Travis Perkins halts sale of plumbing and heating unit
Travis Perkins is on track to demerge DIY retailer Wickes by the second quarter of 2020, but has put the sale of its plumbing and heating unit on hold.
The news came as the builders merchant reported growth in Q3, with total sales up by 3.8%, while the group’s merchanting businesses delivered like-for-like growth of 1.5%. The retail segment achieved like-for-like sales growth of 9.7%.
While the Wickes demerger remains under way, both in terms of the separation of the business and the regulatory process, the firm has decided to pause the sale process of its plumbing and heating business given “the current unprecedented level of uncertainty”.
Travis Perkins is on track to demerge DIY retailer Wickes by the second quarter of 2020, but has put the sale of its plumbing and heating unit on hold.
The news came as the builders merchant reported growth in Q3, with total sales up by 3.8%, while the group’s merchanting businesses delivered like-for-like growth of 1.5%. The retail segment achieved like-for-like sales growth of 9.7%.
While the Wickes demerger remains under way, both in terms of the separation of the business and the regulatory process, the firm has decided to pause the sale process of its plumbing and heating business given “the current unprecedented level of uncertainty”.
However, it remains on target to achieve planned cost reductions in 2019 of £20m-£30m.
Nick Roberts, chief executive at Travis Perkins, said: “Now in my third month since taking over as CEO of the group, I have spent a considerable amount of time in our branches, learning about our businesses and our markets from colleagues, customers and suppliers. This has confirmed my initial impressions that our businesses are well positioned to compete strongly and win greater share in their markets in the future.
“The group delivered a solid performance in Q3, despite trading conditions becoming incrementally more challenging through the course of the summer as a result of the on-going market uncertainty. Though the group maintains a cautious outlook for the near-term, full-year performance remains in line with our expectations.”
To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette
