Property boom boosts Travis Perkins

THE boom in UK house prices has helped construction materials group Travis Perkins hike half-year profits by 18%.

The firm, which earns 70% of its money from repairs, maintenance and improvements to homes, reported pre-tax profit of £95.3m, up from £80.8m a year ago.

However, the company was unsure about the future for UK property.

'It remains to be seen what effect higher interest rates and the slowdown in house price inflation may have on consumer confidence,' Travis Perkins said in a statement.

'However, with the increased investments made from our strong free cash flow we are in a good position to make further progress.'

Travis Perkins and other companies connected to the housing business have benefited in recent years as Britons, 60% of whom own their homes, have been on a house-buying and fixing spree. The average house price rose 21% in the past year to £160,565, according to Britain's biggest lender Halifax.

There are signs that the Bank of England's interest rate rises have had the intended effect of calming runaway markets. The Halifax survey showed a 0.6% fall in prices during August.

Travis Perkins' shares were up 20p at 1370p in early trading. They have underperformed peers on London's construction and building index by about 2% since the start of the year.

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