Market analysts have been advised to have a re-think after predicting, on average, that Travis Perkins was heading for £259m adjusted operating profit this year.
In a trading update Travis Perkins directors said that trading was going better than expected and adjusted operating profit was likely to top £300m.
“Following a robust start to 2021, the high levels of growth experienced in March have continued throughout the second quarter, driven by the strength of both the domestic and commercial repairs, maintenance and improvement (RMI) markets,” it said.
“The pace of the recovery has led to well documented challenges on both inflation and materials supply on a number of core products ranges. The group’s supply chain and network capabilities mean that it is well placed to manage these challenging circumstances, working closely with both customers and suppliers.
“Given the strong recent trading performance, the board now believes that adjusted operating profit for the continuing business for the full year 2021 will be materially ahead of market expectations and, assuming that there is no significant change in market conditions, will be at least £300m.
Travis Perkins recently sold its Wickes and Plumbing & Heating segments.