Travis Perkins plc has announced its interim results for the six months ended 30 June 2020, stating that the business has “successfully adapted” to the unprecedented market conditions.
The headline news from TP’s interim results include a 20% fall in revenue, however the business is adamant that this demonstrates “resilience despite the impact of the pandemic” and declares that its recovery is ongoing following the easing of the lockdown measures.
An adjusted operating profit of £42m is reported as reflecting the shortfall from lower volumes, which has been partially offset by the actions taken to reduce and control operating costs. It notes that arestructuring programme is underway to reduce the firm’s overheads in line with the anticipated volume outlook, delivering cost savings of £120m on an annualised basis.
In terms of Travis Perkins plc’s strategic and operational progress, the report outlines how the company “rapidly adapted the business model to ensure safety and deliver outstanding customer service throughout the pandemic”, including the acceleration of its strategic plan “across digital enablement, customer fulfilment, process simplification and branch network”.
Significant improvements in its digital platforms are said to have been recorded across all segments, “underpinning market outperformance and supporting future growth”. Additionally, it reaffirmed the decision to pause the demerger of Wickes until “markets become more stable and predictable”.
Nick Roberts, Chief Executive Officer, commented: “Throughout the pandemic, the health and safety of our colleagues and customers has been our primary concern. Customer interactions have changed significantly resulting in changes to the way we do business, from increased activity through digital channels through to alterations to our physical store formats in order to maintain safe working practices.
“Although our financial performance in the first half of 2020 was impacted by the Covid-19 pandemic, and we have had to undertake a restructuring programme in light of the challenging outlook for the Group’s end markets, we have made significant strategic and operational progress against the four strategic priorities we outlined at our full year results in March 2020.
“Although considerable uncertainty around the impact of the COVID-19 pandemic remains, the actions we have taken to adapt and innovate in our businesses mean that the Group is well placed to continue to service our customers, support our colleagues, outperform our markets and generate value for our shareholders.”