Turnover at builders' merchant goes up 11.3% but lead indicators point to a slowdown

Builders’ merchant Travis Perkins has reported an 11.3% increase in turnover for the first nine months of 2007 but said lead indicators pointed to a slowing of market growth.

The group said trading continued to be in line with expectations, with both the merchanting and retail businesses performing well.

Total turnover in the merchanting division was up 12.5%, with like for like turnover per trading day up by 9.2%.

The company said: “These increases represent gains in like-for-like, organic and total market share as our businesses are increasingly recognised by customers as a better place to get building materials.”

Wickes, the group’s home improvement business, saw total turnover for the 39-week trading period to 29 September rise 8.5 %.

Forty merchanting branches and three Wickes stores were added to the business during the nine-month period, expanding Travis Perkins’ selling space 5.6%.

The group said it expected further growth next year in spite of gloomy economic forecasts.

It said: “With our traditional strengths of cost vigilance and tight cash management, we are confident of making further progress in 2008 and beyond.”