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 拢129.2m for the six months to June 2011 and turnover rose 54.2% to 拢2.34bn.
Travis Perkins added it is on course to make 拢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: 鈥淭he 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.
鈥淗owever, 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.
鈥淐ommercial and industrial markets, which represent 8% of our revenue, have been flat, but with significant variations in sub-sectors 鈥� industrial, and general commercial work has been growing, whilst office developments and refurbishments continue to be subdued.鈥�
Chief executive Geoff Cooper added he expected more M&A activity in the construction products sector.
Travis chief executive Geoff Cooper said: 鈥淭he difficult market backdrop will continue to put pressure on weaker competitors and will lead to further consolidation in our markets, particularly in merchanting.鈥�
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