Travis Perkins saw 2011 pre tax profit increase by 37 per cent in the face of a depressed construction market, it said today.
The builders’ merchant reported a 52 per cent hike in revenue from £3.15 billion to £4.77bn, with pre tax profit up to £296.7million, from £216.7m, for the year to 31 December.
This was largely down to the success of the acquisition and integration of BSS, the plumbing supplies business it bought in 2010 for £558m.
Outside of this, the performance was still solid. On an adjusted proforma basis, operating profits were up by £11m, an increase of 3.6 per cent, with like-for-like sales up 6 per cent.
BSS integration is ahead of schedule and reaped £20m of benefits rather than the £8m expected, with another £30m expected this year.
Excluding BSS, most of the revenue increase came from the merchanting division, with all businesses and product groups seeing strong growth. Sales increased in aggregate by £231m, or 10.9 per cent, with like-for-like sales improving by 9.4 per cent.
Chief executive Geoff Cooper said: “2011 was a good year for Travis Perkins.
“Despite a depressed construction market, we improved services to customers, gained market share, even before the expansion of our network and exceeded our targets from the integration of BSS, continued to outperform our markets, and won further market share.
“This meant we achieved a good set of financial results with improvements in all key figures.”
He said the firm is also looking forward to “another year of solid progress.”
A reorganisation last month means Travis Perkins now operates through four divisions; general merchanting, specialist merchanting, consumer and plumbing and heating.
The firm said this year has started “satisfactorily”, with like-for-like group sales for the first seven weeks up 1.8 per cent.
General merchanting is up by 5.4 per cent and specialist merchanting up 3.9 per cent. But sales for the retail – exluding Toolstation, the acquisition completed last month - have dropped by 3.1 per cent.