Builders’ merchant Travis Perkins PLC said it expects lower annual profit, in light of ongoing challenging market conditions.

The Northampton, England-headquartered company said it had delivered a ‘resilient’ performance in the first quarter of 2023, but it has not seen the anticipated easing of market conditions in the second quarter to date.

‘Volumes in both the new build housing and private domestic RMI markets continue to be impacted by higher interest rates and weaker consumer confidence driven by persistent, higher than anticipated consumer price inflation,’ Travis Perkins said.

‘By contrast, the group continues to see more resilient performance across its other end markets - namely commercial, industrial, infrastructure and public sector housing - and Toolstation continues to perform in line with expectations both in the UK and Europe.’

Assuming that the present conditions persist for the balance of the year, Management now expects to deliver a full year adjusted operating profit of around £240 million.

In 2022, Travis Perkins reported adjusted operating profit of £295 million. Therefore, the company is expecting a 19% annual fall in profit.

Travis Perkins will report half year results on August 1.

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