Travis Perkins share price underpinned by branch expansion plans

Travis Perkins’ (LON:TPK) share price has edged around one percent higher today, after the UK’s largest distributor of building materials announced plans to open 400 new branches in a £150-£200 million per annum investment programme over the next four years. The group, which currently has around 2,000 outlets across 17 trading brands, said that the move would result in 4,000 new jobs, adding to the 1,500 created last year.

The recruitment programme will see a mix of 170 apprenticeships for younger people starting out every year, 200 branch managers and assistant managers a year, as well as a number of IT professionals and supply chain specialists. The majority of the jobs will be outside London and the South East and across the company’s Travis Perkins, Wickes, Toolstation and Benchmarx chains. The new branches will be supported by distribution warehouses to be opened or extended in Warrington, Leeds, Northampton, Coventry, Cardiff and Tilbury.
In its statement today, Travis Perkins noted that it had benefited from the government’s help-to-buy mortgage-guarantee scheme aimed at first-time buyers, which has been running for two years. The firm also cited the recent overhaul of the stamp duty regime and improving housing affordability in the wake of lower unemployment and rising real wages.
Chief executive John Carter commented: “Travis Perkins’ ability to create 4,000 new jobs reflects confidence in our businesses, the markets we operate in and the UK economy as whole. This confidence is supported by a number of actions taken by the Government over the past two years, including the new Help to Buy ISA announced yesterday, that are continuing to support construction activity and improvements in consumer confidence.”
Chancellor George Osborne welcomed Travis Perkins’ plans and reaffirmed the government’s support for the construction sector. He was quoted in the Travis Perkins statement as saying: “Our long term economic plan is all about backing successful British businesses like Travis Perkins. Their decision to create 4,000 new jobs and make significant investments is a vote of confidence in the UK.”
As of 13:44 GMT, Thursday, 19 March, Travis Perkins plc share price is 1,996.50p.