Travis Perkins Plc (LON:TPK) is keeping an eye on potential impacts of coronavirus, whilst retaining a cautious view of consumer confidence following the recent UK election and Brexit.
Financial results for 2019, released today, noted the “increasingly challenging” end-market environment through the second half.
Although the election of the government has “a more certain political environment”, and certain indicators have improved, the trade merchant and home improvements retailer said that there is a natural lag between increasing housing transactions and consumer confidence.
Full year financials reveal revenue of £6.95bn, up 3.2% on the preceding year, while like-for-like revenues growth was marked at 3.8% versus 4.9% in 2018.
Operating profit came in at £232mln and the firm reported a £123mln total profit, swinging from a loss of £84mln in the year before.
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Travis Perkins confirmed a 48.5p dividend per share, up from 47p.
Stockbroker Liberum, in a note, said: “Travis Perkins results came in ahead of our expectations, with all four divisions showing progress.
“The main highlight was that the merchanting businesses grew its market share, showing clear outperformance against Grafton in 2019.”
The company noted that its plans to demerge the Wickes business has progressed well and it is now on-track to complete in the second quarter of 2020.
“Whilst trading conditions in 2019 have been challenging we have seen some green shoots of recovery in our lead indicators, although it remains too early to point towards any tangible improvement in RMI,” said Nick Roberts, Travis Perkins chief executive.
“The group remains focused on delivering against our key priorities, and we are optimistic that we can build on the positive performance in 2019, continue to outperform our end-markets and deliver improved returns for our shareholders."
Roberts added: "Our strategic progress in 2019 has been significant, but there remains much work to do in order to build stronger foundations for the group to deliver enhanced returns and long-term growth.
“Our immediate priorities are the regeneration of the Travis Perkins general merchant, continued growth of Toolstation, further simplification of our business and successful delivery of the demerger of Wickes.
"The long-term fundamental drivers of the group's end-markets remain strong, and our businesses enjoy leading positions in their respective markets.”