DAVY VIEW

Travis Perkins is at a very interesting juncture. An outsider, Nick Roberts, has just started as CEO and a significant strategic reboot is underway. The Plumbing & Heating division will be sold by the end of the year and, in a new development, the company intends to demerge Wickes. At this remove, the general strategic thrust looks logical: trim costs; simplify the operating structure; focus on areas of strength; and exit non-core areas. Full delivery will clearly take time but, on first glance, first-half results mark a step in the right direction. That said, adding to the complexity is the turbulent political and economic backdrop. Essentially a UK-only business, Travis Perkins is hostage to these variables and is, not surprisingly, cautious on the near-term outlook for the business.