Trading Statement

Travis Perkins PLC 15 October 2007 TRAVIS PERKINS PLC 15 October 2007 TRAVIS PERKINS PLC Trading update - Continued momentum The Group is hosting an Investor and Analyst visit in London today and provides the following trading update: Despite early signs of the expected reduction in market growth, our business continues to make good progress in the second half of 2007, with further gains in market share, an acceleration of network expansion and improved profitability and returns. In total, our group turnover to the end of September is up 11.3% compared to the equivalent period in 2006. Overall, trading continues to be in line with our expectations with both the merchanting and retailing businesses performing well. For the first nine calendar months of 2007, total turnover in our merchanting division is up by 12.5%, with like for like turnover per trading day up by 9.2%. Total turnover in the general merchanting business is up by 11.7% with like-for-like turnover per trading day up by 9.4%. For this period, our specialist merchanting business has total turnover up by 14.1% and like-for-like turnover per trading day up by 8.9%. These increases represent gains in like-for-like, organic and total market share as our businesses are increasingly recognised by customers as a better place to get building materials. Trading at Wickes continues to progress in line with our expectations. Total turnover for the 39-week trading period ended on September 29 was up by 8.5%. For this period, like-for-like sales per trading day were up by 5.7% with core products up by 8.1% and showroom sales lower by 6.4%. Our retailing business has also grown its like-for-like and total market share in this period, with this rate of gain increasing in the second half. As expected, gross margins are slightly below the comparable period in 2006, mainly reflecting continued price competition in key value lines. In the nine months to the end of September we expanded our business and now trade from 1065 locations. In this period we added to our network a net 40 new merchanting branches and 3 new Wickes stores, increasing Wickes' selling space by 5.6%. In addition, we recently entered into contracts to acquire a further 7 new retail outlets which are expected to open before the key Easter trading period in 2008. Our pipeline of further opportunities for network expansion remains good and we continue to examine options for entering adjacent channels for building material distribution. The group continues to exercise tight control over costs and operational cash flow remains good. In the last 2 months £39m has been spent on shares for both past and current share schemes. This provides a hedge against market movements between option and exercise price. Whilst lead indicators are pointing to a slowing of market growth, in 2007 we have increased the resilience of our business to variations in market growth through programmes designed to continue gains in both like-for-like and total market share and drive further gains in productivity. With these, and our traditional strengths of cost vigilance and tight cash management, we are confident of making further progress in 2008 and beyond. Enquiries: Geoff Cooper, Chief Executive Travis Perkins PLC Tel: +44 (0)1604 683 222 Paul Hampden Smith, Finance Director Travis Perkins PLC Tel: +44 (0)1604 683 222 David Bick/Mike Feltham/Mark Longson Square 1 Consulting LTD Tel: +44 (0)20 7929 5599 This information is provided by RNS The company news service from the London Stock Exchange
UK 100

Latest directors dealings