Profits slump at Travis Perkins
Northamptonshire builders merchant Travis Perkins has posted a decidedly mixed set of results after “difficult decisions” related to the macroeconomic climate and a restructuring charge impacted its bottom line.
While the company experienced revenue growth of 8.9% last year, its adjusted operating profits slumped from £353m to £295m due to “lower year-on-year property profits and a £15m charge related to restructuring activities in Q4.”
The AIM listed firm’s profits after tax sank from £241m to £192m – a drop of 20.3%.
Looking ahead, the company said it was “planning for a decline in overall market volumes in the mid to high single digit range in 2023.”
CEO Nick Roberts described the firm’s performance as “resilient.”
Despite the troubling decline in profits, divisions such as Travis Perkins General Merchant performed solidly last year, the company said, while its specialist distributors BSS, Keyline and CC continued to deliver.
Roberts said: “The Group delivered a resilient trading performance in 2022 which is testament to the capability of our colleagues and the strength of our market leading propositions. I would like to thank our teams for their hard work throughout the year and their flexibility to meet customer needs amidst rapidly changing market dynamics.”
He added: “In the second half of the year we made some difficult decisions in response to the weaker trading environment and we continue to be watchful of market trends, working closely with our customers and suppliers to stay on the front foot.”
The company axed 400 jobs and closed nineteen General Merchant and Benchmarx branches in a bid to cut costs last year– actions it expects to deliver around £25m of savings.