Travis Perkins Plc reports 4.7% fall in group revenues

Travis Perkins plc (LON:TPK), the UK’s largest distributor of building materials, has announced its full year results for the year to 31 December 2024

A challenging trading year

• Group revenue down (4.7)% driven by price deflation, continued decline in market volumes and underperformance in the Merchanting segment
• Significantly improved cost discipline but lower trading volumes and price deflation resulted in full year adjusted operating profit of £152m (2023: £198m)
• Operating profit of £2m (2023: £161m) reflects trading performance and adjusting items of £139m (of which around £20m are cash items) related to impairments in Staircraft and certain Merchanting branches and restructuring actions

Good progress in Toolstation

• Toolstation UK adjusted operating profit up 48% driven by robust sales growth, improved gross margins and supply chain and overhead efficiencies
• Toolstation France closed and Toolstation Benelux on accelerated path to profitability

Strong focus on cash generation and strengthening the balance sheet

• Net debt before leases reduced by £123m driven by £64m benefit from improved stock management and disciplined approach to capital expenditure
• £125m raised from investment grade US private placement notes in March 2025

(1) Alternative performance measures are used to describe the Group’s performance. Details of calculations can be found in the notes listed.

(2) For continuing businesses only. The Toolstation France business is treated as a discontinued operation.

On 10 March 2025, Pete Redfern resigned as Chief Executive Officer as a result of ill health. The Nominations Committee has commenced a search to identify the right long term successor to Pete as CEO. Geoff Drabble, Chair of Travis Perkins, will work with the management team during the interim period to progress actions already underway to improve performance.

Geoff Drabble, Chair, commented:

“Since joining the Board of Travis Perkins, I have been encouraged by the breadth and depth of our market footprint, the quality and commitment of our people and the strength of our relationships within the construction industry.

However, it is clear to the management team that there are a number of areas where the business needs to refocus and change the way it operates in order to better serve our customers and effectively support our suppliers. Several initial steps have been taken under Pete Redfern’s leadership to begin rebuilding trust and confidence, both internally and externally, with focused leadership roles restored in all our businesses and actions taken to re-engage and motivate our teams. These changes will make our businesses more responsive and bring them closer to our customers. Following Pete’s resignation, the priority is to ensure this work continues at pace, whilst the Nominations Committee of the Board identifies the right long-term successor.

Whilst uncertainty remains regarding the strength and timing of a recovery in UK construction activity, with more resources re-deployed into customer-facing roles, the Group is now better placed to benefit from returning demand. This will be supported by disciplined capital allocation, focused on upgrading and protecting our core competitive advantages, and a clear customer-focused strategy owned by the leaders of the business. I am confident that this approach will provide attractive returns for shareholders over the medium-term.”

Analyst Presentation

Management are hosting a results presentation at 8.30am. For details of the event please contact the Travis Perkins Investor Relations team as below. The presentation will also be available via a listen-only webcast – please register at the following link: https://travis-perkins-2024-fy-results.open-exchange.net