Travis Perkins share price: Company reports robust annual performance

on Feb 26, 2014
Updated: Apr 9, 2020
Listen, Wednesday, February 26: Travis Perkins (LON:TPK), the UK’s largest building material supplier, has posted an increase in annual revenue and profits as demand for housing continued to grow on the back of a recovering UK property market.

Updating the market on its annual performance, Travis Perkins said in a statement today that it in the year ended December 31, 2013 the company had delivered a 12.4 percent rise in adjusted profit before tax, which came in at £321 million. Profit after tax increased 6.4 percent year-on-year to £265 million. The group’s revenue climbed to £5.15 billion, with annual growth of 6.3 percent, or five percent on a like-for-like basis.

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The board recommended a final dividend of 21p per share for 2013, giving a total dividend for the year of 31p, an increase of 24 percent over 2012.
Travis Perkins CEO John Carter said 2013 was another good year for the company and the momentum in the second half of last year has continued into 2014.
Travis Perkins suffered a fall in profit in the first half of 2013 due to cold weather. After the slow start to the year, better weather conditions combined with an increasing level of confidence in the building industry translated into improved sales from April, the company said. The trend continued through the year owing in part to the UK government’s Help to Buy scheme, but also to the sustained increase in housing transactions and house prices. By the final quarter of 2013, all of the company’s divisions were experiencing good volume growth, the company revealed.

“The Group is well placed to benefit from the upturn in UK building activity and in particular the strength of housing transactions,” Carter said. In December, the CEO detailed Travis Perkins’ strategic ambitions. He targeted a continuing outperformance of the wider market and “double digit” underlying earnings growth over the medium term (Travis Perkins share price: Group targets ‘double digit’ earnings growth).

Looking ahead, the company said today: “The outlook for 2014 is encouraging, however the Board will continue to monitor the market carefully for any sign that the recovery may be slowing.”
Despite the generally positive view, Travis Perkins sounded a cautionary note, saying that “it is also cognisant that stimulus measures may be withdrawn and that retail spending remains fragile with customers looking for value when deciding to invest in their homes.”

**Travis Perkins share price declines**
Travis Perkins, which entered the FTSE 100 index of Britain’s largest companies in June, has been trading lower so far today. As of 08:19 UTC, the group’s share price — which has risen 55 percent over the last year — was 1.17 percent down at 1,940.00p.
According to AnalystRatingsNetwork data, two research analyst have a ‘sell’ rating on the construction materials supplier, 11 have it as a ‘hold’, seven have it as a ‘buy’ and one calls it a ‘strong buy. The stock’s average rating is ‘hold’ with a consensus price target of 1,762.52p.
**As of 08:21 UTC, buy Travis Perkins shares at 1,939.00p.**
**As of 08:21 UTC, sell Travis Perkins shares at 1,934.00p.**
Trade stocks with Hargreaves Lansdown from £5.95 per deal.
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