Trading Statement

Travis Perkins PLC 04 July 2005 4 July 2005 Travis Perkins PLC Interim pre-close Trading Statement Travis Perkins PLC, the leading UK builders' merchant and DIY retailer, today issued the following trading statement for the first six months of 2005: Overall group turnover for the first six months, including the effect of the acquisition of Wickes, was up by 41%, with like-for-like ('LFL') turnover per trading day (i.e. after adjusting for one extra trading day in 2004) lower by 0.5%. Progress on combining the Travis Perkins and Wickes businesses is running ahead of expectations. In the Travis Perkins builders' merchant business (65% of total merchanting turnover) for the first six months of 2005, total turnover per trading day was up by 6.2% with LFL turnover per trading day up by 1.6%. In this period, our specialist merchanting businesses (35% of total merchanting turnover), comprising Keyline, CCF and City Plumbing, saw total turnover per trading day lower by 1.3%, and LFL turnover per trading day lower by 4.1%, reflecting mainly weaker showroom sales in City Plumbing. The sharp slowdown in consumer spending from February has had some impact on volumes in the trade market, particularly in RMI, in the second quarter. The more consumer-related RMI activity, especially in plumbing and heating, was affected, although our business in commercial sectors and sectors related to government spending remained robust. The group has taken further action in merchanting to boost productivity - up by 2% in the first half - and gain market share, while protecting gross margins - slightly up in the first half. Buying benefits and other synergy gains from the work to integrate Wickes into the group are running ahead of the group's original expectations despite lower base volumes. Synergy projects outside the buying area are now being accelerated to produce further cost reductions. The group's earlier prediction for a gradual recovery in the DIY market has been borne out by experience in the second quarter, although the improvement has been patchy and slower than anticipated. At Wickes, which was acquired by the group on 11 February 2005, total turnover for the 26 week period to 26 June 2005 was down by 1.7%, with LFL turnover down by 4.9%. LFL turnover of core products (84% of Wickes' sales) were down by 4.2%. The LFL performance, whilst showing monthly variations, continues to indicate an improved trend from the weakest position experienced, in February 2005, and latest data available shows Wickes gaining market share from national competitors. The home delivered showroom market, which accounts for around 16% of Wickes' sales, continues to be soft as consumers rein back expenditure on ' larger ticket' items. Turnover in this category was off 8.4% on an LFL basis for the 26 week period. Since the start of 2005, the group has added a net 34 new branches in addition to 172 acquired Wickes stores. The group now has 957 trading locations in the UK. While continuing to invest steadily in the growth of both the merchanting and retail businesses, group net borrowings are running slightly lower than planned levels due to tight control of working capital and capital expenditure. We expect the trading environment for the remainder of 2005 to continue to be challenging. Whilst we have taken prompt action to reduce costs this will not fully offset the impact of the current trading environment, and our expectations have been moderated accordingly. However, we expect to grow profits in merchanting in 2005 as well as add profits and synergies from the acquisition of Wickes. Enquiries: Geoff Cooper, Chief Executive Paul Hampden Smith, Finance Director Travis Perkins PLC +44 (0) 1604 683131 David Bick/Trevor Phillips Holborn Public Relations +44 (0) 207 929 5599 ends This information is provided by RNS The company news service from the London Stock Exchange XLLBEDBFBBB
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