Travis Perkins full-year profit beats; shares rise

FILE PHOTO: A worker stacks bricks at the Vauxhall depot of building material supplier Travis Perkins in London, Britain, October 25, 2013. REUTERS/Neil Hall/File Photo

(Reuters) - Travis Perkins Plc on Tuesday reported a better-than-expected pretax profit for the full year driven by cost cuts, sending shares of Britain’s largest building materials group up more than 10 percent.

The company’s adjusted profit before tax rose 1.2 percent to 347 million pounds for the year ended Dec. 31, beating analysts’ average estimate of 334.4 million pounds, according to IBES data from Refinitiv.

Travis said in December it planned to sell its plumbing and heating unit, and could divest its Wickes home improvement chain in the future to focus on the company’s more profitable units.

However, the company said on Tuesday it expects to post flat overall adjusted operating profit for 2019, compared to last year.

In outlook terms, the company is pointing to stable profits over the year given the uncertain economic backdrop, Peel Hunt analysts said.

“Whilst we remain positive about the long-term outlook for our end markets, we are planning for uncertain market conditions to continue in the near term”., Chief Executive Officer John Carter said.

Revenue for the full year grew 4.8 percent to 6.74 billion pounds.

Reporting by Sangameswaran S in Bengaluru; Editing by Rashmi Aich and Shounak Dasgupta