Fri, 02 Aug 2019 | MERGER
Travis Perkins has revealed that it plans to demerge DIY chain Wickes as a standalone business, with a sale expected during the first half of 2020.
In a report sent to shareholders, building materials chain Travis Perkins stated that interim results for the six months to 30th June registered like-for-like sales growth of 9.7 per cent and total revenue of £695 million following the company's difficult 2018.
Additionally, the report noted that sale within the Wickes core DIY branch had greatly benefited from a clear trading plan, which had led to the addition of new ranges and to the introduction of number of improvements that allowed for increased product availability in store.
The news of the demerger follows an announcement from the Travis Perkins board last November, which revealed that Wickes was being reviewed due to the loss of almost a third of operating profits in the previous two years.
"I am delighted with the progress the group has made in executing the strategy set out at the capital markets event in December 2018 Wickes has delivered a strong turnaround in volume and profit performance, with gains in both core DIY and through the Kitchen & Bathroom showroom." Travis Perkins chief executive John Carter said.
"The demerger of Wickes is a key component of the overall Travis Perkins strategy to focus on trade customers and to simplify the group which the board believes will underpin the creation of enhanced value for shareholders."
The success of Wickes greatly contrasts with Travis Perkins' Plumbing & Heating business, which remains for sale and is expected to be sold within the next few months.
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