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Travis Perkins to issue trading statement

Travis Perkins will release a trading statement on Friday 17 October. The year 2014 has been good for the building supplies merchant and investors are hoping it will continue.

Travis Perkins flags
Source: Bloomberg

Travis Perkins is trading at £16.36. The share price is broadly unchanged since the company reported its half-year figures in July, in which profits increased by 19% to £162 million. The results were well received and the stock hit £17.70 in August, but it has been in a downward trend since then.

The largest supplier of building materials in the UK has benefited from the upturn in the British property market, low interest rates, and the Help to Buy scheme which triggered a turnaround in the property market. A slight cooling of property prices and moves by the Bank of England to restrict mortgage lending has led to a pullback in construction related stocks. 

The company will report its full-year figures in February 2015. Traders are expecting revenue of £5.56 billion and net income of £289 million, which compares with last year’s revenue of £5.14 billion and net income of £249 million.

Equity analysts are bullish on Travis Perkins. Out of the 24 ratings, 13 are buys, ten are holds and only one is a sell. The stock has bounced off £15.80 three times since July, and a positive update could put the share price on a path to £17.44.

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