingly, we do not
express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2003.


Deloitte & Touche LLP
Chartered Accountants
Nottingham
5 September 2003


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