BUILDERS MERCHANTS: A-Z TRAVIS PERKINS T Travis Perkins


Due to the way the figures for Trailblazers are compiled and the delay in getting full year-end results to Companies House, the 2018 results for builders merchant group have not ben included in the League Tables. However, the headline year-end figures show that the group saw its 2018 sales rise to £6,741m, an increase of 4.8% against a market backdrop of considerable uncertainty. The Plumbing & Heating division, which was put up for sale at the end of 2018, saw significant sales growth, achieving £1,528m and winning market share throughout its branch network. The sale of the P&H division is expected to be completed by the end of Q2 2019 - after this edition of Trailblazers had printed. The soon-to-be-divested Plumbing and Heating division encompasses PTS, City Plumbing Supplies, Primaflow F & P and specialist online businesses the Underfloor Heating Store, Direct Heating Spares and National Shower Spares. Travis Perkins’ General Merchanting division increased sales to December 31 2018 by 1.4% to £2,137m. Four new Travis Perkins branches were opened, plus one added through acquisition, and an additional three Managed Services sites. There were 19 branch closures, including eight Managed Services sites at the end of fixed term contracts. Three branches were refitted to the modern format, with a further four relocated to


TRAVIS PERKINS THE NUMBERS


2015 Turnover £m Gross profit £m


Operating profit £k Net profit £k Staff


THE RATIOS 2015 Stockturn Gross margin %


Operating margin % Net margin % Sales/head £k Profit/head £


Return on capital % BMJ INDEX


5.5


29.8 4.3 3.8


241


10,296 8.0


2016 5.7


29.8 1.6 1.2


228


3,686 2.7


2017 5.5


29.6 5.1 4.5


232


11,779 10.1 98


5,941.6 1,769.0 254,000 223,500 24,670


2016


6,217.2 1,851.8 100,400 72,700 27,239


2017


6,433.1 1,905.6 326,900 289,700 27,753


TRAVIS PERKINS


Lodge Way House Lodge Way


Harlestone Road Northampton NN5 7UG


01604 752424 www.travisperkinsplc.com


CEO: John Carter Chairman Stuart Chambers


Chief Financial Officer Alan Williams


Chief Operating Officer Frank Elkins


CEO, Plumbing and Heating Andrew Harrison Group Human Resources Director Carol Kavanagh Managing Director, Wickes Simon King


more optimal trading sites within their catchments.


Strong revenue growth continued in the Contracts division, growing 7.5% in total, and by 7.0% on a like-for-like basis. Sales growth was strong in all three businesses, with price growth of 4.5% to mitigate input cost inflation and 2.5% volume growth reflecting continued market share gains. After a difficult start to the year in Q1, with markets suffering uncertainty following the collapse of Carillion, the division maintained a strong like-for-like growth rate throughout the remainder of the year. Keyline continued to relocate and consolidate branches into lower cost sites, and providing fit-for-purpose branches for customers and colleagues. In 2018, eight branches were closed (including one transferred to the


% CHANGE 2016 5 5


(60) (67) 10


% CHANGE 2016 4 0


(62) (69) (5)


(64) (66)


Travis Perkins brand), with two new, low cost branches opened. Wickes, which operates in an ‘extremely challenging retail environment’, saw revenues decline by 2.5% in 2018, and by 4.4% on a like-for-like basis. The Group also announced a restructuring which will aim to reduce overhead costs and speed up decision making. A key component of this is the removal of the existing divisional structure above the Merchanting businesses and streamlining central functions to support businesses directly. The revised structure will alter how the businesses are managed and reported. From 2019, the Group will report under the following segments: Merchanting, Toolstation, Retail and Plumbing & Heating (which is to be divested this year).


2017 3 3


226 298 2


2017 (2) (1)


215 285 2


220 270


Merchanting includes the brands Travis Perkins, Keyline, CCF, BSS and Benchmarx. Retail business are Wickes and Tile Giant. Toolstation will become a stand-alone division. Chief executive officer John Carter said: “The Group delivered a solid performance overall in 2018 despite a challenging market backdrop.


“We took concerted self-help actions during the year, and the benefits of this cost reduction, together with improved trading, drove an improved profit performance in the second half of the year.


“In December 2018, we set out our intention to focus on delivering best-in-class service to trade customers and to simplify


38


Subsidiary businesses: Travis Perkins, Benchmarx, Tile Giant, PTS, CCF, City Plumbing Supplies, Primaflow F & P , BSS, Toolstation, Keyline, Rudridge, National Shower Spares, TP Toolhire, Wickes


Manging director Travis Perkins: Kieren Griffin Manging diretor Primaflow F & P Jed Kenrick


Managing director City Plumbing Supplies John Frost Managing director CCF Dean Pinner


Managing director Toolstation James MacKenzie Managing director Keyline: Paul Beaman


Managing director BSS: Angela Rushforth Sales director Rudridge: Paul Duke


Branch numbers: 2050 Employee numbers: 30,000 (group)


the Group. To that end, removing the divisional structure within Merchanting will enable an increased focus on customers at a business unit level, speed up decision making and, at the same time, reduce costs.


“In the longer term, the Group remains focused on generating sustainable profitable growth for shareholders and we will achieve this by allocating capital and resources to our most advantaged businesses.


“Whilst we remain positive about the long-term outlook for our end markets, we are planning for uncertain market conditions to continue in the near term. The Group remains focused on self-help actions to underpin performance in the near term, whilst continuing to invest for the future.”


A supplement to builders merchants journal April 2019


TRAILBLAZERS


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