LONDON, April 24 Travis Perkins,
Britain's No. 1 supplier of building materials, posted a strong
rise in first quarter sales, benefiting from the upturn in
building activity and the strength of housing transactions.
The firm said on Thursday sales at depots and stores open
over a year increased 12.7 percent in the fiscal first quarter
of 2014, driven by market share gains and volume growth but also
helped by very weak comparative numbers in 2013 when trade was
hit by unseasonably cold weather.
Like-for-like sales in Travis' general merchandise division
rose 16.6 percent, were up 6.9 percent in the consumer division,
which includes the Wickes home improvement chain, and increased
13.2 percent in the plumbing and heating business.
Travis said sales price deflation experienced in 2013
dissipated in the first quarter of 2014, albeit not all of the
cost price increases from manufacturers were fully passed
through to customers.
British house prices unexpectedly picked up speed in March
and sales reached a six-year high, a survey showed earlier this
month, suggesting the market is still firmly on the rise.
"All of our businesses recorded strong sales growth in the
first quarter of 2014 and lead indicators for our different
markets are encouraging ... and we remain on course to meet our
targets set out in February," said Chief Executive John Carter.
"We are confident that the plans we have in place will
support our drive to outperform our markets, improve earnings
and ultimately increase return on capital."
Shares in Travis Perkins, which entered the FTSE 100 index
of Britain's largest companies last June, have increased by 25
percent over the last year.
They closed at 1,832 pence on Wednesday, valuing the
business at 4.53 billion pounds ($7.6 billion).
($1 = 0.5960 British Pounds)
(Reporting by James Davey; Editing by Neil Maidment)