Builders Merchants Journal – BMJ Publishing to Builders Merchants and the UK merchanting industry for more than 95 years
Builders merchant group Travis Perkins has reported full‑year revenue of £4.56bn, down 0.9% on last year, as subdued construction activity continued to weigh on its Merchanting operations. However, the second half of the year delivered clearer signs of improved trading momentum and early progress in rebuilding market share. The Group reported an operating loss of £97m, compared with a £2m profit in 2024. This reflects £222m of adjusting items, including impairments relating to Toolstation Benelux, CCF and selected Merchanting branches, as well as the sale of Staircraft and wider restructuring actions. Only £8m of these items were cash‑related.
Group like‑for‑like revenue edged up 0.3%, supported by a sharper commercial proposition in H2 that helped offset operational disruption earlier in the year. Adjusted operating profit fell to £133m, down from £152m in 2024, reflecting lower margins in the Merchanting segment and increased promotional activity.
Merchanting delivered flat like‑for‑like revenue for the year, with 0.5% volume growth fully offset by 0.6% sales price deflation. Overall Merchanting revenue declined 1.7%, reflecting the divestment of Staircraft (0.7% impact) and one fewer trading day (0.6%).
Despite the subdued backdrop, the division saw a marked improvement in the second half. As the Group adjusted to its new Oracle system and regained commercial rhythm, management introduced a series of targeted actions aimed at restoring competitiveness. These included promotions in plasterboard, PIR insulation and class B bricks, alongside sales‑driven incentives and renewed investment in customer‑facing roles to lift service levels.
Group overheads remained broadly flat year‑on‑year, with cost inflation and higher employer national insurance contributions largely offset by proactive cost management. The business also undertook significant restructuring of central and regional roles during 2025 to streamline operations and protect margins.
CEO, Gavin Slark, who joined the Group as on January 1 2026. said: “We have made significant operational progress over the past year. We have a fully resourced senior management team in place, have successfully overcome the difficulties associated with implementing a new IT system and have taken action to reduce the administrative overheads in our central and regional teams.
We are actually in the strongest position in terms of cash that the group has had in over 25 years. And I think having a really strong balance sheet right now, given what’s happening in terms of the macro economic picture out there globally, and also what’s happening in UK construction, is a really strong place for us to be.
“I want to thank Geoff Drabble, our Chairman, for stepping in and supporting the management team last year and for putting in place the foundations of our recovery. I also want to thank all our colleagues for their dedication and effort in responding to these changes. I have no doubt that we can restore the Group’s performance and create significant shareholder value over the medium term.”
