Travis Perkins Reports Decline in Half-Year Results Amid Challenging Market Conditions

Travis Perkins plc has released its half-year results for the six months ended 30 June 2024, highlighting a challenging trading environment with revenue down 4.4% to £2,362m. Adjusted operating profit fell 33% to £75m, impacted by lower volumes and commodity price deflation in Merchanting. Meanwhile, Toolstation UK experienced operating margin growth of 130bps. The company also announced the forthcoming exit from Toolstation France by year-end.

The company has undertaken restructuring actions, reducing overheads by £19m. New CEO Pete Redfern and Chair designate Geoff Drabble will join the firm in the coming months to steer its business transformation. A new Oracle Finance ERP system was implemented in July to enhance financial controls and operational efficiency.

Travis Perkins maintains a focus on meeting customer needs and enhancing cash generation. Despite the tough conditions, management anticipates a full-year adjusted operating profit of around £150m, including £16m of losses from Toolstation France. An interim dividend of 5.5 pence per share has been declared.