Travis Perkins (LSE:TPK), the UK's largest distributor of building materials, reported group revenue of £2,258m for the six months to 30 June, down 1.8% on the prior year.
The decline was driven by weaker volumes in a subdued UK construction market and the comparative effect of last year's disposal of Staircraft, partially offset by building materials price inflation. Adjusted operating profit excluding property profits held flat at £62m, while statutory operating profit rose to £65m from £59m.
The Merchanting division saw like-for-like sales fall 1.2%, with TP General Merchant showing "encouraging early progress" in rebuilding profitability through better price pass-through, favourable sales mix and procurement gains.
Toolstation UK grew revenue 2.6% and lifted adjusted operating profit 4.8% to £22m, while Toolstation Benelux remained loss-making, with the group now in discussions with multiple parties over a possible divestment.
The balance sheet strengthened markedly, moving to net cash before leases of £55m from net debt of £103m a year earlier, with leverage falling to 1.9 times adjusted EBITDA, back within the group's 1.5 to 2.0 times target range for the first time since December 2022.
"We can be confident and optimistic about our future prospects", said chief executive Gavin Slark, who joined in January.
It expects second-half market conditions to be comparable to the first half, with similar trading performance anticipated.
Travis Perkins declared an interim dividend of 4.0p per share.
News Intelligence what this means for the company
Travis Perkins held adjusted operating profit flat at £62m in H1 despite a 1.8% revenue decline driven by weak UK construction volumes, but strengthened its balance sheet materially—swinging to net cash of £55m from net debt of £103m a year earlier and returning leverage to 1.9x EBITDA, back within its 1.5–2.0x target band for the first time since December 2022. The core story is stabilisation: profit held despite headwinds, the balance sheet repair is real, and early signs of turnaround progress in General Merchant are visible, but the group expects H2 to track H1—no acceleration signalled.
- Toolstation Benelux remains loss-making and is now in active divestment discussions; outcome and timing will affect group profitability and capital allocation.
- The group's guidance for H2 to match H1 implies no material improvement in UK construction market conditions; sustained flat profit would test investor patience for growth.
Leverage has returned to the 1.5–2.0x target range, removing a near-term refinancing risk and restoring financial flexibility. However, flat profit and flat-to-negative revenue growth in a core UK market, combined with a new CEO still in early tenure, leaves the investment case dependent on execution of the General Merchant turnaround and resolution of the Toolstation Benelux drag—neither yet proven at scale.
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