Growing activity in the housing market delivered a good year for builder's merchant and DIY group Travis Perkins, but investment in pricing proved a drag on profits at its Wickes business.
In the 12 months ended December 31 2013, the group as a whole pushed revenue up 6.3% to £5.1bn, 5.0% on a like-for-like basis. Operating profit grew 10% to £330m, and adjusted pre-tax profit was up 12.4% to £321m.

Travis Perkins' consumer division, which comprises Wickes, Toolstation and Tile Giant, saw sales grow 2.4% to £1.9bn, with like-for-likes up 1%. However profit within the division was down 2.7% to £63m as Wickes ramped up its pricing and promotional efforts, leading to weaker gross margins.

Nevertheless, Travis Perkins reported: "Good progress was made in consolidating warehouse operations, improving labour productivity following the introduction of auto-replenishment systems and through the downsizing and sub-letting of oversized shops."

Four Wickes stores were relocated or downsized during the year and two new stores were opened. In addition, there were nine Toolstation openings within Wickes stores, which are contributing to rent costs and helping to boost footfall.

This additional traffic is also driving profitability faster at Toolstation than in many of its new standalone shops, TP said, helping to deliver a year of double-digit like-for-like sales growth and network expansion.

Toolstation benefited from a "continued focus on customer service, strong availability and investments in ensuring the lowest prices in the market", according to the group.

TP chief executive John Carter said: "2013 was another good year for Travis Perkins, and the momentum in the second half of last year has continued into 2014. The group is well placed to benefit from the upturn in UK building activity and in particular the strength of housing transactions."