General presentation of the Travis Perkins Company:
Let us now explore the Travis Perkins Company more in detail as well as the activity sector in which it operates with details of its services and major sources of revenue. You will thereby be in a better position to understand the challenges it faces and the company’s growth opportunities.
Travis Perkins is a British company that is specialised in the distribution of construction and renovation materials such as timber, bricks, cement, doors, paint, plasterboard, insulation products and other items such as plumbing supplies.
To better understand the activities exercised by the group it is possible to separate them according to the turnover generated by each type of activity:
- The professional distribution of construction materials represents the largest part of the group’s activities with 53.5% of the turnover.
- We then find the retail distribution of residential renovation products which represents 23.8% of the turnover.
- Finally, the remainder of the group’s turnover, 22.7%, is achieved from the distribution of plumbing and heating materials.
The Travis Perkins Group currently achieves its entire turnover in the United Kingdom and distributes its products through a chain of around 2,090 stores implanted throughout this area.
Know the competition to Travis Perkins shares:
Apart from knowing all about the Travis Perkins Company you will need to possess a good background knowledge of this company’s competitive environment. For this you need to know the company’s major competitors on the market so we will now examine the principal brands in this sector:
- Adeo: Previously known under the name Leroy Merlin, this holding company is the third largest worldwide group in the consumer goods, construction and DIY sector. It is also part of the Mulliez family group which is the parent company of the Leroy Merlin brand. This group is also responsible for the operation of the medium sized DIY groups Weldom, Bricocenter, Zodio, Aki, Bricoman and Probox which is specialised in the sale of materials to building professionals.
- Kingfisher: This British company created in 1982 is specialised in the retail DIY and construction sector and operates mainly in the United Kingdom.
- Hornbach: This is another DIY shop chain, German this time, which is specialised in the distribution of construction, DIY, and gardening products which belongs to the Hornbach Holding Group AG. This company currently operates 130 stores in Germany, the Czech Republic, Sweden, Austria, Luxembourg, Slovakia, Switzerland and Romania.
- Intergamma: Finally we would also follow the Dutch company Intergamma which is specialised in the management of materials and equipment stores through the Gamma and Karwei brands. This company has existed since 1978.
It is important to closely follow all the major news and events of these companies before launching into online speculation on the Travis Perkins share price.
The strategic alliances implemented by the Travis Perkins Group:
After examining all the major competitors of Travis Perkins we now offer you the opportunity to learn more about this company’s major allies with details on a few of its recent partnerships:
- Google: In 2017, the company notably formed a business partnership with the Google Cloud Platform for the use of the new Talend Data Fabric connectors that enabled a rapid analysis of the data from heterogenic sources in order to benefit from qualified data in real time. This collection of connectors enabled Travis Perkins to integrate, process, enrich and rapidly clean the data and execute high performance analytical searches in the Cloud and thereby obtain qualified information in real time. The native connectivity of Talend to various services in Google Cloud enables, among other things, an accelerated pipeline development of the Cloud data. Travis Perkins could thereby obtain the possibility of extracting pertinent and strategic information from a decision making point of view by analysing the structural and non-structural data.
- London Metric Property: In 2015, the London Metric Property Company announced the trade with Travis Perkins of the sale of the Travis Perkins distribution factory of 170,000 square feet situated at Brackmills to CBRE Global Investors for the amount of 14.4 million pounds sterling. This factory was originally purchased for the amount of 9 million pounds sterling in 2013. London Metric reconfigured its rental for a new ten year period with a return on cost of 8%.
We have primarily covered the recently undertaken partnerships of this company. To discover advantageous entry points onto the market for speculating in Travis Perkins shares we advise you to concentrate your attention on the announcements relating to future strategic alliances.
The advantages and strong points of the Travis Perkins share price as a stock market asset:
To know if a share price on the stock market will probably rise or fall over the long term it is necessary to know its major advantages and disadvantages. This is why we now offer you the opportunity to learn about the strong and weak points of this company.
Let us start this comparison with details of the major strong points of Travis Perkins that should enable the company to progress and develop with a rising share price:
- Firstly, the Travis Perkins Group benefits from long experience in the market as it has existed for over two centuries. This also shows that the company is capable of successfully adapting to different economic situations.
- The Travis Perkins Group also benefits from a strong brand image with its clients with a high degree of credibility and confidence.
- The expansion strategy of the Travis Perkins Group is also another of its strong points as the company tends to complete numerous strategic acquisition operations for its development.
- The size of this company, which currently employs over 20,000 people and possesses nearly 2,000 points of sale in the United Kingdom also underlines its solidity against the competition.
- Finally, the group is included in the FTSE 250 stock market Index which is composed of the share prices of the 250 largest British companies.
The disadvantages and weak points of Travis Perkins shares as a stock market asset:
Of course the Travis Perkins Group does not only offer advantages in terms of investment, there are also certain disadvantages. Here therefore are the company’s major weak points at present:
- Firstly we are disappointed by the fact that this group is not present on the international market. This essentially leads to a higher exposure to risk in the case of an economic recession in the United Kingdom, whereas this company’s competitors are present in a number of countries which lessens the risk.
- Finally, the second and last weak point of this company that we note is related to the direct competition in this activity sector which is very strong and implicates a limited part of this market and necessitates a strong competitiveness, notably concerning the sale prices, which does of course affect its profitability.