Travis Perkins plc’s full year results reveal “a resilient trading performance in rapidly changing market conditions.”
Announced on 28th February, the Group’s Financial Highlights included “robust revenue growth of 8.9% with elevated levels of materials cost inflation diligently managed” alongside an adjusted operating profit of £295m, impacted principally by lower year-on-year property profits and a £15m charge related to restructuring activities in Q4. Proactive cost actions, meanwhile, are said to deliver benefits of around £25m in 2023.
The business also reported “solid performance” in its Travis Perkins General Merchant division, driven by a “focus on the enhancement of digital capability and expansion of value-added services primarily across Hire, Benchmarx kitchens and Managed Services.” Continued strong performance was also seen from the Group’s specialist distributors – BSS, Keyline and CCF whilst Staircraft is now integrated and enhancing the Group’s housebuilder proposition.
In addition, Toolstation “returned to good growth in H2 after tough prior year comparatives in H1” with significant investment in expanding its infrastructure across both the UK and Europe. Finally, positive progress was reported towards the Group’s sustainability targets, notably a 34% reduction in Scope 1 & 2 carbon emissions during the year.
Overall, Group revenue increased to £4,995m in 2022 from £4,587m in 2021 for continuing businesses only (its Wickes Retail and Plumbing & Heating segments are treated as discontinued operations, following their sale last year).
Chief Executive Officer Nick Roberts said: “The Group delivered a resilient trading performance in 2022 which is testament to the capability of our colleagues and the strength of our market leading propositions. I would like to thank our teams for their hard work throughout the year and their flexibility to meet customer needs amidst rapidly changing market dynamics.
“In the second half of the year we made some difficult decisions in response to the weaker trading environment and we continue to be watchful of market trends, working closely with our customers and suppliers to stay on the front foot. Investment continues in our strategic growth programmes including selectively exploring new destination branches for the Travis Perkins General Merchant, rolling out Toolstation in both the UK and Europe and investing in growing our value-added services, notably Hire, Benchmarx kitchens and our Staircraft business, always being mindful to flex the pace of the programme to reflect market conditions.”
He continued: “Whilst it is early in the year and macroeconomic uncertainty remains, the combination of our diverse end market exposure, appropriate cost actions and further market share gains driven by continued strategy execution, will enable the Group to deliver another resilient trading performance in the year ahead.
“As a market-leading distributor of building materials products, we continue to benefit from long-term strategic growth drivers in our markets including new environmental and safety legislation and commitments from both public and private sector customers to deliver against net zero targets. We are committed to being at the forefront of both decarbonising the construction industry alongside developing the next generation of talent to create value for all of our stakeholders.”
For more details on the Travis Perkins plc results, click the following link: www.travisperkinsplc.co.uk
