Travis Perkins sales up 6.8% and Wickes demerger 'on track'
Revenue was boosted by the retention of sales from the branch closure programme last summer and high levels of housing transactions fuelling higher RMI spend - although it said new build housing and commercial sectors remain subdued.
Like-for-like Toolstation sales jumped 42% in Q1, driven by its "digitally enabled and convenient sales proposition" and merchanting and plumbing and heating sales rose 15.5% and 11.4% respectively, propelling year-on-year group sales up 17.4%.
The group remains on track to open 60 new branches in the UK in 2021, with further encouraging progress in expanding the European business.
Nick Roberts, Chief Executive, said the group has enjoyed an encouraging start to the year with "robust like-for-like sales growth" across its businesses, underpinned by strong demand in the RMI market. "The Merchanting business has maintained the momentum seen in the second half of last year while Toolstation continues to outperform, driven by its convenient and trade focused proposition," he said.
The demerger of Wickes, the home improvement retailer, will leave the business "a simplified and trade focused group" he added, with new Travis Perkins shares operating from April 29.
Andy Murphy, Director Edison Group, said perhaps unsurprisingly, Travis Perkins is experiencing price inflation as the cost of certain raw materials increase, especially timber, copper and steel.
"At the moment, the company views this as manageable," he said. "There are also some shortages is certain lightside products imported from Asia and some key heavyside products. Again, these shortages have not had a material impact as yet.
"At this stage, the company is not guiding the market to move consensus, though the risks appear to be to the upside given the current trends. Travis Perkins is trading on 17.6x consensus PER for 2021E, compared to Kingfisher on 13x, Grafton on 18.3x, Ferguson on 22x and Howden Joinery on 24x."
The mean gender pay gap, which measures the average pay difference between Travis Perkins’ 28,000 male and female colleagues, narrowed to 5% in 2020 from 10% in 2019 (click here).
ReCreate project reuses concrete in new buildings
Reconciling the carbon conundrum in construction will not be a quick fix but researchers at Finland's Tampere University may have hit on a way of deconstructing concrete elements and reusing them in new buildings.
Its four-year ReCreate project, which has received €12.5 million of funding under the EU’s Horizon 2020 programme, involves universities and regional company clusters in Finland, Sweden, the Netherlands, and Germany. All the country clusters will carry out their own pilot projects where they deconstruct precast concrete elements intact and reuse them in a new building.
“By reusing concrete elements, we can save an enormous amount of energy and raw materials,” says Satu Huuhka, adjunct professor at the Faculty of Built Environment at Tampere University, who leads the ReCreate project. “We are specifically looking to reuse the concrete elements as a whole, not as a raw material for something new."
Researchers at the Faculty of Built Environment have been carrying out ground-breaking research into the circular economy in the construction sector for a decade.
Long-term research on renovation and the lifecycle engineering of structures provides a solid foundation for the development of quality assurance procedures that will ensure the safety and integrity of the reused elements. This time, the researchers are set to explore not only the technical implementation of the solutions but also the business perspective.
Huuhka acknowledges there are many unanswerered questions, from assessing structural integrity to building code requirements - and ultimately how to turn ReCreate into a viable business. "We must also consider the social aspects: does the process require new skills or new ways of working?” he adds.
Tampere University researchers will also bring to the project their specialist expertise in circular economy business models, building regulations and law, and occupational sociology. The Finnish country cluster comprises Tampere University, Skanska, demolition company Umacon, precast concrete company Consolis Parma, engineering and consultancy company Ramboll, architecture firm Liike Oy Arkkitehtistudio and the City of Tampere. The communications partner is the Croatia Green Building Council.
Buildings generate nearly 40% of GHG emissions and the rising pace of construction - up to 2 trillion square feet could be added by 2060 - means finding a sustainable concrete solution is essential.
Graphene concrete on firm foundations, CarbonCure accelerates growth and Nexii expands in US
Nationwide Engineering is claiming a world first today as it lays the world's first graphene concrete slab engineered for sustainability in a commercial setting. The new material is strengthened by around 30% compared to standard concrete and so significantly cutting material use.
It has partnered with the University of Manchester's Graphene Engineering Innovation Centre and structural engineers HBPW Consulting; graphene is an allotrope of carbon and the resulting mix with concrete produces a substance that area for area, is stronger than steel, it claims.
CarbonCure manufactures a technology for the concrete industry that introduces recycled CO₂ into fresh concrete to reduce its carbon footprint without compromising performance. It was named one of two winners in the US$20 million NRG COSIA Carbon XPRIZE and the money will be used to accelerate its mission of reducing 500 million tonnes of carbon emissions annually by 2030. Carbon Cure believes the use of CO2 in concrete is expected to become a US$400 billion market opportunity.
Nexii designs and manufactures high-performance buildings and green building products that are sustainable, cost-efficient and resilient in the face of climate change. It recently teamed up with actor and Pittsburgh native Michael Keaton, who will have an ownership stake and play an active role in Nexii’s upcoming manufacturing plant, which will be its second in the United States and sixth overall.