Travis Perkins warns on profits

Travis Perkins warned on profits on Friday, after higher interest rates and weaker consumer confidence weighed heavily on house building.

The builders' merchant said it had "not seen the anticipated easing of market conditions in the second quarter to date".

Commercial, industrial, infrastructure and public sector housing had proved more resilient, while retail brand Toolstation continued to trade in line with expectations in the UK and Europe.

But volumes in new build housing and private repair and maintenance markets had, Travis Perkins said, been hit by "higher interest rates and weaker consumer confidence, driven by persistent, higher than anticipate consumer price inflation".

As a result, the FTSE 250 group has cut its full-year guidance and now expects adjusted operating profits to come in around £240m. That compares to a previous forecast, last reiterated in April, for full-year profits of £272m.

In 2022, adjusted operating profits were £295m.

Travis Perkins noted: "The group is driving the trading strategy to effectively navigate the near-term market conditions, alongside its ongoing focus on delivering operational efficiencies in the business.

"Carefully targeted investment continues to ensure that the group remains well-placed to benefit from a recovery and the long-term structural drivers in its end markets, including the long-term undersupply of new housing."