Sales surge at Travis Perkins as demand for housing climbs

Travis Perkins has seen a “positive” start to the year with the increased appetite for housing seeing total sales rise 13.6% from the prior year, according to its first quarter trading update for the three months to 31 March 2022.

In the merchanting segment, total sales were up by 17.9% with all businesses performing “in line” with expectations. Pricing accounted for approximately two-thirds of the expansion with manufacturer increases continuing to be passed through in an “orderly manner”.

According to the retailer, customer demand remains “robust” across its end markets with larger customer activity underpinned by the backlog of social and economic infrastructure work and ongoing requirement for new housing.

However, the group said “as anticipated”, Toolstation total sales were down 6% in the first quarter, with like-for-like sales down 11.9%, reflecting a “tough” prior year comparator.

Despite this, Travis Perkins is “confident” that business drivers will normalise into the second half of the year as the comparative period passes the lifting of pandemic restrictions.

Nick Roberts, chief executive, said: “The group has had an encouraging first quarter and, although the wider economic backdrop remains uncertain, we are well placed to build on this positive start in the coming months.

“The energy efficiency of the UK’s built environment remains a key focal point for households and politicians alike and the current cost of energy is likely to prompt further demand for improvement in both new and existing buildings.”