Dividend remains suspended as Travis Perkins restarts Wickes spin-off
2 March 2021, 10:54
Travis Perkins swung to a pre-tax loss last year.
Travis Perkins has withheld its dividend to shareholders after it took Government support last year, it said on Tuesday.
The business said that it would not pay a final dividend for 2020, after suspending payouts in March as the pandemic hit. Shares dropped 2.5% on Tuesday morning.
Assuming there is no further deterioration in conditions, Travis expects to pay out a dividend this year.
However, the company’s planned split from subsidiary Wickes will start up again sooner than Travis Perkins’ dividend.
The company said that the demerger, which was put on hold amid the pandemic in March, will now complete during the second quarter of this year.
Most of the work for the split had already been performed before it was put on pause, Travis Perkins said.
“In addition, I am pleased today to be able to confirm that the process to demerge Wickes has recommenced,” said chief executive Nick Roberts.
“The Wickes digitally-led model has proved highly effective during the pandemic and the business is in great shape to embark on its journey as a standalone entity.”
Wickes saw its like-for-like sales rise 5.5% last year, with DIY sales booming 19.3%.
Many home improvement retailers have performed well during the pandemic, as people stuck inside took to doing up their flats and houses.
It performed better than Travis Perkins’ business as a whole, which swung to a £7.7 million pre-tax loss, down from a profit of £180.8 million a year earlier. Revenue dropped 11.5% to £6.2 billion.
“2020 was a year of unprecedented challenges and I am full of admiration for the energy and determination of our colleagues to ensure the safety of our customers, suppliers and each other,” said Mr Roberts.
He added: “Whilst uncertainty remains, we have seen a good recovery through the second half which gives us confidence that the fundamental drivers in our markets are robust. The continuing progress against our strategic plans leaves the group well placed to outperform in those markets.”
