Travis Perkins plc’s recently published trading update states that “in light of ongoing challenging market conditions, full year adjusted operating profit (is) now expected to be around £240m.”
The Group reports that it “delivered a resilient performance in the first quarter but has not seen the anticipated easing of market conditions in the second quarter to date.” The bulletin, from Chief Financial Officer Alan Williams, continued: “Volumes in both the new build housing and private domestic RMI markets continue to be impacted by higher interest rates and weaker consumer confidence driven by persistent, higher than anticipated consumer price inflation.
“By contrast, the Group continues to see more resilient performance across its other end markets – namely commercial, industrial, infrastructure and public sector housing – and Toolstation continues to perform in line with expectations both in the UK and Europe.”
The Group says it is “driving the trading strategy to effectively navigate the near-term market conditions” alongside its ongoing focus on delivering operational efficiencies in the business. Here, “carefully targeted investment” will continue in order to ensure that the business “remains well placed to benefit from a recovery and the long term structural drivers in its end markets, including the long term undersupply of new housing and the retrofitting of domestic and commercial properties.”
Under the assumption that the “present conditions persist for the balance of the year,” Management now expects to deliver a full year adjusted operating profit of around £240m. The Group will report half year results for the six months to 30 June on 1 August 2023.
