Travis Perkins revenues soar as construction sector bounces back

ravis Perkins has reported booming sales after completing its Wickes demerger and amid a bounce back in the construction sector.

The building materials group increased its full year profit guidance today on the back of seeing revenues for the six months to July up nearly 38% on the same period in 2020, to £2.3 billion.

Adjusted operating profits jumped to £164 million, compared to £17 million a year ago.

The FTSE 250 firm, which demerged from the DIY chain Wickes in April, has long said the demerger will allow it to focus on construction trade sales and ensure “faster decision making”. The company also sold its heating and plumbing business to H.I.G. Capital in May.

Travis Perkins said that is managing to navigate a “challenging period of inflation and materials shortages”. Like firms across sectors, the company is facing soaring prices for some key materials, and ongoing logistics cost inflation.

Chief executive, Nick Roberts, said he is “cautiously optimistic around the outlook for the business”.

He pointed to the “construction sector’s ongoing recovery”, and said that “while some uncertainty still remains, the end markets for our trade-focused businesses remain robust”.

Shares fell 1.36% on Tuesday morning.