Travis Perkins meets earnings expectations
Company sees volatile conditions persisting in the construction sector in the short term
Travis Perkins, Britain's biggest supplier of building materials, met forecasts with a 2.1 per cent rise in 2012 earnings and said there were signs growth would return to its markets in 2013.
"Whilst there are indications, for the first time in a while, that growth will return to our markets later this year, we anticipate volatile conditions will persist in the short term, further troubling weaker operators," chief executive Geoff Cooper said.
Cooper added that though overall market volumes for 2013 will be lower than 2012, the rate of decrease will be smaller at around 1-2 per cent.
While both construction and consumer markets have been weak in the economic downturn Travis Perkins has performed relatively well, winning market share from rivals and benefiting from the synergies of its 2010 purchase of plumbing and heating firm BSS.
The firm, whose brands also include City Plumbing, Keyline, Tile Giant and Wickes, made adjusted earnings per share of 95.1 pence in 2012.
That was in line with analysts' consensus forecast and up from 93.1 pence in 2011.
Underlying pretax profit was up 1.1 per cent to £300 million pounds (€347 million) in 2012 on revenue up 1.4 per cent at £4.85 billion and sales at branches open over a year down 1.4 per cent.
Travis Perkins, which cut its net debt by £155 million pounds to £452 million pounds, is paying a full year dividend of 25 pence, up 25 per cent.
Shares in the firm, up 34 per cent over the last year, were down 1.5 per cent to 1287.5 pence at 08.15 am.