Travis Perkins PLC : Investing for sustainable ...
27 November 2014
Travis Perkins plc
Investing for sustainable growth - Travis Perkins Operational Briefing 2014
Travis Perkins is hosting a capital markets day for institutional investors and investment research analysts from 10.30am today in London. The event will comprise presentations from Divisional management teams supported by John Carter (Chief Executive) and Tony Buffin (Chief Financial Officer).
Presentations will cover the strategic ambitions of the Group and plans for the businesses within the Group. Key aspects of the plans continue to be accelerating innovation of customer propositions; expanding the network and intensifying use of space; exploiting scale benefits; and prioritising investments throughout the portfolio.
The table below summarises the Group's financial targets and guidance that will be discussed during the day:
| Ambition | Measure |
| Like-for-like sales growth outperformance across the Group | 1% - 3% p.a. |
| Operating margin improvement prospects | |
| sustain sector leading |
| good growth |
| good growth |
| good growth |
| EBITA growth p.a. over the medium term | Double digit |
| 2015-16 annual capital expenditure* | £170 - 230 million |
| Lease adjusted ROCE over the medium term | add 200 - 300 basis points |
| Progressive dividend with cover range for 2014 onwards | 2.5x - 3.25x |
*The increased range for capital expenditure in 2015-2016 principally relates to potential freehold site purchases and will largely depend on opportunities available in the market.
Underlying earnings guidance for 2014 remains unchanged, however a number of exceptional charges and income items are expected to be recognised. These exceptional items relate to a store closure, the disposal of Rinus Roofing and the reconfiguration of the Plumbing & Heating branch and distribution centre network. The net exceptional charge in 2014 is expected to be around £20 million, with a £2 million expected net cash outflow.
John Carter commented: "We set out our plans for the Group a year ago and I am pleased to report that these plans are progressing well. The markets in which we operate have performed largely in line with our expectations. The response from customers to our improving propositions and our early investments has been encouraging. This gives us confidence to continue our investment programme and accelerate the launch of our heavyside range centre network through 2015 and to exploit the Group's UK scale advantage. We remain confident in the outlook for our markets and our ability to deliver sustainable market share gains."
The event will not be webcast and there will be no discussion on current trading conditions. The presentation material and video content will be made available online at http://ir.travisperkinsplc.co.uk/.
Enquiries
John Carter, Chief Executive
Tony Buffin, Chief Financial Officer
Matt Johnson, Investor Relations Director
Travis Perkins plc | +44 1604 683 058 | +44 7584 491 284 | investor.relations@travisperkins.co.uk
Media enquiries
David Allchurch / Katharine Wynne
Tulchan Communications | +44 207 353 4200
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Travis Perkins PLC via Globenewswire
Latest directors dealings
- 6 hours ago Luceco
- 6 hours ago Helios Towers
- 7 hours ago Wise Class A
- 7 hours ago EDX Medical Group Plc
- 7 hours ago Naked Wines