Travis Perkins, a peer of Grafton Group in the UK, has reported full year results this morning that came in slightly ahead of forecasts. For the year, revenue amounted to £5.148 billion (est. £5.0 billion), representing a 6.7% increase over 2012 levels. Profit before taxation for the twelve month period came in at £321 million (est. £315 million). Adjusted earnings per share for 2013 amounted to 103.6p (est. 100p). <p>

Travis Perkins had a good year driven by a recovery in demand for construction products in the UK leading to LfL volume gains across each of the company’s divisions. LfL sales for general merchaninting increased by 6.7%, by 8.7% for specialist merchanting while plumbing and heating LfL sales moved higher by 4.8% during the year. Consumer LfL sales were higher by 1% as the 4.7% increase in volumes was offset by a decline of 3.7% for prices. <p>

In terms of outlook, Travis Perkins management to that leading indicators for the group are positive leading in to 2013 with housing transactions increasing coupled with improving consumer confidence. Management also note that after several years of focusing on short term projects, they are now sufficiently confident in the longer term outlook that they will be increasing capex spending to between £130-150 million during 2014, comparing to the £119 million recorded during 2013. <p>

Overall, this is a solid set of results from Travis Perkins as the company continues to benefit from increased construction activity across the UK with leading indicators pointing towards continued growth in 2014 that is reflected in current market forecasts for Travis Perkins.
<p><h5>David Holohan</h5>


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