Building materials provider Travis Perkins has reported sliding sales, warning of "persisting" economic uncertainty. In its latest trading update, the firm said like-for-like revenue fell by 1.3% in the three months to September 30. For the year to the end of September, the group's like-for-like revenue dropped 0.9%.
Challenging market conditions
The construction sector is facing a challenging backdrop, with high interest rates and cost inflation weighing on new developments. The Northampton-based builders merchant said the industry remains subdued, especially in the new build residential sector, "as macroeconomic uncertainty persists".
The group added it was prioritising more profitable trade and reducing credit risk in the current environment, to help protect profits "despite the volume headwinds". The London-listed company's shares dropped nearly 3% at one stage on Thursday after the update, before settling around 1.5% lower later.
Toolstation performance
The group's brand Toolstation UK grew with a 3.6% increase in like-for-like revenue in the three months to September 30, in line with expectations and ahead of further store openings in 2027. However, Toolstation Benelux's like-for-like revenue over that period dropped 4.7%, with the group saying it continues to explore options to address the brand's "challenging" situation.
Travis Perkins chief executive Gavin Slark said: "In challenging market conditions we remain focused on what we can control. Our ongoing cost discipline and trading approach are protecting profitability whilst we continue to identify and implement further operational efficiencies. We look forward to providing more detail on our strategy and operational priorities at our preliminary results in March 2027."
Company overview
Travis Perkins counts 17,000 employees and operates across 1,500 locations across the UK. The group has five businesses – Travis Perkins general merchant, tools provider Toolstation, civil engineering, drainage and heavy building materials provider Keyline, heating and ventilation specialist BSS and drylining and insulation distributor CCF.
