Travis Perkins lowers full year adjusted operating profit guidance
Travis Perkins has seen a decline in both revenue and like-for-like sales after trade was impacted by an ongoing slowdown in new build housing and domestic repairs, maintenance and investment activity.
In its third quarter ending 30 September, the group’s revenue and like-for-like sales both fell by 1.8%.
While revenue at Travis Perkins’ merchanting revenue dropped by 3.4%, revenue at its Toolstation business grew by 7.3%. The group said the merchanting decline followed a notable deterioration in market activity in September.
As a result of the quarter’s trading, Travis Perkins now expects adjusted operating profit to be in the range of £175 million to £195 million for its full year. This follows guidance issued in August for adjusted operating profit of £240 million.
Nick Roberts, Travis Perkins chief executive, said: “Market conditions remain challenging with continued weakness across new build housing and domestic RMI. Deflation on commodity products has also been greater than we had anticipated. In this environment, our priority has been to ensure that we deliver for our customers, both on service and pricing, as we seek to retain and grow our customer base for the medium to long term.
“This is the right approach, demonstrated by our ability to maintain volumes in this difficult market. However, this has impacted on our trading margins and is reflected in today’s revised guidance.”
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