UK's Travis Perkins says demand may waver ahead of election

* Says upcoming election may create short-term volatility

* 2014 earnings rise 15 pct

* Shares (Berlin: DI6.BE - news) down 3.4 pct (Recasts, adds CEO comments, shares)

By James Davey

LONDON, March 3 (Reuters) - Travis Perkins (LSE: TPK.L - news) , Britain's biggest supplier of building materials, cautioned that trade could be disrupted ahead of the May 7 general election as customers hold back on big purchase decisions.

The group, which runs 18 brands including Travis Perkins, Wickes, City Plumbing, Keyline, Tile Giant and BSS, across 1,900 UK outlets, said that if previous national elections were anything to go by, the six to eight weeks leading up to the poll were likely to see more subdued demand.

"Just working on experience of different elections, it just goes a little bit quiet," Chief Executive John Carter told Reuters on Tuesday after Travis Perkins posted a 15 percent rise in 2014 earnings.

"The important thing is that we are still confident of increasing our earnings during 2015 by low double digit (percentage)," he said.

Carter did not specify why customers might hold back on big purchases, but the level of uncertainty surrounding the election has not been seen in Britain since the 1970s.

The poll is likely to be the closest in memory because of the rise of anti-Europeans and Scottish nationalists, with no clear winner in prospect.

The ruling Conservatives have sought to portray the opposition Labour Party as a danger to Britain's economic recovery. Meanwhile, Labour has accused the Conservatives of pandering to big business and being out of touch with the struggles of ordinary voters.

FIVE-YEAR PLAN

Carter noted that the underlying macro backdrop was generally favourable with employment rising, mortgage rates at a historic low and wage price inflation now above consumer price inflation, which meant disposable incomes were rising.

However, he stressed: "Our plan really is predicated more on self help and improving our businesses to take share and not just be completely governed by the macro economics."

About 80 percent of Travis Perkins' business comes from the repair, maintenance and improvement (RMI) market, with the balance from the new-build market.

Carter is one year into a five-year plan that aims to modernise the group's main general merchanting operation, transform Wickes and reconfigure its plumbing and heating businesses.

Travis Perkins entered the FTSE 100 index of Britain's largest companies in June last year and its shares have increased 16 percent over the last six months.

But they were down 3.4 percent at 1019 GMT as comments on the short-term outlook took the shine off a 14.9 percent rise in 2014 earnings.

Adjusted earnings per share were 119 pence in 2014, ahead of an average analyst forecast of 116.3 pence, according to Reuters data, and 103.6 pence made in 2013.

Adjusted profit before tax rose 12.8 percent to 362.3 million pounds ($558 million) as revenue increased 8.4 percent to 5.6 billion pounds, with sales from outlets open over a year up 7.3 percent.

The firm is paying a total dividend of 38 pence a share, up 22.6 percent.

($1 = 0.6496 pounds) (Reporting by James Davey; Editing by Sarah Young and Pravin Char)