Travis Perkins reports dip in profits at Wickes despite full-year sales rise
Travis Perkins saw a 2.4% increase in full-year revenue at its consumer division which includes DIY retailer Wickes and Toolstation.
In the year to 31 December 2013, revenue increased to £1.18 billion from £1.15 billion in the previous year while like-for-like sales grew by 1%. However segment profit fell 2.7% to £63 million following significant investments in pricing and promotional offers at Wickes.
The group said sales improved throughout 2013 after protracted cold weather at the start of the year impacted trade.
Four Wickes stores were relocated or downsized during the year and two new stores were opened. New web and mobile platforms were introduced with the aim of offering customers a better online shopping experience.
Never Miss a Retail Update!Travis Perkins said double digit like-for-like revenue growth at Toolstation was driven by a continued focus on customer service, strong availability and investments in ensuring the lowest prices in the market.
The group added that its recent initiative to install Toolstation concessions in Wickes appeared to be resonating well with customers and was helping to drive additional footfall to both retailers.
Across the wider Travis Perkis Group adjusted profit before tax rose 12.4% £321 million while revenue increased 6.3% £ 5.1 billion.
Travis Perkins 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.
“We remain focused on a disciplined approach to investing in the opportunities we see in each of our businesses to grow and improve returns.”
