Builders merchant Travis Perkins has increased its turnover by half following the acquisition of plumbing and heating supplies firm BSS
The firm’s 2011 annual report, published today, said revenue increased 51.6 per cent in 2011 to £4.8bn.
BSS, which the firm bought in 2010, accounted for 43.7 per cent of the increase in turnover and the merchanting division accounted for most of the remaining increase. Like for like sales rose 6 per cent including 4.7 per cent of inflation while the loss of one working day reduced sales by 0.3 per cent.
Pre-tax profits rose 37 per cent to £297m.
The firm said the takeover would enable it to cut £30m of costs in 2012, which is £5m more than its 2013 target.
Debt dropped by £191m to £583m helped by the £27m raised by the sale of tool distributor Buck and Hickman.
The firm said it was in the process of responding to the Office of Fair Trading’s concerns about its acquisition of Toolstation and was “confident that the issue will be satisfactorily resolved”.
It said like for like sales for the first seven weeks of 2012 were up 1.8 per cent overall, up 5.4 per cent in merchanting and 3.9 per cent in specialist merchanting. Despite the improved start to the year, the firm was cautious about prospects for 2012.
The report said: “The markets in which we operate are likely to remain subdued for much of 2012. We expect new house starts and mortgage applications, which are key indicators for our business, to remain relatively flat and public sector expenditure to fall as the government strives to reduce the deficit. Consumer markets are likely to be soft as disposable income is further squeezed.”
It said it would continue to reduce its debt, cut costs by integrating BSS into the group and outsell its competitors.