Why Travis Perkins' performance is not as bad as it looks

Three of the group's four operating divisions reported higher revenues. The consumer business, which comprises Wickes and Toolstation, pushed adjusted operating profits ahead by nearly a quarter to £95m, while like-for-like sales were up 5.3 per cent against a DIY market that was broadly flat. Profits in the contracts division, which concentrates on commercial construction and housebuilding, grew by 15 per cent to £83m, although trading was more difficult than in the previous year, partly due to pressure on public sector repair and maintenance work.

General merchanting pushed profits ahead by nearly 9 per cent to £199m, although trading slowed in the second half as a result of fewer secondary housing transactions. However, better sourcing and management of cost price inflation helped to lift gross margins.

The non-performer was plumbing and heating, where like-for-like sales fell by 1.4 per cent. This was partly due to lower boiler sales after the positive impact of the government-backed ECO scheme in 2014 was not repeated, and adjusted operating profits fell by 29 per cent to £46m.

Analysts at Peel Hunt are forecasting adjusted pre-tax profits for the year to December 2016 of £431m and EPS of 140p, against £364m and 117p in 2015.