Construction Enquirer News Trading update reveals lockdown impact as RMI and infrastructure leads recovery
Travis Perkins said it is continuing to “recover well” after a city update revealed the full impact of Covid-19 on sales.
During the first half of the year total group sales fell 20% on 2019 to £2,780m.
Further breakdowns show revenue at the general merchanting business dropped 42.8% in the second quarter with monthly sales falls of 73.1%, 37.4% and 17.6% in April, May and June respectively.
Travis Perkins said the recovery in sales is being led by RMI markets and infrastructure spending which are “proving to be more robust than the new housebuilding and commercial construction markets.”
Nick Roberts, CEO, 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.”
In June the company confirmed plans to close around 165 branches with the loss of 2,500 jobs.
The update added: “Despite the closure of 165 branches in June, representing around 8% of the Group’s overall estate, the Group has continued to experience an improving trend on total sales volumes so far in July, with the Group’s total sales run rate now close to prior year.”