Travis Perkins H1 sales fall 20% due to Covid lockdown

Builders’ merchant Travis Perkins reported a 20% fall in first-half revenues on Tuesday as its performance was dented by the coronavirus lockdown, but trends are improving.

In the six months to the end of June, group revenue declined to £2.78bn from £3.48bn in the first half of 2019 "due to the significant impact of the Covid-19 pandemic", with total sales in the second quarter slumping 35.7%.

Still, the company said that since the last update in mid-June, the merchanting business has recovered well, while the recovery in the plumbing and heating segment has been more gradual. It has also seen strong sales growth in Toolstation & Wickes.

Travis Perkins said that despite the closure of 165 branches in June - around 8% of its overall estate - the trend in total sales volumes has continued to improve so far in July, with the total sales run rate now close to last year.

The company had £455m of cash on deposit at the end of June, giving it an overall liquidity headroom position of £855m.

Chief executive officer Nick Roberts said: "Since the trading update on 15 June, the business has continued to recover well with good demand from RMI and infrastructure markets offsetting ongoing challenges in the new build and commercial construction sectors.

"We remain cautious as to the near-term headwinds facing our business and the wider economy, nevertheless the decisive actions we have taken to manage our cost base mean that we are well placed to continue to service our customers, support our colleagues and generate value for our shareholders."