Business
Travis Perkins: Half year results for the six...
Travis Perkins: Half year results for the six....
About this update from Travis Perkins Plc
[{"type":"text","content":"\n \n \n \n\n\t\n\t\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nTravis Perkins (TPK)\n\n\n\n\n\n\nTravis Perkins: Half year results for the six months ended 30 June 2023 01-Aug-2023 / 07:00 GMT/BST\n\n\nTravis Perkins plc, a leading partner to the construction industry, announces its half year results for the six months ended 30 June 2023\n\n \n\nFocused on balancing near-term trading performance with long-term strategic delivery in challenging market conditions\n\n \n\nFinancial Highlights\n\nRevenue of £2,472m down (2.5)% and adjusted operating profit of £112m down (31)% reflecting weak market volumes in private domestic RMI and new build housing\n Adjusted earnings per share of 30.5p down (41)% resulting from lower trading profit, phasing of property profits and the increase in the UK corporation tax rate\n Strong cash conversion at 105% driven by tight working capital management\n Lease-adjusted leverage (net debt / EBITDA) of 2.1x due to lower earnings and increased lease commitments. Net debt before leases reduced by £32m during the half.\n Interim dividend maintained at 12.5 pence per share reflecting the Group’s robust balance sheet and confidence in the medium term outlook\n As previously guided, full year adjusted operating profit expected to be around £240m\n \n\nOperational Highlights\n\nMerchanting saw resilient demand across commercial, industrial, infrastructure and public sector markets. However, performance was impacted by significant weakness in new build housing and private domestic RMI markets with revenue down (4.5)% overall and operating profit (23.5)% lower due to high operational gearing.\n Toolstation delivered market share gains, with revenue up 9.0%, driven by network maturity benefits and focus on enhancing the trade customer proposition. Operating profit was broadly in line with prior year reflecting investment in network and infrastructure to support future growth.\n Toolstation UK's new partly-automated 500,000 ft2 distribution centre in Pineham, Northamptonshire, which will drive long term operational efficiencies, is on track to open in Q3. The Group will be holding an investor event, focused on Toolstation UK, at Pineham on 28 September 2023.\n Proactive cost actions and continued cost discipline ensured that overhead inflation was mitigated\n Further progress on building a sustainab...