Travis Perkins plc has announced its half year results for the six months ended 30 June 2023.
Revenue of was down £2,472m, a drop of 2.5% and the adjusted operating profit of £112m is down 31% reflecting weak market volumes in private domestic RMI and new build housing. The full year adjusted operating profit is expected to be around £240m.
Merchanting saw resilient demand across commercial, industrial, infrastructure and public sector markets. However, performance was impacted by significant weakness in new build housing and private domestic repairs maintenance and improvement markets with revenue down and operating profit lower due to high operational gearing.
Toolstation delivered market share gains, with revenue up 9.0%. Operating profit was broadly in line with prior year.
Nick Roberts, Chief Executive Officer, commented: “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.
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.”
