Rush to beat VAT rise lifts Travis

Travis Perkins said like-for-sales per trading day at Wickes were up 4.2 per cent in the eight weeks to November 27, compared with a 0.1 per cent decrease in the first nine months of the year.

The Northampton-based company reported some evidence that shoppers have brought forward purchases of DIY products before VAT increases from 17.5 per cent to 20 per cent on January 4.

Sales of products for kitchens and bathrooms were up 12.5 per cent in the first 11 months of 2010, Travis added, amid signs in the industry that people are improving their homes rather than moving.

Its Travis Perkins builders merchant yards also showed an improving trend in recent weeks.

Like-for-like sales per trading day increased by 10.5 per cent in the two months to the end of November, compared with 7.1 per cent in the first nine months of the year.

While the company increased its sales and market share in October and November, it warned that sales in December were impacted by heavy snowfall.

Travis, which employs more than 14,000 people and has around 1,200 outlets in the UK, said its outlook for 2010 remained unchanged. It expects to see modest growth in its builders merchant business in 2010 but consumer worries will produce a small fall in sales at Wickes.

Meanwhile, Travis said it had completed the takeover of plumbing supplies specialist BSS in a deal worth 558m.