TRAILBLAZERS Travis Perkins
TRAVIS PERKINS THE NUMBERS
2020 Turnover £m Gross profit £m
Operating profit £k Net profit £k
THE RATIOS 2020
Stockturn 5.2 Gross margin %
Operating margin % Net margin % Sales/head £k Profit/head £
Return on capital % BMJ INDEX
20.1 0.4 nil
210 922 nil
2021 4.5
28.5 7.6 6.7
244
18,505 6.9
2022 5.0
27.7 5.7 4.9
250
14,271 5.9
252
The full-year results for the Travis Perkins Group were issued too late to be included in the calculations for Trailblazers and the League Tables, so these are based on the group’s 2022 results.
For the year ended December 31 2023, Travis Perkins posted a slight drop in revenue and a slump in operating profits, a financial period described as “a challenging year in weak market conditions”.
Overall group sales were down 2.7% to £4.86bn. Once adjustments had been made for exceptional items such as the £60m put aside to cover redundancies, the 39 stand-alone Benchmarx branch closures, and adjustments to do with Toolstation France, the adjusted operating profits were £180m, a 39% drop on the previous year. The Merchanting segment had a challenging year with revenue down by 4.4% at £4,036m, and adjusted operating profit reduced by 32.5% to £212m. The private domestic new-build market, still suffering from the economic turmoil of autumn 2022 significantly impacted the group’s Keyline, CCF and Staircraft businesses, which work with national and regional housebuilders.
Toolstation in the UK, on the other hand, saw sales grow by 6.6% to £826m; the aim is to continue this revenue growth to £1bn by 2027. In Europe though, the decision has been made to pull out of France; discussions are
ongoing around the business in Belgium and The Netherlands. Nick Roberts, chief executive cfficer, said: “Ongoing economic challenges have significantly impacted our trading performance, driven by weakness in the new build housing and domestic RMI sectors, and compounded by deflationary pressures on commodity products. Faced with these challenges, we have invested to protect and build our leading market positions.
“While the timing of recovery in our end markets is uncertain, the long-term growth drivers of our industry remain robust. The proactive steps we are taking to rebuild profitability and strengthen our balance sheet will create a more resilient business and, together with our strong customer relationships and differentiated offer, will see the Group well positioned to emerge stronger when markets recover.” The group believes that a recovery in the UK construction sector is unlikely to gather any real momentum before the UK general election, with customers, large and small, inevitably waiting to see if there is a post-election government stimulus package for the sector and also seeking clarity on the future direction of interest rates.
In light of the continued
uncertainty, the Group has pushed ahead with actions to reduce costs by around £35m in 2024, primarily from a reduction in central and regional headcount and the closure of the Toolstation
April 2024 A supplement to builders merchants journal 37
6,157.5 1,236.4 27,000
(20,300) Staff 29,288 2021
4,586.7 1,308.8 348,500 305,600 18,833
2022
4,994.8 1,384.7
284,800 245,000 19,956
% CHANGE 2021 (26) 6
1191 n/a (36)
% CHANGE 2021 (14) 42
1633 n/a 16
1907 n/a
2022 9 6
(18) (20) 6
2022 10
(3)
(25) (26) 3
(23) (15)
Bridgwater distribution centre. This also includes the closure of 39 standalone Benchmarx branches, to focus more on the profitability of the remaining standalone branches and intergrating the Benchmarx offer into General Merchant branches. On March 27th, the Travis Perkins Group announced that CEO Nick Roberts would leave the business after five years. Jasmine Whitbread, chair, thanked Roberts for his “dedication and contribution” to the business over the five years. “While there has been good progress made in modernising the business, the Board recognises the under performance of the business over recent reporting periods, in the context of continued economic challenges and end market weakness,” she said.
Roberts said: “Travis Perkins is a great company with a talented team and I have been privileged to serve as CEO for the last five years. I am proud of the progress we have made in modernising the company.
TRAVIS PERKINS
Ryehill House, Rye Hill Close,
Lodge Farm Industrial Estate, Northampton NN5 7UA
www.travisperkins.co.uk Tel:01604 752424
Brands: Travis Perkins Benchmarx Toolstation CCF Keyline BSS Staircraft TF Solutions:
Branches: Travis Perkins 622 BSS: 69 CCF: 36 Keyline: 42
Benchmarx Kitchens & Joinery Showrooms 127 (39 closed) Toolstation: 570 (UK) TF Solutions: 15
Employees: 20,000 (group) Chair: Jasmine Whitbread CEO: Nick Roberts (until successor appointed) CFO: Duncan Cooper Chief Information and Technology Officer: Phil Tenney Chief HR Officer: Emma Rose Managing Director Travis Perkins James Mackemzie Managing Director Toolstation Angela Rushforth Managing Director Keyline: Dean PInner
Managing Director CCF: Catherine Gibson
Managing Director BSS: Dave Castle Members of: BMF
TRAVIS PERKINS BUILDERS MERCHANTS: A-Z
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