THE MONTH National merchants see positive start
THE FIRST quarter of 2019 started positively for national merchat groups Grafton and Travis Perkins, according to statements released prior to the companies’ AGMs last month. Travis Perkins saw group like-
for-like sales growth of 7.3% and total sales growth of 5.4% in the first quarter of 2019, compared with the same period a year previ- ously. There was strong merchant- ing like-for-like sales growth of 10.6%, a continued acceleration of Toolstation growth, and a good recovery in performance at DIY chain Wickes with 10.5% like-for- like sales growth.
The Plumbing and Heating division, which is currently up for sale, saw an expected slowdown in like-for-like (-4%) and total sales (8.2%) as the weather conditions were milder in Q1 2019 compared to 2018. Both the branch network and specialist on- line channels showed good sales growth, which was offset by a
decline in the wholesale business. Travis Perkins Chief Execu- tive John Carter said: “We have delivered strong sales growth in the first quarter of the year, which reflects both our focus on excellent customer service and the weak comparator in 2018. This performance is all the more encouraging given the impact of the on-going political uncertainty on our end markets.
“The actions set out at our capital markets day in Decem- ber 2018 to deliver best in class service to trade customers and to simplify the Group are well underway. We are making good progress on cost reduction activi- ties and expect to meet our cost reduction targets this year. Overall expectations for the Group in 2019 remain unchanged.” Grafton Group plc, meanwhile,
saw group revenue rise 6.1% to £962m (four months to 30 April 2018 £907m) and by 6.5 % in constant currency.
Group like-for-like revenue
increased by 6.4%. Growth in total revenue was impacted by the disposal of two non-core UK merchanting busi- nesses in the second half of 2018. UK Merchanting division – which includes Grafton Merchanting GB and Selco – saw revenues rise 4.8%. Irish merchanting was up by 10.7%.
Gavin Slark, Chief Executive
Officer of Grafton Group plc said: “The Group had a positive start to the year and we should continue to benefit from the momentum in our Irish and Dutch businesses.
MP gets the Plumbase low carbon message
Plumbers merchant Plumbase showed the MP for Nottingham South, Lilian Greenwood, how the building materials industry can play a key role in delivering a low carbon future, in a visit coordi- nated by the Builders Merchants Federation.
Plumbase managing director Mark Bradley, who chairs the BMF Plumbing and Heating Forum, hosted the visit to Plumbase in Lenton Lane. He and Greenwood discussed how modern advances in home heating products can deliver significant improvement to air quality and energy use. He said: “BMF members pro- vide the materials, products and expertise needed to de-carbonise our homes, and this visit provided a great opportunity to discuss the workings of the industry’s supply chain and how it can help support
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future low carbon objectives. “Fitting energy-efficient, low emission and water-saving meas- ures in properties across Notting- ham and the rest of the UK will be key to achieving sustainability goals.
“The issue is set to gain fur- ther momentum following the Chancellor of the Exchequer’s announcement in March that a new Future Homes Standard will be introduced to end fossil-fuel heating in new homes by 2025. “Efficient boilers, coupled with better insulation and the small-scale generation of heat and electric power by individual householders, will be the key driv- ers in converting homes for a low carbon world.” Joining Greenwood on the visit were Steve Daley, the branch manager at Plumbase in Lenton
Lane, and Brett Amphlett, BMF’s Policy and Public Affairs Manager. Greenwood said: “I was pleased to visit Plumbase and see their contribution to Nottingham’s prosperity and the wider East Midlands’ economy. It is only by working together that politicians and businesses like Plumbase can move to a low-carbon future to improve the energy performance of Nottingham’s homes. I am en- couraged to see local businesses are up for the challenge.”
Underlying demand in the UK RMI market remains relatively subdued and we continue to focus on real- ising the benefits from the invest- ments we have made in recent years into our higher margin Selco and Leyland SDM businesses.”
Harlow Bros joins NMBS
Midlands-based independent timber merchant Harlow Bros has joined the National Merchant Buying Society.
Harlow Bros is a family-owned business, set up over 90 years ago.
The merchant has seven
branches in Nottingham, Hinckley, Derby, Leicester, Coalville, Long Whatton, and Burton On Trent. It offers a complete timber service, catering for the needs of trade and retail customers from large national housebuilders, through to sole traders and the DIY market.
Services include in-house milling and machining facilities, alongside its own Poultry House manufacturing business and a dedicated fleet of delivery vehicles ranging from crane off-load to specialist roof-truss trailers.
www.buildersmerchantsjournal.net June 2019
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