Travis Perkins plc has reported interim results for the six months ended 30 June 2019, advising of ‘good strategic progress underpinned by strong trading performance’.
Click here for more details on the Group’s performance.
Toolstation demonstrated outstanding revenue growth of 23.1%, and 17.3% on a like-for-like basis. This growth was primarily driven by the continued extension of the branch network, the continued attraction of the low value, high convenience proposition and the further extension of ranges available online.
Adjusted operating profit grew by £3m, with higher earnings from growing sales volumes partially offset by continued investment in the business to drive future growth.
Return on capital was flat year-on-year as the growth in adjusted operating profit was offset by the continuing growth in the branch network. A further 21 Toolstation branches were opened in the half, with new branches performing ahead of expectations, including further trials of new formats including smaller footprint branches. There are over 60 branch openings planned in total for 2019, with all of the remaining sites for the year already identified.
The range of products available online and through the catalogue was extended by an additional 1,500 products, with added ranges being primarily trade focused brands. Toolstation’s net promoter score increased by five points to 86, reflecting the strong proposition and the high quality of service in branch. The new website, launched in December 2018, is driving strong growth in click & collect transactions, and continues to demonstrate very high conversion rates of site visitors.
The development of the Toolstation business in Europe continued, with a further 13 branches opened, bringing the total to 53. Branches opened in the Netherlands continue to perform strongly, with further network expansion planned in the second half of the year. The branch trial in France continues to perform well, and a first trial branch was opened in Belgium.
View the full Travis Perkins half-year performance summary here.
Source : Insight DIY Team and Travis Perkins PLC