Travis Perkins Plc 2006 Preliminary Results

Travis Perkins Plc 2006 Preliminary Results show revenue up 7.9% to GBP2,849m and adjusted operating profit up 3.7%.

Travis Perkins Plc, a leading supplier to the UK construction industry, has today announced a set of excellent preliminary results.

Turnover in 2006 increased by 7.9% to GBP2,849m with an operating profit of GBP278m, up 3.7%.

Geoff Cooper, Chief Executive, comments: "In 2006 we made considerable progress in the development and performance of our business".

"Our financial results are ahead of original expectations for the year, with further expansion of our branch network and satisfactory integration of the Wickes business".

The Travis Perkins Group which includes some of the leading brands in the UK construction industry - Travis Perkins, Keyline, City Plumbing Supplies, CCF, Benchmarx and Wickes - now has 1,038 branches across the UK.

The trading brands that form the Travis Perkins Group performed well in 2006 and took advantage of a gradual strengthening in the trade markets as the year progressed.

Travis Perkins added a net 26 branches during the year to its network and traded from 559 branches at the year end.

Around 70% of this expansion was from brownfield sites.

The Travis Perkins brand operates through four geographically based businesses and represents about 60% of group profits.

2006 saw major branch refurbishments at a number of branches including Hemel Hempstead, Ramsgate, Glasgow Muirend, Sunbury and Brackmills in 2006.

Twenty-four projects are planned for 2007 with an incremental capital spend relative to 2006 of around GBP30m.

In the last 12 months, the brand added a net four toolhire outlets taking the total to 165 in the group.

Keyline, the heavy side merchant added three branches to its network, finishing the year with 76 branches.

Following a detailed profiling of its market, an increased focus on both depth and breadth of specialist stock range and a concentration on major civil engineering customers, sales performance has been increasingly successful.

City Plumbing Supplies had a year of recovery and consolidation.

A combination of strong top line growth and an absolute decrease in costs has led to a strong recovery in profits.

Last year saw one new branch open and two small units consolidated.

However, the plan is to step up the rate of expansion in 2007, reflecting confidence that the business is very much back on track.

CCF, the dry-lining ceilings and insulation specialist, had another excellent year reflecting the strength of the company's major contractor relationships.

Strong like-for-like sales and further improvement in margins has resulted in profits in the fourth year after acquisition being in excess of three times the pre-acquisition level.

After adding two branches in 2006 to end the year at 25 outlets, a further five were added in early 2007 following the acquisition of Passmore, based in London.

Benchmarx the specialist kitchen and joinery business for the trade, made a good start headed up by Rob Gladwin, previously Wickes Retail Director.

The first branch opened at Croydon in July and six further branches were added in 2006.

Benchmarx serves a market with attractive returns and growth characteristics.

It is planned to have 20 branches open by the end of 2007.

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