NEWSROUND
Travis Perkins posts encouraging first quarter results
Builders merchant group Travis Perkins has seen a positive start to the year with total sales for the three months to 31 March 2022 13.6% ahead of the year before year, according to a trading update issued on April 29.
Total merchanting sales were up by 17.9% , although price inflation accounted for approximately two- thirds of the growth with manufacturers’ price increases continuing to be passed through the business and onto customers. Demand from customers was “robust” , thanks to a backlog of social and economic infrastructure work and ongoing requirement for new housing. There were also healthy order books from smaller SME customers. Sales at Toolstation were down 6.0% in the first quarter, with like-for- like sales down 11.9%, reflecting a tough prior year comparator and the return of Toolstation’s customer mix back to its core trade base.
Nick Roberts, Chief
Executive, said: “The Group has had an encouraging first quarter and, although the wider economic backdrop remains uncertain, we are well placed to build on this positive start in the coming months.
“The energy efficiency of the UK’s built environment remains a key focal point for households and politicians alike and the current cost of energy is likely to prompt further demand for improvement in both new and existing buildings.”
6 Grafton posts positive performance in line with plans
Grafton Group plc saw total revenue up by 17.5% in constant currency and average daily like- for-like revenue growth of 7.2% for the period from 1 January 2022 to 17 April 2022. Group total revenue increased by 15.0 per cent to £645.3 million in the period to 17 April 2022 from £561.1 million in the same period in 2021, excluding the traditional merchanting business in Great Britain that was divested on 31 December 2021. The distribution and
manufacturing businesses continued to benefit from broadly favourable markets. Revenue in the retailing business in Ireland normalised as expected, relative to the comparative period that saw exceptional gains while trading as an essential retailer during the Covid lockdown. Building materials price inflation continued to be a key driver of revenue growth across the Group. Growth in average daily
like-for-like revenue at the UK distribution businesses was
driven by building materials price inflation across core ranges. Selco continued to make good progress with its differentiated customer offer and it continued to invest in the brand with the recent opening of a branch in Exeter. Footfall in the Leyland SDM specialist decorators’ business in central London began to recover as workers and visitors started to return to the city. The MacBlair distribution business in Northern Ireland continued to perform at record levels of activity.
www.buildersmerchantsjournal.net May 2022
IBMG continues expansion across the south
Builders merchant group Independent Builders Merchant Group has continued its policy of expansion by adding a builders merchant and extending its electrical branches.
The independent builders merchant has bought Merkko Builders Merchants Ltd, based in Abingdon, Oxfordshire, and has two branches in Kingston Bagpuize and Aldermaston. Strategically it will extend the IBMG’s builder’s merchant offering, providing a strong
platform for further growth. This partnership resolves future succession issues for Merkko, which will join Grant & Stone and Ian Duckitt, Merkko’s owner, will continue with the business working with Mat Miller, managing director of Grant & Stone Builders Merchants, to ensure Merkko’s successful integration into the Group. The group’s electrical division has opened two new Grant & Stone electrical wholesalers, in Brentwood, Essex and Swindon,
Inflation boosts SIG sales and profits
The company reported on Friday April 29 that group sales for the quarter to March 31 were up 25% at £641m. Group sales for the UK businesses were 23% up on 2021 for the quarter at £641m for the first quarter, with inflation estimated to have added about 19% to group growth over the period.
SIG plc is expecting its full-year results to be “significantly ahead” of expectations, on the back of rising demand and cost inflation.
Steve Francis, Chief Executive, said: “The first four months have seen markedly stronger growth than anticipated, driving positive margin momentum across all
our countries of operation. Our decentralised model, with 433 branches in seven countries providing strong local specialist expertise and superior stock availability, continues to gain ground and to show resilience in market conditions that remain challenging.
“Demand for our sustainable construction offerings remain strong. The three acquisitions made during the last 18 months are performing well and this is an area of increasing strategic focus for us.”
taking IBMG’s specialist electrical wholesale branches to 25 across the South of England.
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