Builders merchant now expects full-year profit to be no higher than £195m
Travis Perkins has again downgraded its forecasted profit as commodity product deflation and challenging market conditions hit its margins.
In June, the builders merchant warned operating profit would be lower than expected – around £240m – due to weak demand and higher interest rates.
In its third quarter trading update, issued this morning, the firm revealed it was now expecting its full-year profit to be between £175m and £195m with the slowdown in housing and RMI work being blamed.
Chief executive Nick Roberts said market conditions remained “challenging” with deflation on commodity products “greater than anticipated”.
“This has impacted on our trading margins and is reflected in today’s revised guidance,” he said.
In 2022, adjusted operating profit was £295m.
Group revenue declined 1.8% in the three months to 30 September, while like-for-like sales were down by the same amount.