Travis Perkins (LON: TPK) revealed its third quarter trading update on Thursday.
The group’s sales have increased by 3.9% thanks to drives from home improvement projects over the past year.
Group total sales fell 3.4% due to store closures in June.
Looking forward to it, Travis Perkins said in the third quarter the group’s final market showed a recovery in encouragement from the lockdown period. However, the uncertainty during the pandemic and ongoing Brexit negotiations means it is difficult to predict performance in the short term.
“Based on the assumption that the current volume trends, including the continued strength of DIY sales, further lockdown measures introduced will not have a significant impact on the group’s final market, and the group expects EBITA performance in 2020 to be at the top half of current analyst expectations,” the group said.
Chief Executive Nick Roberts commented: “As the market continues to recover due to the impact of the national lockdown earlier this year, we reported overall overall sales performance for the quarter, driven by a strong recovery in demand across the domestic RMI market, benefiting Travis Perkins, City Plumbing, Wickes and Toolstation businesses serving these markets.
“Currently, this domestic RMI trend is still strong. While local trade activities have recovered well, our trade operations continue to experience delays in recovery from larger housing construction and construction projects. However, there are indications that workflows will increase across these sectors as fundamental demand is strengthened as businesses adapt to new safe working methods that allow sites to remain open during the period of regional lockdowns.
“During the quarter, we have made further progress in strengthening the core of our trading business, in addition to completing the disposal of the tile giant.”
Travis Perkins’ shares (LON: TPK) are trading +2.42% at 1.249,00 (0903GMT).
