BUILDERS merchant Travis Perkins has shrugged off "challenging" market conditions to post a 7 per cent rise in profits, despite a fall in like-for-like sales at its Wickes showroom business.

The Northampton-based firm made pre-tax profits of £220.3 million in 2006, in line with consensus forecasts and boosted by stronger merchanting sales.

But overall like-for-like sales at Wickes, bought by Travis Perkins for £950 million in 2005, which has a store in Trinity Street, Bolton, fell three per cent over the year.

Trading for the first two months of this year saw like-for-like merchanting sales ahead 5.3 per cent, with a five per cent like-for-like increase in retail sales.

Chief executive Geoff Cooper said the company was well-placed to benefit from gradually recovering levels of consumer confidence, but added that further rises in interest rates could affect the group's performance in the second half of this year.