Profits tumble as weak market hits Travis Perkins

Profits at Northants-based builders merchant Travis Perkins have fallen by almost a third for the six months to June 30.

The company has blamed weak domestic and new build housing markets for the poor performance, which saw its surplus fall to £112m – down 31%.

Revenues also fell by 2.5% to £2.47bn.

Travis Perkins says its full year adjusted operating profit is expected to be around £240m.

Nick Roberts, chief executive officer, said: “Market conditions have been challenging, which is reflected in both our first half performance and our outlook for the balance of the year. The group remains focused on striking the appropriate balance between seeking to protect shorter term profitability, delivering our strategic objectives and being well placed to benefit when market conditions improve.

Whilst near-term trading is expected to remain difficult, we continue to work to position the group to benefit from the long term structural drivers in our end markets. The opportunities presented by the requirement to decarbonise the UK’s built environment and address the shortage of both private and social housing remain significant and our unique portfolio of businesses, coupled with the development of innovative solutions for our customers, will enable the Group to deliver long term growth and create value for shareholders.”