Travis Perkins posts strong Wickes performance

Travis Perkins (LON:TPK) shares rose on Wednesday as the British builders’ merchant and home improvement retailer updated the market on the performance of its business Wickes.

Shares in the company were trading over 2% higher on Wednesday afternoon.

The company announced in July last year that it intends to demerge Wickes.

In December, Travis Perkins said that the demerger was “progressing well”, and would be completed during the second quarter of 2020.

Commenting on the demerger, Travis Perkins said: “Acting as separate listed entities will enable the management team of each company to focus on delivering a distinct business plan to deliver the best service to their primary customer base, allocating capital and resources in the optimum way to deliver sustainable returns.”

Travis Perkins said on Wednesday that Wickes saw its like-for-like sales grow by 4.5% in the fourth quarter, whilst also recording a total sales growth of 3.4%.

Meanwhile, full year like-for-like sales grew by 8.7% and total sales by 7.7%.

“I am delighted to report a strong sales performance for Wickes in Q4 and for the full year, setting us up well for the intended demerger from Travis Perkins, which remains on track for Q2 2020,” David Wood, Wickes CEO, said in a company statement.

“I would like to thank all my colleagues for their hard work, dedication and focus on delivering for our customers, which has driven excellent performance across the year. We are looking forward to our future as a standalone business, building towards our vision of a Wickes project in every home, allowing us to create long-term value for all our stakeholders,” the CEO continued.

David Wood added: “We have great confidence in our strategy, which is centred around our strong brand, a distinctive and hard to replicate customer proposition, a uniquely balanced business and a low cost and efficient operating model. We are pleased with the growth Wickes is delivering and confident in our ability to continue to grow.”

Shares in Travis Perkins plc (LON:TPK) were up on Wednesday, trading at +2.10% as of 14:44 GMT.