Travis Perkins slumps as Toolstation swings to loss

In the six months to 30 June, group revenues rose 10.3% to £2.5bn, while adjusted operating profit dipped to £163m from £164m in the same period a year earlier.

Total revenue in the merchanting division grew 13.3% to £2.2bn, with adjusted operating profit up 9% at £170m. In Toolstation, however, revenue fell 4.6% to £376m and the business slumped to an £8m loss from a profit of £10m as DIY sales declined following the pandemic.

Chief executive Nick Roberts said: "The group has delivered a good performance during the first half of the year, once again demonstrating the capability to navigate challenging market conditions.

"Our Merchant businesses continue to perform well, taking market share and extending their market leading positions by developing the customer proposition to meet changing requirements within their respective markets.

"Toolstation’s customer base returned to its core trade customer in the period following exceptional trading during the pandemic. We have made great progress in enhancing the trade offer in Toolstation and customers have responded positively. We remain as confident as ever in the long-term growth potential of the business and in our UK investment programme, whilst also increasing investment in Toolstation Europe to take advantage of the opportunities we see in those markets."

At 0900 BST, the shares were down 7.8% at 949.60p.

Victoria Scholar, head of investment at Interactive Investor, said: "On first glance, Travis Perkins’ top and bottom-line performances appear to be relatively resilient. However, on closer inspection, the home improvement company has been struggling with reduced demand for DIY products after Covid, which has negatively impacted revenue at Toolstation, which slumped by nearly 5%, sending shares in Travis Perkins sharply lower.

"The stock has had a tough year, down by more than 40% since the January highs, but this has been broadly in line with the overall sector."