Travis Perkins Group has issued an optimistic trading update covering sales figures by quarter for the first half of 2020.
The trading statement notes that Group revenue for the first six months of 2020 was £2,780 million, down 20% on the same period in 2019 (£3,484 million), due to the significant impact of the COVID-19 pandemic and resulting lockdown.
However it adds that, since the most recent company update in mid-June, its merchanting businesses have continued to recover well with the improvement in the repair, maintenance and improvement (RMI) markets, and infrastructure spending proving to be more robust than the new housebuilding and commercial construction markets.
Toolstation and Wickes continue to benefit from buoyant DIY sales, with Wickes in particular, achieving strong sales growth in June following the re-opening of its stores to customers in late May. A significant growth in core DIY categories has more than offset the slower recovery in kitchen and bathroom installations.
Despite the closure of 165 branches in June, representing around 8% of the Group’s overall estate, Travis Perkins has continued to experience an improving trend on total sales volumes so far in July, with is close to 2019 levels.
Nick Roberts, chief executive officer of Travis Perkins, said: “Since the trading update on 15 June, the business has continued to recover well with good demand from RMI and infrastructure markets offsetting ongoing challenges in the newbuild and commercial construction sectors.
“We remain cautious as to the near-term headwinds facing our business and the wider economy, nevertheless the decisive actions we have taken to manage our cost base mean that we are well placed to continue to service our customers, support our colleagues and generate value for our shareholders.”
