Builders Merchants Journal – BMJ Publishing to Builders Merchants and the UK merchanting industry for more than 95 years
Group revenue at builders merchant group Travis Perins was down 5.7%, for the three months to September 30, a fall driven by the group’s Merchanting segment.
There was a more robust performance from Toolstation, where revenue rose 2.9% in the UK and Benelux like-for-like sales were up 9.6%. The loss-making operations in Toolstation France have ceased trading and will be fully closed by the end of the year.
Adjusted operating profit is expected to be around £135m.
The General Merchant division saw a loss of market share over the Summer, pushing the Merchanting segment revenue down by 8.2% on a like-for-like basis, with both volumes and margins underperforming expectations.
The new CEO, Pete Redfern said: “My first few weeks at Travis Perkins Group have reaffirmed that this is a business with many strengths – the quality of our nationwide branch network, strong customer and supplier relationships and, above all, an experienced team of branch managers and commercial leaders within the business. Travis Perkins Group plays a critical role in the construction industry. Connecting our customers with the products and tools they need and removing the friction from fragmented and complex supply chains will be core to our strategy.
“However, it is clear that the Group has allowed itself to become distracted and overly internally focused which has led to the underperformance in recent periods. We now need to get back to a focus on operational execution – delivering great products and great customer service and better leveraging our reach and scale.
“Over the last nine months the team has made good progress on implementing cost discipline, improving working capital management and exiting Toolstation France. In addition to supporting these ongoing actions, my immediate priorities are driving and incentivising branch-led performance and motivation, identifying further ways to make the business run more efficiently and ensuring that we turn and face the anticipated recovery in the UK construction market.
“During this important period, I will combine the roles of Group Chief Executive and Managing Director of the Travis Perkins General Merchant business. This will allow me to shorten reporting lines and develop our new strategy, working closely with the operational leaders of this business as well as the Group Leadership Team. I am confident that together we can bring significant improvements in performance and the execution of change.”
