Travis Perkins’ comparable sales climb by 17% in the first quarter
- Travis Perkins’ comparable sales climb by 17% in the first quarter.
- The British firm to demerge its home improvement business, Wickes.
- Travis Perkins shares jumped 2% in premarket trading on Thursday.
In an announcement on Thursday, Travis Perkins plc (LON: TPK) said its comparable sales saw an increase in the first quarter on the back of pent-up demand. The company also attributed its hawkish performance to housing transactions that it said were higher in March.
Travis Perkins shares jumped roughly 2% in premarket trading on Thursday and gained another 1% on market open. Including the price action, the stock is now exchanging hands at £16.70 per share. In comparison, it had started the year 2021 at a much lower £13.70 per share. The price action should come in handy if you are interested in investing in the stock market.
Travis Perkins to demerge Wickes by 28th April
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Travis Perkins had plans of demerging its home improvement business, Wickes, in 2020. But the demerger had to be put on hold last year due to the COVID-19 disruptions. The novel flu-like virus has so far infected more than 4.3 million people in the United Kingdom and caused over 127 thousand deaths.
On Thursday, however, the British company confirmed that it is now scheduled to demerge Wickes by 28th April. Following the demerger, chief executive Nick Roberts said, Travis Perkins will be a trade-focused, simplified group.
According to the building-materials retailer, its like-for-like sales in Q1 posted a 17% increase on a year over year basis. Compared to the same period in 2019, its comparable sales came in 12% higher. In its earlier report published in September, the Northampton-based company had recorded a massive 81% decline in H1 profit.
CEO Nick Roberts’ comments on Thursday
Chief Executive Nick Roberts acknowledged that Travis Perkins had started the year 2021 on a positive note. Roberts said:
“The Group has enjoyed an encouraging start to the year with robust like-for-like sales growth across our businesses, underpinned by strong demand in the RMI market. The Merchanting business has maintained the momentum seen in the second half of last year while Toolstation continues to outperform, driven by its convenient and trade-focused proposition.”
In separate news from the United Kingdom, the Hut Group (eCommerce company) said its full-year revenue climbed by 42% as the ongoing health emergency fuelled online shopping.
Travis Perkins performed fairly downbeat in the stock market last year with an annual decline of close to 15%. At the time of writing, the British builders’ merchant is valued at £4.21 billion.