Travis Perkins annual profits up 37 per cent
Reduces net debt by £191m.
Travis Perkins, a supplier of building materials to the building and construction industry, has posted a profit of £212.4m for the full year ended 31 December 2011, compared to £141.3m last year.
The company reported an operating profit of £290.5m for the year 2011 as against £219.8 previous year. In 2011, the company's revenue climbed 51.6 per cent to £4.77bn from £3.15bn in 2010, while basic earnings per share were 30 per cent higher at 90.3 pence.
Gross capital and investment expenditure totalled £121m in 2011. During the year retail businesses were affected by poor consumer confidence and lower levels of disposable income.
Geoff Cooper, CEO of Travis Perkins, said: "2011 was a good year for Travis Perkins. Despite a depressed construction market, we improved services to customers, gained market share, even before the expansion of our network and exceeded our targets from the integration of BSS, continued to outperform our markets, and won further market share. This meant we achieved a good set of financial results with improvements in all key figures."
Travis Perkins said it reduced net debt by £191m during the year to £583m by careful control of capital investment together with a strong focus on working capital management and integration synergies arising from aligning supplier payment terms.
Due to a fall in its number of housing transactions in the first half of 2011 and contraction in public sector expenditure, the company expects its trade market volumes to decline slightly in 2012.
Cooper said: "Having built the UK's largest distributor of building materials, we will be focusing on growing returns. With the prospect of the market softening as we go into 2012, the continued improvement in our offer to customers and gains from strategic developments will be the engine of this growth. Our management team has proven itself capable of performing well in tough markets and outgrowing our competitors. We look forward to another year of solid progress."
Travis Perkins employed 15,789 people as of 31 December 2012.