Builders merchant Travis Perkins returned to profit and reinstated its interim dividend following a recovery in its repairs, maintenance and improvement (RMI) markets .
Pre-tax profit for the six months to June 30 came in at £145.7m from a loss of £94.5m last year. Revenue jumped to £2.3bn from £1.66bn. A 12p-a-share dividend was declared.
“Given the additional property profits resulting from the highly successful post-restructuring disposal programme, adjusted operating profit for the continuing business for 2021 is now expected to be at least £310m,” Travis Perkins said on Tuesday.
Travis Perkins recently sold its plumbing and heating business and spun off its Wickes DIY chain as a separately listed company.
The company said that while there was some uncertainty remained due to the ongoing Covid-19 pandemic, coupled with inflationary pressures and product supply issues, it expects the RMI market to remain strong “for some time to come and for new housing to continue on its recovery path”.
It added that it planned to return the £325m from the plumbing and heating sale to shareholders via a 35p special dividend as soon as practicable and start a share buyback.
“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,” said chief executive.
