Big losses for the share price of builders’ merchants Travis Perkins this morning, after the company posted full year results to 31st December. Whilst there were some pockets of cheer – the Toolstation UK business saw adjusted profits up 48% after robust sales growth and margin improvement – elsewhere the cheer was in short supply. Group revenues were down 4%, the £161m operating profit posted a year ago was as good as wiped out and the return on capital employed fell from 6.9% to 5.4%. Management also highlighted a series of structural issues that needed attention to better cater for the needs of customers and suppliers, but the promise of being well positioned for the recovery when it arrives failed to galvanise any support. The Travis Perkins share price was down more than 10% shortly after the open.
The supplier of energy solutions for a greener planet published a note this morning highlighting a supply services agreement with MAC2 regarding the production of lower carbon fuels ahead of marine trials which are due to start imminently. This is an early stage announcement and one that will hopefully mature into a longer term partnership but investors have been cheered nonetheless. The Quadrise share price was up around 5% in early trade.
A Q2 trading statement from convenience food manufacturer Greencore – whose portfolio includes supplying sandwiches to Marks & Spencer - was issued this morning. This noted strong volume and revenue momentum, with profit conversion being ahead of management expectations. That’s resulted in an upgrade to full year profits which are now forecast to land between £112m-£115m and comes at a time when the company is in the midst of a takeover battle for rival Bakkavor. The market found cause for cheer off the back of this news, with the Greencore share price sitting just over 3% higher by 8.30am.
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Travis Perkins plc - full year results - - Travis Perkins (TPK)
