AUS
NZ
UK
CA
USA
IND
_08_02_2024_17_23_59_992940.jpg)
Travis Perkins plc (LSE:TPK) has released its half-year results for the six months ending 30 June 2024, highlighting good progress on business improvement actions despite persistently challenging market conditions.
Revenue and Profit Decline
Travis Perkins reported a 4.4% decline in revenue compared to the prior year, primarily due to weak demand across the Group’s end markets and commodity price deflation. These factors also impacted the Merchanting segment, leading to a decrease in adjusted operating profit to £75 million, down from £112 million in 2023.
Statutory Operating Profit and Adjusting Items
The company recognized adjusting items totaling £32 million in the first half of the year, of which £10 million were cash items. As a result, statutory operating profit was £38 million, compared to £107 million in the previous year. The full-year adjusted operating profit is expected to be around £150 million, inclusive of £(16) million of losses related to Toolstation France.
Segment Performance
Despite lower volumes and price deflation impacting gross margins, Travis Perkins maintained its market share and pricing discipline in the Merchanting segment. The company remains focused on meeting customer needs in tough trading conditions.
Toolstation UK continued to gain market share, with operating margin increasing by 130 basis points. This segment's performance highlights the company's ability to adapt and thrive even in challenging market environments.
Dividend and Leadership Changes
The Board declared an interim dividend of 5.5 pence per share, a decrease from 12.5 pence per share in 2023, reflecting the challenging market conditions and the company's cautious approach to capital allocation.
New Leadership
Travis Perkins announced the appointment of Pete Redfern as the new CEO and Geoff Drabble as the new Chair designate. Both leaders will join the Group in September and October, respectively, bringing extensive construction sector experience and listed company expertise.
Outlook
Travis Perkins remains committed to maintaining its market position and pricing discipline amidst challenging trading conditions. The company continues to focus on business improvement actions and meeting customer needs.
