LONDON Dec 3 Travis Perkins, Britain's
No. 1 supplier of building materials, said it would continue to
outperform the wider market, targeting "double digit" underlying
earnings growth over the medium term under new chief executive
Carter, the current deputy chief executive who will succeed
Geoff Cooper in the top job in January, on Wednesday detailed
Travis Perkins' strategic ambitions at a capital markets day for
investors and equity analysts.
Shares in Travis Perkins, which entered the FTSE 100 index
of Britain's largest companies in June, have risen 64 percent so
far this year, helped by an increase in construction activity on
the back of government initiatives to stimulate the housing
Carter is targeting like-for-like sales growth
outperformance of 1-3 percent across the group, with "sector
leading" operating margin growth in its general merchandising
business and "good growth" in its plumbing and heating,
contracts and consumer (Wickes and Tile Giant) divisions.
He also slated capital expenditure of 130-170 million
($213-278 million pounds) in the 2014-15 year and dividend cover
of 2.5-3.25 times earnings from the 2014-15 year onwards.
The new CEO wants to accelerate innovation in the firm's
formats and exploit its scale.
"We have worked very hard over the past few years to ensure
we have the right portfolio of businesses to continue to
outperform the market," said Carter.
The group currently trades from over 1,800 outlets across
The stock was down 3 percent at 1,727 pence at 1407 GMT,
valuing the business at 4.2 billion pounds.