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Travis Perkins to outperform market as year earnings jump 15 percent

Published 03/03/2015, 08:12
© Reuters. A worker walks past bricks at the Vauxhall depot of building material supplier Travis Perkins in London
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LONDON (Reuters) - Travis Perkins (L:TPK), Britain's biggest supplier of building materials, posted a 14.9 percent rise in 2014 earnings, hiked its dividend 22.6 percent and said it was confident it can continue to outperform the markets it operates in.

The firm, which trades from 18 brands including Travis Perkins, Wickes, City Plumbing, Keyline, Tile Giant and BSS, across 1,900 UK outlets, said on Tuesday adjusted earnings per share were 119 pence in 2014.

That compares with analysts' average forecast of 116.3 pence, according to Reuters data, and 103.6 pence made in 2013.

Adjusted profit before tax rose 12.8 percent to 362.3 million pounds ($558 million) as revenue increased 8.4 percent to 5.6 billion pounds.

Travis Perkins, which entered the FTSE 100 index of Britain's largest companies in June last year, is paying a total dividend of 38 pence, up from 31 pence in 2013.

The firm noted that whilst it was still relatively early in the recovery of the UK construction industry, the new housing market, new commercial and industrial markets and the repair, maintenance and improvement market (RMI) have been performing largely as it expected.

"The group remains confident it can continue to outperform the markets it operates in over the year ahead and the medium-term," it said.

It is targeting medium-term double digit operating profit growth and continuing growth in return on capital, achieved through the modernisation and expansion of its store estate as well as efficiency gains.

Shares in Travis Perkins, which have risen 16 percent over the last six months, closed at 2,023 pence on Monday, valuing the business at about 5 billion pounds.

© Reuters. A worker walks past bricks at the Vauxhall depot of building material supplier Travis Perkins in London

($1 = 0.6496 pounds)

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