(Reuters) - British building materials wholesaler and retailer Travis Perkins (L:TPK) beat consensus expectations for 2019 revenue on Tuesday as it benefitted from growth at its Wickes chain, sending shares almost 3% higher at opening.
The company, which recently sold its plumbing and heating business, said its planned demerger of Wickes was "proceeding smoothly" and that it would propose to demerge the chain into a standalone listed business in the second quarter of this year.
Rising expenses and tough market conditions in the home improvement business due to uncertainty around Brexit has led the company to slim down its structure by selling off some of its units and cutting costs.
After the demerger, Travis Perkins will be left with a business that caters purely to building trade professionals, ranging from sole traders to national housebuilders.
The company reported annual turnover of 6.96 billion pounds, just above analysts' average expectation of 6.94 billion pounds, according to I/B/E/S data from Refinitiv.
"Against a challenging market backdrop we have delivered a strong operational and financial performance across the
Group," Chief Executive Officer Nick Roberts said.
"The actions put in place to improve our Wickes and Plumbing & Heating businesses meant that both recovered well during the year."
Travis Perkins, which has 2,000 branches, stores and sites around the UK, said adjusted operating profit rose to 442 million pounds for the full-year ended Dec. 31., from 410 million pounds a year earlier.