Preliminary results point to £3.2bn sales, up 5% on previous year

Builders’ merchant group Travis Perkins indicated a strong performance in 2010, as sales rose 5% to £3.2bn.

In its preliminary results, the group said profits were also up 20% to £217m.

The builders’ merchant group added sales of building materials had started 2011 strongly, with sales up on last year 22% in January and 10% in the first three weeks of February.

Real-time Share Price
Real-time Share Price
Geoff Cooper, chief executive, said he remained cautious about prospects for the year even after a strong start.

“We expect conditions for the next 12 months to remain difficult. “There is considerable gloom in the wider economy, but we do not subscribe to the double-dip theory.

He added: “The merchanting market fell by over 30% from its peak in 2008 and although activity has picked up a little, from a longer term perspective, activity levels are currently around 20% below their peak.

“Although we will probably see some turbulence in short term trends, we expect activity levels to continue their gradual recovery.  In contrast, we expect the retail market to continue to be soft.”

The group claimed it outperformed the market across all 11 divisons by about 4%.