“Challenging trading year” costs Travis Perkins dear

Builders merchant group Travis Perkins saw operating profits wiped out, as it slipped to a pre-tax loss profit loss of -£77m, for the year ended December 31 2024, on group sales revenue that was, at £4.607bn, 4.7% down on the year before. The fall was, it said, driven by price deflation, continued decline in market volumes and underperformance of its Merchanting segment.

Full year adjusted operating profit of £152m represented a fall of 23%, compared with 2023’s £198m, though the final operating profit of £2m (2023: £161m) reflects trading performance, as well as adjusting items of £139m related to impairments in Staircraft and certain Merchanting branches and restructuring.

The Group’s Merchanting businesses saw revenue fall by (6.2)% in the year to £3,786m as a result of price deflation and the depressed levels of UK construction activity and an intensely competitive backdrop. Five general merchanting branches and one CCF branch were opened during the year, with 51 merchant branches closed, most of them Benchmarx, but also nine general merchanting and one Keyline.

Toolstation UK saw adjusted operating profit up 48% driven by robust sales growth, improved gross margins and supply chain and overhead efficiencies, pushing sales up 2.5% to £821m.

On 10 March 2025, Pete Redfern resigned as Chief Executive Officer as a result of ill health, and chairman Geoff Drabble, is working with the management team during the interim period.

Drabble said: “Since joining the Board of Travis Perkins, I have been encouraged by the breadth and depth of our market footprint, the quality and commitment of our people and the strength of our relationships within the construction industry. However, it is clear to the management team that there are a number of areas where the business needs to refocus and change the way it operates in order to better serve our customers and effectively support our suppliers. Several initial steps have been taken under Pete Redfern’s leadership to begin rebuilding trust and confidence, both internally and externally, with focused leadership roles restored in all our businesses and actions taken to re-engage and motivate our teams. These changes will make our businesses more responsive and bring them closer to our customers.

“Whilst uncertainty remains regarding the strength and timing of a recovery in UK construction activity, with more resources re-deployed into customer-facing roles, the Group is now better placed to benefit from returning demand. This will be supported by disciplined capital allocation, focused on upgrading and protecting our core competitive advantages, and a clear customer-focused strategy owned by the leaders of the business. I am confident that this approach will provide attractive returns for shareholders over the medium-term.”