Britain’s Travis Perkins sees more uncertain outlook for building materials inflation

Signage is pictured at a building in Travis Perkins, a timber merchants and construction yard in St Albans, Britain October 22, 2020. REUTERS/Paul Childs

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LONDON, April 29 (Reuters) – Travis Perkins (TPK.L), Britain’s biggest seller of building materials, said on Friday his forecast for materials price inflation, which had been expected to ease in the second semester, were now higher. uncertain.

The group, which trades from more than 700 UK branches, said rising prices were likely to make up a higher proportion of sales growth during the year than previously thought. .

Travis Perkins’ total sales for the three months to March 31, its first fiscal quarter, were 13.6% ahead of the same period last year when COVID-19 restrictions were still in place.

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The total turnover of the trading division increased by 17.9%.

“Prices accounted for about two-thirds of the growth as manufacturers’ increases continued to be passed on (to customers) in an orderly fashion,” the group said.

Travis Perkins’ expectations for the full year remained unchanged.

He said order books remain strong in UK construction, supported by the UK’s backlog of infrastructure works, the continued need for new housing and growing interest in efficiency projects. energy due to rising energy costs.

He said the construction supply chain had largely normalized by the end of 2021 and while the war in Ukraine and subsequent impact on the global economy may impact that stability, levels of stock were sound.

Shares of Travis Perkins, who last year set up his home improvement business Wickes (WIX.L), have fallen 18% over the past year.

($1 = 0.7983 pounds)

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Reporting by James Davey, editing by Paul Sandle and Elaine Hardcastle

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