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Travis Perkins PLC on Tuesday backed full-year guidance as it reported improved revenue trends in its Merchanting business. In response, shares in the Northampton-based building materials company shot up 8.5% to 580.50 pence each in London on Tuesday. Travis Perkins said pretax profit rose to £37.1 million in the six months to June 30 from £26.6 million a year prior. Revenue eased 2.1% to £2.30 billion from £2.35 billion mainly reflecting a ‘difficult’ first quarter, with a continued trend of market share loss and revenue decline in Merchanting. ‘The decline in revenue was driven by the Merchanting segment with activity across the majority of end markets remaining subdued. Toolstation delivered a robust revenue performance with further market share gains as maturity benefits continue to come through,’ Travis Perkins said in a statement. However, Travis Perkins said actions to drive volume in Merchanting are taking effect, with Merchanting like-for-like sales down 1.0% in the second quarter compared to down 3.2% in the first quarter, with the market share decline arrested. Chair Geoff Drabble expects Travis Perkins to ‘build on this momentum in the second half as we deploy further system enhancements.’ ‘The strong performance of Toolstation UK, which operates in similar markets to the group’s other businesses, demonstrates our potential without internal distractions,’ he pointed out. Toolstation UK delivered further progress, the firm said, with operating profit increasing 50% to £21 million in the half year. Looking ahead, Drabble said: ‘Whilst the market outlook for the second half remains uncertain, the board anticipates that the group will deliver a full year result broadly in line with current market expectations’. Company compiled consensus shows full year adjusted operating profit with a range of £135 million to £148 million and a mean of £141 million. The firm paid a half year dividend of 4.5 pence per share, down from 5.5p a year ago. But it reported progress in reducing debt before leases which fell to £103 million from £191 million a year ago, driven by substantial working capital inflow and proceeds from sale of Staircraft. Accordingly, leverage has reduced to 2.3 times, Travis Perkins said. The company remains ‘focused’ on returning leverage to its target range of 1.5x to 2.0x ‘as soon as is practically possible.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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