Travis Perkins reports continued out-performance against an uncertain UK outlook, and has cited the latter in plans to close more than 30 branches and for further efficiency-driven changes in its supply chain.
This would result in an exceptional charge of £40m to £50m this year, said CEO John Carter in a Q3 trading statement.
"We have a proven track record developed over many years of taking swift action to take advantage of opportunities as they arise in whichever part of the cycle we find ourselves," he said.
"The strength of the Group's balance sheet and the competitive advantage we have created through the investments we have made position us well to continue outperforming the markets we compete in and drive shareholder value over the medium term.
"General Merchanting delivered a solid result in the third quarter alongside very strong performances in our Consumer and Contracts businesses where we materially outperformed our markets.
"Our Plumbing & Heating results were disappointing and whilst market conditions have worsened, we are not satisfied with our performance and will commence reviewing these operations.
"Our operational focus remains on improving all of our customer propositions, optimising our networks, intensifying our use of space and exploiting the scale advantage we have created.
"We expect this focus to underpin our outturn for 2016, albeit with Adjusted EBITA slightly below current market consensus of around £415 million."
- Total sales growth of 3.4%, like-for-like growth of 2.0%
- Market outperformance by Consumer, Contracts and General Merchanting businesses
- Plumbing & Heating performance not satisfactory albeit in a challenging market
- Continued disciplined investment in market leading and structurally advantaged businesses