Business
Travis Perkins plc : half year results for th...
Travis Perkins plc : half year results for th....
About this update from Travis Perkins Plc
[{"type":"text","content":"\n \n \n \n\n\t\n\n\n\n\n\n\n\n\n\n\n\nTravis Perkins (TPK)\n\n\n\n\n\n\nTravis Perkins plc : half year results for the six months ended 30 June 2024 06-Aug-2024 / 07:00 GMT/BST\n\n\n6 August 2024\n\n \n\nDissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR)\n\n \n\nTravis Perkins plc - half year results for the six months ended 30 June 2024\n\n \n\nGood progress on business improvement actions amidst persistently challenging market conditions\n\nMaintaining market position in a challenging trading environment\n\nContinuation of trends from H2 2023 with weak demand across the Group’s end markets and commodity price deflation leading to revenue (4.4)% lower than prior year\n Lower volumes and the impact of price deflation on Merchanting gross margin resulted in adjusted operating profit of £75m (2023: £112m)\n Maintained market share and pricing discipline in Merchanting as focus remains on meeting customers’ needs in tough trading conditions\n Continued market share gains in Toolstation UK with operating margin up 130bps\n Adjusting items of £32m recognised in the first half (of which £10m is cash) resulted in statutory operating profit of £38m (2023: £107m)\n Full year adjusted operating profit expected to be around £150m inclusive of £(16)m of losses related to Toolstation France \n Interim dividend of 5.5 pence per share (2023: 12.5 pence per share)\nGood progress on business improvement actions\n\nA simpler, more efficient business: restructuring actions and tighter controls have reduced overheads by £19m versus prior year with cost inflation absorbed. The Group is leveraging scale to deliver future savings in distribution and procurement. \n Addressing loss-making activities: on track to exit Toolstation France by the end of the year; strategic review of Toolstation Benelux complete with actions in place to deliver break-even performance in 2025\n Technology enablement: Oracle Finance ERP system went live 1 July 2024 \nEnhanced cash generation: greater financial and operational discipline, including lower capital expenditure, resulted in a cash inflow in H1 of £82m and a reduction of £81m in net debt before leases. Working capital inflow of £54m driven largely by stock reduction; targeting further reduction in H2\nNew leadership to continue ...