"Results time for listed companies is a case of managing investor expectations, and management can often issue overly cautious forecasts. It's a sensible practice to under-promise and over-deliver, as share prices typically rise and fall not on ..."
The Plumbing & Heating Division continues to hold this company back. A legacy of the BSS takeover with their low margin P&H contract customers.
The proposals to merge PTS & City Plumbing field management structure is overdue. Also, by setting up a P&H supply chain structure separate from the Group supply chain implies to me they may be considering flogging off the P&H division at the some time soon. Would not shed any tears if they did this.
See the Plumbing & Heating division still dragging them down. But stonking performance from the Contracts division. Management tend to underplay prospects and them surprise later. I can see good upside in the medium term.... please dyor.
Just bought in. If they can't do well during this home improvement boom then they'll be taken out by someone who can. Check the number of skips and the amount of building materials being delivered in your street/town.
.....with a drop on the previous days closing due to results.
This is overkill. What a buying chance with all of the UK needing housing long term and a chance for a quick 3% to 4% trade over a few days.
" It's been a shocking couple of weeks for the housebuilders. With the sustainability of sky-high house prices already causing serious concerns, a vote to leave the European Union was another nail in the coffin of this highly cyclical sector. Now, ..."
"Brexit remains the issue not just of the hour, and not even the next 14 days. The ramifications of the referendum on 23 June will likely be felt for years to come, and the impact on equities will be significant, for some more than ..."
Read AlphaValue's note on TRAVIS PERKINS PLC (TPK), out this morning, by visiting https://www.research-tree.com/company/GB0007739609
"Travis Perkins released its trading update for Q1 16, slightly below our estimates and ahead of market consensus. The lfl revenue was up 4.2% (vs Q4: +1.4%, Q3: +2.6%, H1 15: +5.7%) on the back on better RMI activity; new space addition further propelled total revenue growth to +5% (+6.2% on a comparable days basis) vs our estimate of 6.9%.
- General Merchanting: Lfl revenue was up 4.7% on the back of growth in the Benchmarx business, heavyside categories and timber (further supported by investment in new range centres).
- Contracts: Lfl growth moderated to +2.1% due to strong comparators in Q1 15 (+15.1%; although a better performance qoq, Q4 15: -1.9%). The conversion of 13 Keyline branches to the Travis Perkins brand in January eroded segment revenue by 2.2% ..."
Read AlphaValue's note on TRAVIS PERKINS, out this morning, by visiting https://www.research-tree.com/company/GB0007739609
"Travis Perkins (TP) released FY15 results slightly lower than our expectations, with revenue up 3.8% on a lfl basis and 6.5% on a reported basis (vs our estimate of +7.2%) to £5,942m and adjusted EBITA of £412.6m (7.6% growth yoy vs 8% guidance). The lfl growth rate moderated to 1.4% in Q4 after 2.6% in Q3 and 5.7% clocked in H1 due to the weakness in the RMI market in the second half. However, the market has seen an uptick in demand during January and February, which management sees as sustainable and instrumental for the 2-3% growth in 2016 ..."
Yes;I must admit I am happy to continue to hold the shares I have as I agree it is an excellent business but like much of the market the shares are a bit expensive for me to buy more!
The profit growth was a little slower than revenue growth,whether this is a reflection of increased competition or maybe perhaps the fairly heavy investment in new outlets increased short term costs.However the increased divi is welcome.
I would not like to put a target price on TPK, but they should see steady growth from here.
House builders that did well in 2014 included Persimmon, Barratt, and Taylor Wimpey: Bovis less well. I note that UBS, Panmure and Goldman Sachs all have a buy rating on Bovis. There is no reason to believe TPK can`t do well from here .
I would rather be invested in a supplier to all builders than in an individual builder .
Whichever government is in power after the next election, they will have to promote the building of more homes.
"The next few years could be extremely busy for builders and builders` merchants."
How right you are and only one year on.
I have a small holding with TP and increase when funds allow, Seeing as builders are now very busy, me being one, I wanted to know the views of others on potential long term SP.
As we know, TP have, I think, been very clever with thier cash, buying up compaines in the recession and building future market cap at low prices, so my thinking is about £33 ,
Seeing as TP were about the £24 mark so time ago, 8 - 10 years ago.
There is no real fact behind my thinking, just an assumption really,
anybody care to comment?
The fact that TP can get its interim results out within 4 weeks of end of first half accounting period;and for that matter annual results within 8 weeks of its yearend shows if nothing else the company has a tight grip on its financial affairs.
TPK seems to be falling in line with builders----see what Credit Suisse has been advising-----" the builders have been buoyed by the recent property market revival, but now is the time to start taking profits---bla bla-----To be very clear, we are not calling the top of the actual UK housing cycle , but we are calling the top of the equity cycle----bla bla----Underlying conditions in the UK market are clearly very strong now, but at current valuations we suggest that the equity market is already pricing the best of all possible worlds-------We may be a little early in this downgrade, but we would rather be early than a little late. " --Reported in the Telegraph yesterday.
Builders` shares may be pricing in the good news, but building activity will still increase ( must increase ) over the next few years. TPK should do well out of the increased activity.
With final results due next week we will soon be informed as to recent trading. However it is the medium to long term that interests me.
There is a lot of pressure to build new houses . new garden cities are being contemplated. Consider also the amount of flood and storm damage that will have to be repaired sooner rather than later. ( weather permitting: unfortunately increasingly imponderable ). The next few years could be extremely busy for builders and builders` merchants.
Don`t be surprised if business over recent weeks has been adversely affected by the weather, but look to the the long term potential.
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