Conditions to remain tough, says Travis

The group – one of the largest suppliers to the UK’s building and construction industry with a network of more than 600 branches – said it expected the merchanting sector to continue its gradual recovery this year, while conditions facing its Wickes DIY business were likely to remain soft.

Reporting underlying profits of £216.7m for 2010, an increase of 20 per cent on a year earlier, Travis said it had also made a positive start to 2011, albeit against easier comparisons with a year earlier.

Like-for-like sales in January were up by 22 per cent in merchanting, 12 per cent in retail and by 8 per cent at the BSS plumbing supplies business it acquired last year. Sales trends in February have weakened but remain in positive territory.

The Northampton-based company added: “Despite starting the year well we expect conditions for the next 12 months to remain difficult. The merchanting market fell by over 30 per cent from its peak in 2008 and although activity has picked up a little, from a longer term perspective, activity levels are currently around 20 per cent below their peak.”

Travis said all 11 businesses in its portfolio outgrew their rivals and increased profits in 2010, while it described the acquisition of BSS for £558m as a “major strategic step forward”.

With annual revenues of £1.35bn, the deal made Travis the leading player in the trade and retail distribution of plumbing and heating products.