Travis Perkins cuts full-year profit outlook

In the six months to 30 June, adjusted operating profit fell 33% to £75m, while pre-tax profit was down to £15.6m from £85.7m. Revenue declined 4.4% from the same period a year earlier to £2.36bn.

The company said there had been a continuation of the trends from the second half of 2023, with weak demand across end markets and commodity price deflation.

The revenue fall was driven by the merchanting segment, it said, which was hit by continued subdued activity in the construction sector and significant price deflation, predominantly on commodity products.

Travis Perkins said Toolstation delivered a "solid" revenue performance, reflecting further market share gains as maturity benefits continue to come through.

The company said full-year adjusted operating profit is expected to be around £150m inclusive of £16m of losses related to Toolstation France. This is down from expectations of between £160m and £180m in March.

Chief executive Nick Roberts said: "Trading conditions have remained challenging through the first half of the year and we have continued to prioritise delivering for our customers whilst also recognising that a persistently lower volume environment means that we have to deliver a simpler, more efficient business. Whilst market conditions have impacted on our trading margin, we have made good progress on managing our overhead base and generating cash.

"With a new government quickly setting out its plans to reform planning to deliver more housing and infrastructure, and the expectation of an easing in macroeconomic conditions, the group is focused on ensuring that it is well placed to maximise the benefits from both a future recovery in demand and the long term requirement for the UK to expand and decarbonise its housing stock."