Travis Perkins lifts guidance, to pay special divi as profits return

Builders merchant Travis Perkins lifted full-year guidance and said it would pay a special dividend as it returned to profit after a recovery in its repairs, maintenance and improvement (RMI) markets .

Pre-tax profit for the six months to June 30 came in at £145.7m from a loss of £94.5m last year. Revenue jumped to £2.3bn from £1.66bn. A 12p-a-share dividend was declared along with plans for a 35p special payout.

Travis Perkins spun off its Wickes home improvement business in April and sold its plumbing and heating division in May. It said it now expects full-year adjusted operating profit of at least £310m, up from the £300m forecast in June.

The company said that while there was some uncertainty remained due to the ongoing Covid-19 pandemic, coupled with inflationary pressures and product supply issues, it expects the RMI market to remain strong “for some time to come and for new housing to continue on its recovery path”.

It added that it planned to return the £325m from the plumbing and heating sale to shareholders via a 35p special dividend as soon as practicable and start a share buyback.

“Our businesses have continued to play a critical role in the construction sector's ongoing recovery and, while some uncertainty still remains, the end markets for our trade-focused businesses remain robust,” said chief executive Nick Roberts.