Home News Travis Perkins establishes ‘service-light’ COVID-19 trading

In a trading update ahead of today’s AGM, Travis Perkins has been running a “service-light” operating model since March and seen revenue fall around two thirds compared to the same period in 2019. The Group said it had taken steps to reduce cash commitments to conserve liquidity in the short-term including furloughing around half of the Group’s 30,000 colleagues.

Throughout the early weeks of the lockdown, around a third of the Merchanting branches and around half of all Plumbing and Heating branches were operating. These sites were  primarily running call and collect or direct delivery services to support essential construction programmes.

Wickes and Toolstation have been operating across the vast majority of their branch networks, with branches acting as fulfilment centres for transactions completed via digital channels for either direct delivery, or with essential items being available for collection within a designated time slot.

The Group has reduced its operating cost base by stopping all discretionary spend and accessing Government support schemes. The Group is benefitting from the business rates holiday and the deferral of VAT payments and it’s also in discussion with landlords about moving rental payments from quarterly in advance to monthly in arrears.

Since 20 April, the Group has been carefully opening more of its Merchant branch network, to give greater support to large construction firms and subcontractors as they restart construction sites, and give smaller, local trade customers improved access to products.

Nick Roberts, Travis Perkins Chief Executive, said:  “In light of the COVID-19 emergency, we have established a new operating model that has kept colleagues and customers safe, operating within Government guidelines, and enabling branches across all of the Group’s businesses to remain open. Moreover, we have provided essential services and support to keep the nation’s critical infrastructure maintained and operational and the UK’s homes warm, dry and safe during this time of need.

“We continue to adapt our operations, applying stringent social distancing and using technology to enable contactless operations, and we are therefore able to respond to the Government’s call to ensure that the construction industry can continue to deliver on crucial programmes and projects and be an engine for future economic recovery.

“As we move forward we will continue to adjust our operations, with our foremost priority to keep colleagues and customers safe and the industry supplied with the materials it needs.”

 

Read more related stories here.

Leave a Reply