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Travis Perkins' consumer division performs well in first six months of 2014

Published: 30 July 2014
The Travis Perkins consumer division, which comprises Tile Giant, Toolstation and Wickes, saw a like-for-like revenue rise of 6.8% during the first half of 2014.
Travis Perkins' consumer division performs well in first six months of 2014
During the six-month period to June 30, the consumer division experienced an 8.8% rise in revenue from £587m to £638m; this was despite significant promotional activity in the kitchen and bathroom market during the first quarter.

Both Tile Giant and Toolstation opened new stores during the period. Tile Giant opened one store, but closed three and Toolstation opened eight branches inside Wickes stores as implants and also opened a further seven standalone branches.

Rather than opening new branches, Wickes relocated two of its stores to optimise space and improve profitability.

Travis Perkins reported that these estate changes have been both profitable and return enhancing.

The next six months will see three new stores opening for Wickes, along with one further relocation, and at least 10 more stores opening for Toolstation.

Other changes to the consumer division during the six months include the strengthening of Wickes' management team. Ian Crook was brought in as the new marketing director in February, after spending 18 years in senior marketing roles with Tesco.

TP said that it was early days for the new management team, but that feedback from customers was encouraging. TP added that it believes it is now well placed to refine the strategy for the business and implement those plans in store.

Group chief executive, John Carter, commented: "A combination of improving market conditions, increasing customer confidence and the successful introduction of self-help initiatives has driven a strong first half performance.

"It is early days in executing the group's strategy, but all divisional teams have made good progress towards implementing those plans set out in December 2013. We have managed the business carefully to increase returns on capital whilst at the same time making strategic investments that should improve performance."

As a group TP saw its revenue rise by 11.5% to £2,730.5m from £2,449.5m in June last year.

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