Travis Perkins Share Discussion Threads

[madgooner] 23/12/2004 23:21

Well well, lol!

I'm happy with my absolute and relative returns..thanks anyway.

you still a buyer here? probability looks against you.

had an interesting chat with a pub valuer last night too ;-)

you'll know when I take positions..I'm old fashioned and research first..

oh and not always right..but then who is?

perhaps we should look at graphs of moni,twt and egs, for example,alongside them..?

[jeffian] 23/12/2004 23:18

Madgooner,

How is it that you always have 'no position' in stocks whose graphs rise vertically? Have you got the hang of this investment game?


Luckily, I hold both!

8-)

REgards, Ian

[madgooner] 23/12/2004 21:01

This is starting to look a bit binary.
A reasonable bid premium..or alternatively overvalued on fundamentals, or worse a home depot bid for a competitor which creates a monster of a competitor.

No position, but attracted to short side.

[zzaxx99] 22/12/2004 23:49

Waiting for Home Deport to "assault ... the UK market" is like waiting for Godot. They have been "on the verge" of piling in for at least the last 12 years, and have still done absolutely nothing. Doesn't mean they won't ever take the plunge, but don't ever hold your breath waiting for them.

[maywillow] 22/12/2004 22:01

LONDON (AFX) - US DIY giant Home Depot is poised for an assault on the UK
markets, with Kingfisher seen as the most likely target, according to The Mail.
Home Depot, the world's third largest retailer, reached second place in the
auction for Wickes, but was outbid by Travis Perkins, the paper said.
[e-mail]
el/slm/

[blank frank] 22/12/2004 20:53

From Telephone Maintenance Group (TEL) research note:
"Latest Contract Win
The latest new client to be won is Travis Perkins. The builders' merchant has annual sales of £1.6bn and operates from 700 locations. The contract here started in December [2003], and once again it is maintenance led. Once it is operating at full capacity, Travis Perkins will produce approximately £2/3m of revenue a year for TMG - approximately 12% of its revenue. This shows the potential impact of winning bigger clients as TMG concentrates on large companies outside the FTSE 100, rather than tiny ones."

I believe that Travis Perkins saved tens of thousands of pounds a year on their telephone maintenance by switching to TEL.



The takeover of Wickes should increase Travis Perkins's turnover by more than half, and will give it significant 'retail' (as opposed to wholesale) business. In addition, its share price rise should make it a fringe promotion candidate for the FTSE 100. All of which is good for TEL:
• Probable greatly increased revenues from the Travis Perkins contract.
• A breakthrough into the major retailers telecom market.
• Possible FTSE 100 company as a major client, with the increased status that goes with that.

As TEL have the telephone maintenance contract for the whole of Travis Perkins, I would certainly expect that this will also apply to Wickes when it becomes a part of the company. Which could effectively mean that the contract will be more than 50% bigger than before ... and it was pretty big already - especially as TEL has a market capitalisation of below £3M.

B.F.

[royaloak] 17/12/2004 09:16

Toffeman

Many thanks for your comments. I agree the chart does look good, perhaps a bit extended in the short term, but I will be interested in comments in the coming weeks and months.

It was just that out of the several stores I visited, only about two offered a good level of service, but of course I have noy looked into margins etc.. as you guys probably have.

I will keep watching, and follow this thread also. Many Thanks, ro!

[toffeeman] 17/12/2004 09:06

Oak,

you are wron - the market loved the proposed aquisition - just look at the chart!

I had a sell order in at 1475 which I cancelled when I read about the rumour in the Sunday papers.

I have wanted to short TPK for ages but the charts say it will go higher. The one thing is that if you do short you can set the limit at the placing price.

The big question is what they do with Wickes - can you manage the two concepts in the same way? Will there be real buying/cost synergies? Will they re-brand Wickes as T-P consumer?

It's certainly not a short at present - unless you have very deep margin pockets and an awful lot of patience.

[royaloak] 17/12/2004 08:54

Hi Guys

I am negative about TPK, have just posted my thoughts on the SBET thread. No. 6987

I could be very wrong and would appreciate your comments.

[buffin] 17/12/2004 08:23

I have come across a few of them in the past ... they must be very concerned. Still, should bring more attention to TPK.

[zzaxx99] 17/12/2004 08:21

I know a lot of people at Wickes H/O - not sure they'll be too thrilled at the "synergies", which are likely to come from H/O - but they'll be glad to get out from under the dead hand of Focus, who appear to be an utter shambles

[maywillow] 17/12/2004 08:03

TP snaps up Wickes for £950m

NICK BEVENS BUSINESS EDITOR


BUILDERS merchant Travis Perkins grew its presence in the fast-growing DIY sector yesterday after snapping up retail chain Wickes in a £950 million deal that will safeguard the future of the company's 6,300-strong workforce.

Travis will have 912 stores following the tie-up, adding the 172 Wickes outlets to its existing 740 depots.

The company said the acquisition would give it a "platform for growth" and push it into the number two slot behind B&Q, the DIY stores group owned by Kingfisher.

The enlarged group will have around 10 per cent of Britain's £28.5 billion DIY market, compared to B&Q which has 14 per cent of the market.

Travis chief executive Frank McKay said he did not envisage closing any stores or making any redundancies.

"We have been looking at Wickes for some time. It fits well into our strategy and will strengthen our existing builders' merchant business. Wickes has a similar customer profile to our own business and together the two will be a major force in the UK DIY market," he said.

Focus Wickes acquired Wickes - then comprising 131 stores - in September 2000. Since then it has grown through store roll-outs, the conversion of Focus stores and the development of the Wickes Extra format.

The Focus side of the business operates from 256 outlets and is the fourth largest DIY retailer in the UK.

The private equity owners of the business - Apax Partners and Duke Street Capital - said they will open more Focus stores after the sale of the Wickes stores.

Travis is financing the deal through a new £1.2bn borrowing facility, while it is also raising £75m through a placing of shares. The group has already identified £17.5m of cost savings next year rising to £35m a year thereafter. These will be achieved largely through its stronger purchasing power and streamlined distribution.

Wickes was at the centre of fraud inquiries in the late 1990s after suspicions about the company's accounts. In November 1996, the Serious Fraud Office began an investigation into suspected accounting irregularities.

In 1999, five former senior executives were charged with making false statements and fraudulent trading. One was found to have no case to answer and all the others were subsequently acquitted at their trial.

[buffin] 16/12/2004 15:40

Actually placed at 1530p.

[zzaxx99] 16/12/2004 14:01

Eyes it and buys it!

"LONDON (AFX) - Travis Perkins PLC confirmed this morning it plans to
buy the Wickes DIY operation from Focus Wickes Group Ltd for 950 mln stg.
The statement followed press reports saying the builders merchant was in
exclusive talks to buy Wickes "for a price close to 900 mln stg." Wickes
is the third largest DIY retailer in the UK with 172 stores. It generated
total sales of 911.1 mln stg in the year to end October 2004.
Travis said there are "substantial" synergies in the deal, estimated at
17.5 mln stg in 2005, rising to 35 mln a year thereafter, generated from
buying, distribution and process streamlining. It is expected to be
earnings enhancing next year. Travis also said it was placing 5 mln shares
at 1500 pence each to raise 75 mln stg.

In a separate statement, Focus Wickes said it expects to use a part of the
proceeds to redeem the 190 mln stg 10 pct Mezzanine notes due 2011 and the
140 mln eur 9.25 pct Mezzanine notes due 2011. Focus Wickes is to be
be re-named Focus. Following the sale of Wickes, Bill Archer will
continue as executive chairman of the Focus business. Geoff Wilson will
also continue as deputy chairman and Steve Johnson will be CEO of the
business."

[grupo] 05/12/2004 07:54

Travis Perkins eyes £600m bid for Wickes
By James Hall (Filed: 05/12/2004)


Travis Perkins, the building materials retailer, is considering a bid for Wickes, the DIY chain, in a move that would make it a significant force in mainstream UK retailing.



Wickes, which has 172 stores, is part of the Focus Wickes DIY group which has appointed Goldman Sachs, the investment bank, to review its strategic options, including a break-up or sale. Analysts believe Wickes could have a price tag of up to £600m.

Travis Perkins, which is acquisitive after seeing strong growth over recent years, believes that Wickes' position at the "hard" end of the DIY market would fit well with its existing chain of 740 outlets for professional builders.

According to leading figures in the DIY sector, Travis Perkins is looking "seriously" at launching a bid for Wickes. "It takes Travis Perkins into the wider consumer market place without diluting its brand," said the retailer.

"Travis Perkins has significant scope to grow. It has plenty of firepower on its balance sheet," said a banker close to the company.

Focus Wickes, which comprises 256 Focus stores as well as the Wickes chain, is controlled by private equity firms Duke Street Capital and Apax Partners. The majority of the rest of the shares are owned management, headed by Bill Archer, the retailer's executive chairman.

Though the private equity firms have yet to decide on whether to sell or break up Focus Wickes, analysts believe the group could be worth over £1.5bn.

Travis Perkins has a market capitalisation of £1.6bn and has seen its shares double to £14.31 since the start of 2001.
source:moneytelegraph

[maywillow] 25/11/2004 14:26

Bigger event

The DIY & Garden Show, which will be held in London from 16 to 18 January, will be the biggest event for four years. "The number of manufacturers from the UK is increasing, as is the number of international suppliers in the first year without a Cologne Fair," says sales director Paul Grinsell. It is expected that 22 companies will be attending from the USA as participants on a group stand organised by the Worldwide DIY Council. Among them will be the two big cooperatives, Ace Hardware and True Value. Other international exhibitors will be coming from Austria, Canada, Denmark, France, Germany, Holland, Slovenia, Switzerland and Taiwan. Together with the Totally Tools event for hand and power tools, which is to be held in parallel, more than 200 exhibitors are expected in London.




25 November 2004

[bj444] 25/10/2004 19:43

YES...IT WOULD HAVE BEEN A GOOD SHORT !!!!!!!!!!!!!!!!!!

[maywillow] 21/10/2004 19:25

DUBLIN, Ireland, Oct. 5 /PRNewswire/ -- Research and Markets
( has announced the addition of Builders
Merchants Market Report 2004 to their offering.
(Logo: )
The builders' merchants market encompasses sales of heavyside materials,
which include cement, bricks, gravel and concrete building blocks; lightside
materials, which cover bathroom accessories, ironmongery, heating and plumbing
equipment; and tools/tool hire, including power drills, pumps and compressors.
The prime market for builders' merchants is the private contractor market,
although some sales are made to the general public.
Several factors have affected the market over the past 3 years, including
health and safety issues for builders' merchants employees, the contentious
issue of the imposition of full rate value-added tax (VAT) on repairs,
maintenance and improvements (RMI), consolidation within the industry as three
major companies - Wolseley PLC, Saint-Gobain Building Distribution Ltd and
Travis Perkins PLC - dominate the market and potential competition in the
market from DIY stores. In addition, major issues that affect the construction
industry in general - notably the Sustainable Communities Plan and skills
shortages - indirectly influence the builders' merchants market.
Consolidation within the builders' merchants market provides a strong
infrastructure and has the advantage of offering high levels of investment and
human resources. However, this trend produces a challenge for the large number
of smaller builders' merchants operating in the market. In order to gain
buying power that is even broadly comparable to that of the major players,
small companies make purchases through buying groups, although the combined
spending power of these groups decreases as smaller companies are taken over
by large groups - the past 3 years (2001 to 2003) have seen numerous
acquisitions of small and medium-sized builders' merchants. Another issue of
concern is the possible threat posed by DIY stores in the small contractor
sector of the builders' merchants market. Although these stores do not offer
trade conditions, they have considerably longer opening hours. In addition,
DIY stores have a high standard of store presentation and packaging.
The builders' merchants market is likely to develop over the next 5 years
(2004 to 2008) through further consolidation and increasingly attractive
presentation, which will appeal to the wider DIY market. In addition, the
Internet will be used more to obtain business in the Eurozone countries. A
growing number of products will be specified and sold in accordance with CE
marking and it is possible that new components and types of customer will
emerge as new construction techniques are developed. Overall, the builders'
merchants market will be influenced by government building plans, interest
rate increases and possible difficulties with consumer debt, the latter two
factors having a depressing effect on market growth.
This Market Report analyses the UK builders' merchants market, which, in
2003, was estimated to be worth 10.1bn pounds, an increase of 3.5% on 2002.
During the past 2 years, growth in the UK construction market has supported a
widespread increase in demand for builders' materials through a
well-established network of builders' merchants..

Information provided in this report includes
-- Market Definition
-- Market Size
-- Industry Background
-- Competitor Analysis
-- Strengths, Weaknesses, Opportunities and Threats
-- Buying Behaviour
-- Current Issues
-- The Global Market
-- Forecasts
-- Company Profiles

Companies mentioned include:
-- BSS Group PLC
-- Grafton Group PLC
-- Saint-Gobain Building Distribution Ltd
-- Travis Perkins PLC
-- Wolseley PLC
-- WTB Holdings Ltd
-- Bradfords Building Supplies Ltd
-- EH Smith (Builders Merchants) Ltd
-- Gibbs & Dandy PLC
-- Heiton Group PLC
-- Ridgeons Ltd
-- Robert Price (Builders Merchants) Ltd
-- SIG PLC
-- Taylor, Maxwell and Co Ltd
-- William Wilson

For more information visit

[bj444] 11/10/2004 16:11

A director sold a helluvalot of shares in Sept.

So could it be a good short ?

[toffeeman] 17/9/2004 17:15

Well if I had been organised I could have shorted at the uncrossing price of 1475!

Interesting to see what happens Monday.

[toffeeman] 15/9/2004 09:45

Respect Ian - I look at the chart and see some tasty trading ranges - and I look at the accounts and see a significant pension deficit (I know it's closed to new employees).

cheers

[jeffian] 15/9/2004 09:34

Overbought? Nice steady growth business which is easy to understand, has transparent accounts, unlikely to produce any nasty shocks or surprises and trades on a historic PER of 13 which is likely to fall to around 11 if performance at the interim stage continues for the rest of the year? I don't think so!

Regards, Ian

[toffeeman] 15/9/2004 09:18

Is Dorothy getting overbought???......

Am I going to have a pop? - bloody spread....

had two goes at getting past 1465 - almost tempted to try a long and then reverse....

[zzaxx99] 06/9/2004 08:59

Wow - and there goes my "if it doesn't break the resistance = right shoulder this might be a short again" :-)

[zzaxx99] 06/9/2004 07:36

Didn't really turn into the drop I was hoping for, and has now rebounded fairly strongly, helped by its

Headlines:

"OPERATING PROFIT BEFORE AMORTISATION OF GOODWILL UP 15.3% AT £109.3 MILLIONPRE-TAX PROFIT UP 17.9% AT £95.3 MILLIONDIVIDEND PER SHARE INCREASED BY 25% TO 9.5p...."