Builders Merchants Journal – BMJ Publishing to Builders Merchants and the UK merchanting industry for more than 95 years
Sales at builders merchant group Travis Perkins plc fell 4.4% in the six months to June 30, its has published half year results revealed this morning (August 6).
Lower volumes and the added impact of price deflation on the group’s Merchanting division gross margin saw adjusted operating profit fall to £75m from £112 for the same period a year ago.
The full year operating profits are expected to be around £150m, which includes losses of £16m related to the underperforming Toolstation France, which the Group is on track to exit by the end of the year. Toolstation UK, however, continues to gain market share.
Nick Roberts, Chief Executive Officer, who is leaving the business, says: “Trading conditions have remained challenging through the first half of the year and we have continued to prioritise delivering for our customers whilst also recognising that a persistently lower volume environment means that we have to deliver a simpler, more efficient business. Whilst market conditions have impacted on our trading margin, we have made good progress on managing our overhead base and generating cash. With a new government quickly setting out its plans to reform planning to deliver more housing and infrastructure, and the expectation of an easing in macroeconomic conditions, the Group is focused on ensuring that it is well placed to maximise the benefits from both a future recovery in demand and the long term requirement for the UK to expand and decarbonise its housing stock.”
The new CEO, Pete Redfern, and new Chair designate, Geoff Drabble, will join the Group in September and October respectively. Both will bring extensive construction sector experience and listed company expertise.
