Travis Perkins to ‘review options’ for Wickes

It comes as part of Travis Perkins’ plans to sell off its plumbing and heating division and “focus on serving trade customers” by driving returns from its “advantaged businesses”.

As part of its strategic review, Travis Perkins said it would focus on “strengthening the performance” of Wickes “in the short term”.

But it said that, in the medium term, it would “look to review the options for maximising the value of Wickes”.

Travis Perkins, which also owns Toolstation, admitted “the majority of group activity” comes from serving trade customers. It said that, following its strategic review, it would “focus on delivering best-in-class service to trade customers”.

The group aims to streamline its cost base, targeting further annualised cost savings of £20m to £30m over the next 18 months.

Travis Perkins boss John Carter said: “We have developed a clear plan to focus on delivering best-in-class service to our trade customers, and to simplify the group to reduce complexity, speed up decision-making and reduce costs.

“Our trade businesses hold strong positions in attractive markets, and these initiatives will enable us to concentrate our management time and capital in the highest returning areas.

“Our strong balance sheet and free cashflow generation, driven by growing earnings and lower capital expenditure, will underpin our commitment to drive shareholder value and a progressive dividend.”