The plumbing and heating market has been flat in the last few years, hit by lower repair, maintenance and improvement (RMI) volumes and stronger competition including online operators.
At least the consumer and general merchanting divisions delivered higher profit, helping drive overall cash conversion up from 77 per cent to 107 per cent. That helped fund capital expenditure of £187m. This included a further 43 Toolstation stores and 18 Benchmarx kitchens outlets. A further 600 product lines were added as well as a two-hour click-and-collect service for Travis Perkins' merchanting outlets. Some 46 Wickes stores were refitted, and now provide a one-hour click-and-collect service as well as one-hour time slots for home deliveries.
Analysts at Peel Hunt forecast adjusted pre-tax profit of £403m for the year to December 2017 and EPS of 132.6p (from £381m and 120p in 2016).
|TRAVIS PERKINS (TPK)|
|ORD PRICE:||1,470p||MARKET VALUE:||£3.69bn|
|TOUCH:||1,468-1,470p||12-MONTH HIGH:||1,978p||LOW: 1,090p|
|DIVIDEND YIELD:||3.1%||PE RATIO:||288|
|NET ASSET VALUE:||1,056p*||NET DEBT:||14%|
|Year to 31 Dec||Turnover (£bn)||Pre-tax profit (£m)||Earnings per share (p)||Dividend per share (p)|
Ex-div: 13 Apr
Payment: 26 May
*Includes intangible assets of £1.89bn, or 753p a share
The capex should help the retail operations challenge the digital nous of
Last IC view: Hold, 1,541p, 3 Aug 2016