Strong interim results off the back of BSS acquistion
Builders merchant Travis Perkins has reported strong interim results, with profit and turnover both up.
The firm saw pre-tax profit rise 20.5% to £129.2m for the six months to June 2011 and turnover rose 54.2% to £2.34bn.
Travis Perkins added it is on course to make £25m a year savings on running costs following the acquisition of plumbing and heating specialist BSS at the end of last year.
The statement said: “The markets of most importance to our businesses, trade repair, maintenance and improvement and private housing new build, showed good resilience to the worsening economic conditions.
“However, as the period progressed it became apparent that, as predicted, public sector work, which represents around 20% of our revenue, was starting to slow down.
“Commercial and industrial markets, which represent 8% of our revenue, have been flat, but with significant variations in sub-sectors – industrial, and general commercial work has been growing, whilst office developments and refurbishments continue to be subdued.”
Chief executive Geoff Cooper added he expected more M&A activity in the construction products sector.
Travis chief executive Geoff Cooper said: “The difficult market backdrop will continue to put pressure on weaker competitors and will lead to further consolidation in our markets, particularly in merchanting.”