Source - Alliance News

- Travis Perkins PLC on Friday retained full-year forecasts despite noting an uncertain inflationary environment ahead.

The builders' merchant said sales in the three months to the end of March were up 14% year-on-year, driven by its Merchanting segment which recorded 18% growth.

‘Pricing accounted for approximately two-thirds of the growth with manufacturer increases continuing to be passed through in an orderly manner. Customer demand remains robust across our end markets,’ it said.

Meanwhile, Toolstation total sales were down 6.0%, with like-for-like sales down 12%, reflecting a tough prior year comparator and the return of Toolstation's customer mix back to its ‘core trade base’.

Travis Perkins said its stock levels remain healthy as supply chains normalised by the end of 2021, though said the war in Ukraine ‘may challenge that relative stability’.

It expects cost inflation to remain ‘manageable’, but sounded caution.

‘The group's forecast for materials price inflation, which was originally expected to ease into the second half of the year, is now more uncertain with pricing likely to form a higher proportion of sales growth across the year than previously thought,’ the company said.

Overall, Travis Perkins said its full-year expectations remain unchanged with order books robust across the UK construction sector.

‘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,’ said Chief Executive Nick Roberts.

Shares in Travis Perkins were down 1.5% at 1,248.00 pence in London on Friday morning.

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