DJ Travis Perkins: Update on trading and Government assistance
Travis Perkins (TPK)
Travis Perkins: Update on trading and Government assistance
16-Dec-2020 / 07:00 GMT/BST
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16 December 2020
Travis Perkins plc - Update on Trading and Government assistance
Trading performance
Sales performance in October and November 2020
Merchanting Toolstation P&H Retail Group
LFL 3.8% 32.4% 1.9% 19.3% 8.6%
Net (7.4)% 8.6% (3.8)% (0.7)% (4.7)%
openings/closures
Disposals* - - (18.8)% (4.9)% (5.4)%
Trading days (2.4)% - (2.2)% - (1.8)%
Total Sales (6.1)% 41.0% (22.9)% 13.7% (3.3)%
*Disposals include PF&P wholesale from the P&H segment in January, and Tile
Giant from the Retail segment in September
The end market trends experienced during Q3 continued into October and
November while the Group also continued to make good progress on retaining
sales from branches closed as part of the restructuring activity during the
summer. As a result of these factors, the Group delivered robust,
like-for-like sales growth of 8.6% during the period.
There continues to be strong demand across the DIY market, resulting in
particularly strong sales in Wickes and Toolstation, as well as the
continued encouraging recovery in domestic RMI across smaller trade
customers in Travis Perkins and City Plumbing. Volumes with larger customers
continue to recover more slowly, impacting the rate of sales recovery in our
specialist merchants in BSS, CCF, Keyline and the large contract side of the
P&H business. Some larger customers were more impacted by the second
national lockdown in November, alongside a negative impact on the kitchen
and bathroom businesses as showrooms were forced to close.
Government assistance
Given the status of Wickes as an essential retailer, and Toolstation also
benefiting from the surge in DIY trade during 2020, both businesses will
return the business rates relief received as a result of the COVID19 crisis
and repay monies received under the Government's Coronavirus Job Retention
Scheme. This totals around GBP50m, which will correspondingly reduce the
expected outturn for Group adjusted EBITA for 2020.
Cash and liquidity headroom
During November the Group raised GBP250m via a long five-year public bond
issuance at a coupon of 3.75%. The proceeds will be used to repay the GBP250m
September 2021 bond maturity before the end of December.
Adjusting for bond movements, at the end of November liquidity headroom,
including the undrawn GBP400m RCF, was GBP988m. The strength of the Group's
ongoing liquidity position has enabled the settlement during December of
approximately GBP100m of VAT deferred from H1 2020. Taking this into account,
management continues to expect covenant net debt at the year end to be
similar to the 30 June 2020 position.
Enquiries:
Travis Perkins Powerscourt
Matt Worster Justin Griffiths / James White
+44 (0) 7990 088548 +44 (0) 207 2501446
matt.worster@ccfltd.co.uk travisperkins@powerscourt-group.com
Heinrich Richter
+44 (0) 7392 125417
heinrich.richter2@travisperkins.co.uk
ISIN: GB0007739609
Category Code: TST
TIDM: TPK
LEI Code: 2138001I27OUBAF22K83
Sequence No.: 89773
EQS News ID: 1155485
End of Announcement EQS News Service
(END) Dow Jones Newswires
December 16, 2020 02:00 ET (07:00 GMT)
