Weak construction and consumer markets are making life tough for the UK's biggest building material supplier Travis Perkins.
In results that were symptomatic of the entire construction sector, Travis Perkins revealed like-for-like sales for the year so far were slightly down 1.8%.
Travis Perkins also operates a home improvement business as well as distributing building materials, and trades as Wickes, City Plumbing, Keyline, Tile Giant and BSS.
Last month also saw it roll out a new brand - a dedicated tool hire store called 'Hire It’ in 16 branches located throughout the north of England.
The chosen trade counters, which were already offering a hire service, now offer a wider portfolio of high quality tools, supported by the industry expertise of the specially appointed Hire It team.
Steve Day, operations director for Hire It, told Specifications Online: “Purchasing and maintaining tools and equipment can be a big drain on the profit of many construction companies. By extending the current hire offering in this region we can meet customer requirements through a financially viable solution, which guarantees high quality equipment.
“The dedicated Hire It team combines the service and availability found at traditional Travis Perkins counters, backed by the added strength of a hire offering. By rolling out this branch format, we're providing a convenient service that will go a long way to supporting our customers and their own businesses."
This follows Travis Perkins' acquisition of rival Tool Station at the beginning of 2012.
Mintel's director of retail Richard Perks told the Huffington Post: "These figures strike me as not too bad. The Wickes side of things looks OK too. The sales look pretty grim, but they are not really any worse than the market as a whole. I'm impressed with what Travis Perkins has done with Wickes. Retailing is very different to builders merchanting, yet Wickes has prospered as part of the group."
Company Watch business analyst Nick Hood told Huff Post UK low activity levels and pressure on consumers' personal budgets actually meant the small fall in sales by Travis Perkins should be considered an achievement.
“However, the fundamentals of its business model dictate a fragile overall financial profile, at least until the economic climate improves. We calculate health scores based on published accounts, and the rating for Travis Perkins is well below par at only 15 out of a possible 100, depressed by the stretched working capital position and the substantial level of intangible assets it carries from past acquisitions."