Travis Perkins results show there is an improvement in the construction sector

Good the see the construction sector continuing to show good improvements.

Travis Perkins have this morning posted some good results. Let's hope that landscaping materials forms a big part of their numbers?

HIGHLIGHTS

Like-for-like revenue(2) increased by 10.2% with growth in all divisions

Adjusted operating profit(2) up 18.8% to £175m with adjusted operating margin(2) up 0.4% to 6.4%
EPS(2) improved by 21.6% to 53.4p
Interim dividend increased by 22.5% to 12.25p
Lease adjusted return on capital(2) employed improved by 1ppt to 10.5%
Strong free cash flow(2) with cash generated from operations up £56m to £222m
Net debt(2) reduced by £51m to £297m
Capital expenditure up 24% at £65m in the half
New fascias opened in every division, totalling 55 for the Group

John Carter, Chief Executive, commented:

"A combination of improving market conditions, increasing customer confidence and the successful introduction of a number of self-help initiatives has driven a strong first half performance.

Travis Perkins' success is built on our 23,500 team members who work hard every day to deliver great customer service. We have outperformed our markets and see good growth opportunities for stepping up our investment in the customer proposition, leveraging our superior scale, supply chain capabilities and for network expansion and format optimisation. These exciting organic growth opportunities along with a clear focus on return on capital should continue to create substantial shareholder value. Trading is consistent with our expectation and with lead indicators in our different markets encouraging, the Group is expected to show continued solid growth for the remainder of the year.

http://otp.investis.com/clients/uk/travis_perkins/rns/regulatory-story.aspx?cid=780&newsid=436489