Insider Media Limited

Revenue has soared more than 54 per cent at Northampton builders' merchant Travis Perkins. The company revealed this morning that pre-tax profit had also grown by a quarter to £140m in the first six months of the year. Chief executive Geoff Cooper warned that the market backdrop remained difficult and would "continue to put pressure on weaker competitors".

Revenue was up 54.2 per cent at £2.24bn, up 7.2 per cent on a like-for-like basis. Adjusted pre-tax profit stood at £140m, a rise of 25 per cent.

Underlying net debt was reduced by £87m to £696m.

During the six-month period to 30 June 2011, the company acquired 13 sites from fallen DIY chain Focus at a cost of £8m.

In the company's merchanting division, sales increased by 10.7 per cent compared to the comparable 2010 result.

Its Wickes division performed well in a difficult market, said the company, as it gained a further 3.6 per cent of organic market outperformance over the six months.

Sales also increased at its ToolStation sites, of which there are 94 across the UK. Revenue was up 35 per cent for the first half.

Travis Perkins said the integration of BSS, which it bought in 2010 in a deal worth about £800m, was "progressing well". The division's operating margin increased to 4.3 per cent over the period, and the company said its synergy programme was on track with a £15m benefit expected in 2011.

The company said it would produce its estimated annual synergy savings from the acquisition, worth £25m per year, earlier than expected.

Exceptional operating costs of £3.5m were incurred as a result of the BSS integration programme, said Travis Perkins.

Geoff Cooper, chief executive, said: "The difficult market backdrop will continue to put pressure on weaker competitors and will lead to further consolidation in our markets, particularly in merchanting. We are now the largest provider of building materials in the UK, and we have market-leading customer propositions that are delivering further gains in market share.

"We also have an excellent track record of outperforming our market and driving financial performance over a sustained period and consequently look forward to the future with confidence. Our outlook for the full year remains unchanged with a weaker trading pattern being offset by our achieving BSS synergies earlier than expected."