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Travis Perkins grows Q1 sales despite plumbing and heating weakness

LONDON (ShareCast) - UK timber and builders merchant Travis Perkins (LSE: TPK.L - news) said trading was in line with expectations in the first quarter with three out of four of its businesses performing well against strong comparators. Group sales were up 7.2% year-on-year in the first three months of 2015, registering like-for-like (LFL) growth of 5.1%.

Travis Perkins noted that comparisons with last year were tough, with the first quarter of 2014 seeing sales growth of 15.6% and LFL growth of 12.7%.

As such, the company noted that two-year LFL sales growth rate was 18.4% in the quarter just gone, which "demonstrates a continuation of the strong and consistent growth experienced throughout 2014".

Sales in general merchanting, consumer and the contracts divisions were up 9.4%, 8.7% and 17.3% respectively in the first quarter.

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However as expected, the plumbing and heating division experienced a 3.7% decline in a "difficult trading period", particularly in the boiler market.

The company said that the prior-year comparator was particularly strong due to the government's ECO scheme which pulled forward boiler sales into the first quarter of 2014, while sales declines were also driven by the short-term disruption of its branch "re-segmentation" programme.

Chief executive John Carter said Travis Perkins' three priorities for 2015 remain unchanged: the modernisation of the group, the transformation of Wickes, and the re-segmentation of plumbing and heating.

He said: "The progress we are making underpins our confidence that the plans we have in place and the investments we are making will support further outperformance of our markets, medium-term double digit operating profit growth and continued growth in return on capital."