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Travis Perkins rides out supply chain challenges to lift annual profit view

Travis Perkins rides out supply chain challenges to lift annual profit view
Travis Perkins rides out supply chain challenges to lift annual profit view   -   Copyright  Thomson Reuters 2021
By Reuters

– UK building materials supplier Travis Perkins raised its profit forecast on Thursday for the third time in five months on the back of pent-up demand and said it was navigating supply chain and cost inflation challenges “very capably”.

Britain’s construction industry showed signs of a strong recovery during the first half of 2021 before a spike in raw material prices and supply chain disruptions stalled growth in recent months.

The country’s largest seller of building materials said it was navigating the “well-documented supply chain and cost inflation challenges very capably”, adding that end-market demand remained robust.

Travis Perkins, whose merchanting business involves the sale of wood, sand and all types of building materials, said like-for-like revenue growth was 13.1% in the third quarter.

The FTSE mid-cap firm now expects at least 340 million pounds ($467.16 million) in adjusted operating profit for the year ending Dec. 31, 2021, above the company-compiled analysts’ estimate of 316 million pounds.

($1 = 0.7278 pounds)