Travis Perkins has reported a resilient first-half performance after holding underlying profits steady despite weaker demand across the construction sector.<\/p>\n
The Northampton-headquartered builders’ merchant posted revenue of \u00a32.26bn for the six months to 30 June, down 1.8% on the same period last year, as lower sales volumes and the disposal of Staircraft were partly offset by building materials price inflation.<\/p>\n
Adjusted operating profit, excluding property profits, remained unchanged at \u00a362m, while statutory operating profit increased from \u00a359m to \u00a365m. Profit after tax also rose to \u00a330m from \u00a326m.<\/p>\n
The group said it had made early progress in improving margins within its General Merchant business through better pricing, procurement gains and a stronger sales mix.<\/p>\n
Toolstation UK continued to grow both revenue and operating margin during the period, although trading in the Benelux remained challenging. Across the specialist businesses, weaker demand from the housebuilding sector was partly balanced by improving infrastructure activity.<\/p>\n
Travis Perkins also strengthened its balance sheet during the half year, moving from net debt of \u00a3103m a year ago to a net cash position of \u00a355m before leases. Net debt to adjusted EBITDA reduced to 1.9 times, returning to the group’s target range.<\/p>\n
The company declared an interim dividend of 4p per share.<\/p>\n
Gavin Slark, Chief executive said: “I have enjoyed my first half since joining as CEO in January. I have developed a clear understanding of our many strengths, but also where we need to improve if we are to restore the Group’s financial performance and reach our potential.<\/p>\n
“We have built on the operational progress made last year, with a new senior leadership team in place and a clear set of priorities. This stability and focus is serving us well as we implement further change. We have made encouraging early progress in rebuilding profitability in the General Merchant and Toolstation UK continues to perform in line with our expectations. We continue to place the customer back at the heart of the business, recognising the value of strong relationships and the importance of providing great service.<\/p>\n
“Our financial position continues to strengthen and is providing us with the flexibility to invest where we see the best opportunities ahead of any market recovery. I would like to thank all our colleagues for their dedication and commitment during the first half. We can be confident and optimistic about our future prospects.”<\/p>\n","protected":false},"excerpt":{"rendered":"
Strong cash generation and improving margins offset softer demand<\/p>\n","protected":false},"author":266702,"featured_media":2079420,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53262],"coauthors":[127717],"class_list":["post-2113477","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","tag-featured-story","tag-northamptonshire"],"yoast_head":"\n