Travis Perkins profits spike 175%

Revenues also increased 24% year-on-year to £4.58bn, driven by ‘enhanced’ customer proposition and recovery in ‘key’ market segments

Travis Perkins plc has revealed its adjusted operating profits surged 175.8% for the year ending 31 December 2021 (FY21), rising year-on-year from £128m to £353m, and up 19% compared to pre-Covid levels.

The group said the performance reflects the work undertaken to enhance its customer proposition through investment in network capacity and technological capability, coupled with the recovery in both the RMI and new house building markets.

Additionally, revenues increased 24% in FY21 to £4.58bn, up from £3.69bn compared to FY20. The revenue performance was reportedly driven by “enhanced” customer proposition and recovery in “key” market segments.

Travis Perkins said it saw another strong year for Toolstation with the UK rollout accelerated and scale building in Europe. During the first half of the year, the group completed the demerger of Wickes, followed by the sale of the Plumbing and Heating business for an enterprise value of £325m, with the proceeds returned to shareholders.

Despite macroeconomic uncertainties remaining, the group revealed that the year ahead is “encouraging” with improved levels of housing transactions, the continued move to hybrid working arrangements and year-on-year growth in new housing developments expected to support volumes in the group’s core trade markets.

Travis Perkins reportedly “remains confident” to make further progress in 2022, with the requirement to expand and decarbonise the UK housing stock offering “significant growth opportunities” for the group.

Nick Roberts, chief executive officer, said: “2021 has been a year of significant operational and strategic progress for the group, completing our portfolio actions and subsequently setting out our ambition to be the leading partner to the construction industry. 

“Whilst the rapidly recovering market created challenges around inflation and product availability, we have navigated them well to deliver an outstanding financial performance.”

He added: “The group has built a strong platform for growth and, given robust end market demand and a positive start to the new year, we remain confident of making further progress in 2022. We continue to develop new capabilities to complement our market leading positions and we see exciting opportunities in both new and adjacent markets.”

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