A healthy set of results for 2004 is spoilt by news of a poor start to 2005 by recent acquisition Wickes.
Travis Perkins has announced pre-tax profits of £190.4 million for year ended 31 December 2004, up 17% from 2003. The results represented a final hurrah for Frank McKay, who stepped down as chief executive at the end of last month. Turnover for the group was also up - 9% for the period to £1.8 million.
McKay’s successor, Geoff Cooper, said: “These results demonstrate how the group’s strategy of continuous improvement and branch network expansion is driving further growth in turnover, operating margins and returns to shareholders.”
The group has been criticised for paying McKay a £100,000 bonus as he hands over the reigns to Cooper, and the gloss was immediately rubbed from the figures as more up-to-date information from 2005 emerged. While 2004 results did not include Wickes, which Travis Perkins acquired in December, trading at the DIY group dipped in January and February, over-shadowing the 2004 results.
Cooper told reporters that a slowdown in consumer spending and the recent spate of bad weather had affected sales. He said he was confident that sales would soon increase, and that savings from the acquisition would bring profits back on track for the year ending December 2005.