Builders merchant group Travis Perkins has posted a fall of 2.5% in revenue and 31% in adjusted operating profts for the six months to June 30 2023.
The announcement today (August 1) showed sales were £2,472m and operating profit £112m reflecting weak market volumes in private domestic RMI and new build housing
The merchanting division saw resilient demand across commercial, industrial, infrastructure and public sector markets, although significant weakness in new build housing and private domestic RMI markets meant revenue was down 4.5% overall and operating profit 23.5% lower.
Toolstation saw revenue up 9.0%, and its new partly-automated 500,000 sq ft distribution centre in Pineham, Northamptonshire, which will drive long term operational efficiencies, is on track to open in Q3.
Nick Roberts, chief executive officer, said: “Market conditions have been challenging, which is reflected in both our first half performance and our outlook for the balance of the year. 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.
“Given the market backdrop, we are relentlessly focused on meeting our customers’ needs in core categories and supporting our local branch managers to grow share of wallet, particularly with general builder and professional trade customers, by making it simpler and easier to transact with us through our digital channels and in our branches.
“I am pleased with the continued progress we are making on the development of value-added services, as shown in the growth of Managed Services and Hire, and also with the market share gains coming through in Toolstation.
“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.”