Travis Perkins eyes sale of Wickes and plumbing businesses

The owner of Wickes on Tuesday hoisted a for sale sign over its plumbing and heating business while it readies the DIY chain for a possible sale too.

The move will help overhaul the structure of Travis Perkins as it plans to save up to £30 million over the next 18 months.

The FTSE 250 company will focus more on selling its wares directly to builders, it said in an update ahead of a meeting with analysts.

“The cost savings should enable profit progress even in a dull market,” said Liberum’s Charlie Campbell.

Analysts think the plumbing and heating business, which accounts for around 13% of the company’s profits, could fetch up to £500 million.

In recent months rivals including Kingfisher’s B&Q have been grappling with uncertain market conditions, which have put off shoppers from refurbishing or moving home.

The company also said it will try to spruce up Wickes before “reviewing” the business in the medium term, suggesting a sale might be on the cards.

It cautioned that “market conditions remain uncertain” but the “long-term growth drivers of the business remain robust”.

Separately, revenues and profits at plumbing and heating products seller Ferguson were held back by its UK arm. Revenues in Britain were down 9.5% to £607 million for the quarter to October 31, while profit fell from £21 million to £19 million.