Travis Perkins PLC on Tuesday said revenue fell in the first half, but said it is confident in its medium term outlook.
The Northampton, England-headquartered builders merchant reported revenue of £2.47 billion in the first half of 2023, down 2.5% from £2.54 billion the year prior. The company said the fall in revenue was due to weak market volumes in private domestic repairs, maintenance & improvements and new build housing.
The firm said pretax profit was £85.7 million, down 37% from £136.6 million a year ago. Profit was impacted by weaker trading in the merchant business, as well as the phasing of property profit in 2022.
Travis Perkins said basic earnings per share decreased to 28.6 pence per share, down 37% from 49.2p per share in 2022.
The company declared a dividend for the first half of 12.5p per share, unchanged from a year ago, citing its ‘robust balance sheet and confidence in the medium term outlook’ as the reason for the maintained dividend.
Looking ahead, the company said it expects full-year revenue to see a low single digit decline, with adjusted operating profit expected to be £240 million, compared with £295 million in 2022.
Chief Executive Nick Roberts said: ‘Market conditions have been challenging, which is reflected in both our first half performance and our outlook for the balance of the year. The group remains focused on striking the appropriate balance between seeking to protect shorter term profitability, delivering our strategic objectives and being well placed to benefit when market conditions improve.’
‘Whilst near-term trading is expected to remain difficult, we continue to work to position the group to benefit from the long term structural drivers in our end markets. The opportunities presented by the requirement to decarbonise the UK‘s built environment and address the shortage of both private and social housing remain significant and our unique portfolio of businesses, coupled with the development of innovative solutions for our customers, will enable the group to deliver long term growth and create value for shareholders.’
Travis Perkins shares rose 2.9% to 896.00 pence each on Tuesday morning in London.
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