Sales down at retail arm of building materials group
Retail sales at Travis Perkins fell further in July and August and are unlikely to recover before mid-2006, the building materials firm admitted today after posting a 9.3 per cent rise in first-half pre-tax profit.

Sales at the Wickes retail arm, which accounts for about a third of turnover, fell 7.4 per cent in July and August, compared to a 4.9 per cent decline in the six months to the end of June. It blamed low consumer confidence and a sluggish housing market for the deterioration.

Travis Perkins reported a first-half pre-tax profit of£110 million, up from£100.6 million a year ago. Turnover was up 41.3 per cent to£1.29 billion, after the£950 million acquisition of Wickes in February.

The company said that a project to integrate operations across its trade and consumer channels is running ahead of schedule and should bring cost savings to the business this year.

'I think the way things look at the moment it's probably spring 2006 before we see the housing market pick up and that will then flow through, three, six, nine months later,' said chief executive Geoff Cooper.

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