Travis Perkins plc announces half year results for the six months to 30 June 2023

Travis Perkins plc states it remains “focused on balancing near-term trading performance with long-term strategic delivery in challenging market conditions” as revenue and profits fall.

The Group reported revenue of £2,472m – down (2.5)% – and adjusted operating profit of £112m down (31)% reflecting weak market volumes in private domestic RMI and new build housing. However, as previously guided, full year adjusted operating profit is expected to be around £240m.

According to the company statement, its Merchanting arm saw “resilient demand across commercial, industrial, infrastructure and public sector markets” however performance was said to have been impacted by “significant weakness in new build housing and private domestic RMI markets with revenue down (4.5)% overall and operating profit (23.5)% lower due to high operational gearing.”

Toolstation, meanwhile, was shown to have delivered market share gains with revenue up 9.0% “driven by network maturity benefits and focus on enhancing the trade customer proposition.” Operating profit was broadly in line with prior year reflecting investment in network and infrastructure to support future growth. For example, Toolstation UK’s new partly-automated 500,000 ft² distribution centre in Pineham, Northamptonshire is on track to open in Q3 and “will drive long term operational efficiencies” for the business.

The reporting also notes that “proactive cost actions and continued cost discipline ensured that overhead inflation was mitigated” whilst the Group is also said to have made “further progress on building a sustainable business with primary focus on decarbonisation.”

Chief Executive Officer Nick Roberts (main image, top) 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.”

He continued: “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.”

Click here for more information on the Travis Perkins plc half year results for the period ended 30th June 2023. 

Results summary