Excellent operational performance; portfolio actions complete
Highlights
- Robust revenue performance driven by strong operational delivery and broad-based, RMI led recovery. Like for like revenue in continuing businesses* grew by 44.1% and was 14.5% ahead of 2019
- Adjusted operating profit of £164m (2020: £17m) up 14% vs 2019 resulting from higher volumes with solid gross margins, improved customer proposition and restructuring benefits
- Strong revenue and operating profit performance in Merchanting following decisive actions to refocus the business; challenging period of inflation and materials shortages being navigated well
- Toolstation market share gains continue; rollout on track in both UK and Europe
- Portfolio actions executed with successful Wickes demerger and Plumbing & Heating business sold to H.I.G. Capital for £325m with completion expected Q3
- Interim dividend reinstated at 12.0 pence per share; special return of capital from Plumbing & Heating proceeds post completion
- Increasing guidance for full year 2021 to at least £310m of adjusted operating profit for the continuing businesses reflecting higher property profits of around £30m
- Continued progress on setting industry leading sustainability targets consistent with the 1.5 degree pathway of the 2016 Paris Agreement
- Investor update to be held on 29 September to update on future plans to deliver long term sustainable value to shareholders
| £m (unless otherwise stated) | Note | H1 2021 | H1 2020 | Change |
| Revenue | 2,299 | 1,669 | 37.7% | |
| Like-for-like revenue growth1 | 17f | 44.1% | (19.3)% | |
| Adjusted operating profit1 | 17a | 164 | 17 | n/m |
| Adjusted earnings per share1 | 10b | 46.2p | 1.0p | n/m |
| ROCE1 | 17e | 12.1% | 6.9% | 5.2ppt |
| Covenant net debt1 | 14 | 105 | 22 | (83) |
| Dividend per share | 11 | 12.0p | 0.0p | |
| Operating profit | 168 | (79) | ||
| Total profit / (loss) after tax | 100 | (86) | ||
| Basic earnings / (loss) per share | 10 | 41.5p | (34.5)p |
1 Alternative performance measures are used to provide a guide to underlying performance. Details of calculations can be found in the notes listed
* The Retail and Plumbing & Heating segments are treated as discontinued operations with the prior year comparatives re-presented
Nick Roberts, Chief Executive Officer, commented:
“I am delighted with our performance during the first half of 2021. To have executed our planned strategic portfolio actions whilst delivering an excellent trading performance in ever changing market conditions is testament to the hard work and capability of our colleagues across the Group.
I am particularly pleased with the agility that our teams have shown in responding to rapidly evolving market dynamics whilst always maintaining their focus on customer, colleague and supplier safety.
This has been particularly noticeable in the Travis Perkins General Merchant where decisive actions taken during the previous two years have enabled us to respond rapidly to customer needs at a local level. Toolstation UK, meanwhile, is on course to deliver another excellent year of growth and our European rollout continues to gather pace.
Our businesses have continued to play a critical role in the construction sector’s ongoing recovery and, while some uncertainty still remains, the end markets for our trade-focused businesses remain robust.
As a result, I am cautiously optimistic around the outlook for the business and confident in our ability to make further progress in the second half of the year. We look forward to updating shareholders on our future plans in September.”
Analyst Presentation
Management are hosting a virtual results presentation at 8.30am. Please register at the following link:
https://www.investis-live.com/travis-perkins/60eda7c32527a916004ba1f4/typs
