UK’s largest builders’ merchant to save £35m on restructure
Travis Perkins has made cuts to its headcount following a fall in profit in 2023.
The builders’ merchant made an operating profit of £180m in the 2023 financial year, down from £295m in 2022 and £353m the year before.
It said it had started work in the fourth quarter of last year on a “reduction in central and regional headcount alongside efficiencies realised within the Group’s supply chain”.
The firm said in its latest trading update that the move would save around £35m, and result in a one-off restructuring charge of around £15m in the 2023 financial year.
The UK’s largest builders’ merchant employed over 20,000 people in 2022, with more than 1,400 branches and sites.
But the building materials market has been hit by a series of rolling challenges in recent years, including high inflation caused by the fallout of the covid pandemic and Russia’s invasion of Ukraine.
“Over recent years the Group’s strategy has focused on streamlining operations, modernising technology and infrastructure and establishing the drivers of future growth,” the update said.
“Given that market conditions are anticipated to remain subdued into FY24, management has accelerated plans to continue the transformation of the business.”
The update said the restructure represents the “first steps” in a programme of planned changes to the group’s operating model, which will focus on “simplifying how its businesses interact with each other, reviewing the impact of loss-making activities and maximising the benefit of the Group’s collective scale.”
“Together these changes will deliver further operational efficiencies, enhance cash generation and strengthen financial resilience over the medium term,” the firm added.
Travis Perkins posted revenue of nearly £5bn in its latest full accounts to 31 December 2022, up from around £4.6bn in 2021. Its full year results will be published in early March.
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