Shares in Travis Perkins were up over five per cent on the FTSE 250 after the builder's merchant said it expected to begin paying dividends again later in the summer.

The group said that trading had continued to be strong in the first half of the year, despite a slow start at the beginning of the year, leading the company to predict results ahead of expectations for the half year ended 30 June.

Group revenue for the half year was reported to be up 4.7 per cent, while like for like sales increased 3.4 per cent.

In the half year the company said that its Merchanting Division saw an increase in revenue of 6.1 per cent, with like for like sales growth of 5.3 per cent.

The Retail Division for the 26 weeks to 30 June saw an increase in sales of 2.1 per cent, however like for like sales dropped 0.4 per cent.

The group said that thanks to its trading performance it anticipated recommending a dividend of five pence per share when its interim results for the half year are announced on 29 July.

Geoff Cooper, Chief Executive of Travis Perkins, said, "We are pleased with the overall progress the Group has made in the first six months of the year. Current trading continues to be ahead of management expectations and we now have the confidence to contemplate recommencing paying dividends. We expect to give an update on our discussions with The BSS Group shortly."

By 10:26 shares in Travis Perkins were up 5.43 per cent on the FTSE 250 to 747.50 pence per share.