Travis Perkins firms up plans to offload Wickes

The builders merchant revealed last December that it was to “review options” for Wickes, as part of a drive to “simplify” the wider group and maximise value for shareholders.

Speculation had been mounting that Travis Perkins would ultimately seek to spin off the business – a plan it confirmed in its interim results statement this morning.

It said the decision to demerge Wickes reflected a “focus on advantaged trade businesses and the simplification of the group”.

Travis Perkins added: “The board believes that Wickes, under a management team led by David Wood, is well-positioned to thrive as a standalone business. Wickes will have the autonomy to execute on its strategy and allocate capital to its customer proposition and growth opportunities with a clearer focus.”

Travis Perkins boss John Carter hailed Wickes’ “strong turnaround in volume and profit performance” during the first half of its fiscal year, buoyed by performance in the kitchen and bathroom categories.

The chain registered like-for-like sales growth of 9.7% in the six months to June 30, driving adjusted operating profit up 49% to £52m.

Adjusted operating profit margin increased by 200bps to 7.5%.

Travis Perkins’ retail division, which also includes Tile Giant, raked in £695m in sales during the period.

As a whole, the Travis Perkins group, which also has merchanting and plumbing and heating divisions, enjoyed a 14.7% increase in adjusted operating profit to £195m, on sales of £2.7bn.