Travis Perkins warned that it this uncertainty continues, infrastructure spending, new construction, and the fix, maintenance and improvement market all are likely to be hit.
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Revenue increased 5.8 percent to 3.113 billion pounds from 2.943 billion pounds past year.
Travis Perkins reports a revenue increase of 5.8% and like-for-like sales up by 3.1%.
After a strong first quarter, like-for-like sales growth slowed in the second quarter, owing to a number of factors including the deferral of projects ahead of the European Union referendum.
The FTSE 100 has fallen in morning trading, as builders’ merchant Travis Perkins warned Brexit had created “considerable uncertainty” in the housing market, driving its share price down 3%.
“Our two-year like-for-like sales in July have been below the levels we experienced in the second quarter”.
“In our view, it is too early to precisely predict end market demand and we will continue to monitor the lead indicators we track and will react accordingly”.
In related news, insider Redfern, Peter purchased 7,019 shares of Travis Perkins plc stock in a transaction that occurred on Tuesday, June 28th. Travis Perkins also noted that it will modify its investment plans in line with market performance.
The group has numerous strategies to deal with cost price inflation, including switching to United Kingdom sourced products, increasing sourcing direct from manufacturers and improving efficiencies, as well as passing genuine cost inflation through to customers where it can not be avoided.
The company will pay an interim dividend of 15.25 pence a share, up 3.4% from 14.75 pence previous year.
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Commenting on the results, Graham Spooner, investment research analyst at The Share Centre, explains what it means for investors: “The main news coming from Travis Perkins first half results was that the group had suffered weaker demand in the run up to and period following the Referendum in June”.
