Travis Perkins has reported a decline in sales in the first half of the year and admitted it is unclear when the construction market will recover.
The building materials distributor said revenue for the six months to June fell by 2% to £2.3 billion, while revenue in its merchanting division dropped by 3% to £1.9 billion. Adjusted operating profit in that division fell by 31% to £63 million. Group adjusted operating profit declined by 24%, but pre-tax profit rose by 39% to £37 million.
In a note to the report, the company stated:
“While the group continues to make progress in stabilisation measures, end-market demand remains subdued and the timing of a recovery in the UK construction sector remains uncertain.”
Julie Palmer, a partner at restructuring specialists Begbies Traynor, commented:
“Travis Perkins is likely hoping that these results mark the bottom of the downturn, as the company continues to suffer from the delayed recovery of the construction industry.”
Earlier this year, Travis Perkins appointed Gavin Slark from rival firm SIG as its new CEO. Slark will take up the role in early 2026, replacing Pete Redfern, who stepped down in March after just six months in the role due to health reasons.
Meanwhile, SIG reported in its interim results that revenue remained flat at £1.3 billion. However, pre-tax losses widened from £11 million to £33 million. Still, the company noted that restructuring initiatives helped increase underlying operating profit by a third to £15.4 million.
The company also warned:
“With no clear signs of a pickup in demand, the board remains cautious about the prospects for a meaningful market improvement in the second half of the year.”