Travis Perkins profits tumble

Travis Perkins has reported a loss in profit and revenue in the six months to June. 

The builders’ merchant said “challenging” market conditions had impacted its first half performance and outlook for the year. 

Highlights 

• Revenue: £2.47 billion (FY2022: £2.53 billion) 
• Adjusted operating profit (AOP): £112 million (FY2022: £163 million) 
• Operating profit: £107 million (FY2022: £157 million) 
• Profit after tax: £60 million (FY2022: £106 million) 
• Net debt: £274 million (FY2022: £306 million) 

Revenue (down 2.5%) and AOP (down 31%) performance reflected a weak market in private domestic repair, maintenance and improvement (RMI), and new build housing, said the company. 

While an adjusted earnings per share of 30.5 pence (down 41%) was the result of lower trading profit, phasing property profits, and corporation tax. 

Its interim dividend was maintained at 12.5 pence per share. 

Toolstation revenue was up 9% – with a new distribution centre in Northamptonshire due to open in Q3.   

Full year AOP for TP is expected to be around £240 million. 

“Market conditions have been challenging, which is reflected in both our first half performance and our outlook for the balance of the year,” said Nick Roberts, CEO. “The Group remains focused on striking the appropriate balance between seeking to protect shorter term profitability, delivering our strategic objectives and being well placed to benefit when market conditions improve.” 

Adding: “Whilst near-term trading is expected to remain difficult, we continue to work to position the Group to benefit from the long-term structural drivers in our end markets. The opportunities presented by the requirement to decarbonise the UK’s built environment and address the shortage of both private and social housing remain significant and our unique portfolio of businesses, coupled with the development of innovative solutions for our customers, will enable the Group to deliver long term growth and create value for shareholders.” 

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