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June 22 (Reuters) - Travis Perkins, Britain’s biggest seller of building materials, on Tuesday raised its full year earnings outlook on strong recent trading but said high demand and the pace of the recovery were constraining the supply of some goods.
The group, which spun out its Wickes home improvement business in April and sold its plumbing and heating division in May, said the high levels of growth it saw in March continued throughout the second quarter, driven by the strength of both the domestic and commercial repairs, maintenance and improvement (RMI) markets.
Travis Perkins shares were up 6.8% at 1201 GMT.
Its merchanting businesses saw total sales growth during April and May of 6.3% versus 2019 - before the pandemic impacted trade.
The group said its Toolstation UK business continued to take market share with total sales year-to-date up 70.2% versus 2019 while Toolstation Europe continued to grow ahead of management expectations.
However, the pace of the recovery has led to challenges on both inflation and materials supply on a number of core products ranges.
“Whilst we are experiencing inflationary pressures across a number of product ranges, due to high demand and supply constraints, we are focused on working with both our suppliers and customers to ensure consistency of supply and fair outcomes for all,” said CEO Nick Roberts.
The group forecast adjusted operating profit for the continuing business in full year 2021 of “at least” 300 million pounds ($417 million). That compares with analysts’ average forecast prior to the update of 259 million pounds.
Last month British home improvement retailer Kingfisher cautioned that suppliers were struggling to keep up with order levels which could impact availability and prices for consumers.
It said the pandemic, together with events such as the Suez Canal container ship blockage, continued to place a strain on the international logistics infrastructure, in particular the cost and availability of shipping containers. ($1 = 0.7194 pounds) (Reporting by James Davey in London and Pushkala Aripaka in Bengaluru; Editing by Sriraj Kalluvila and Emelia Sithole-Matarise)