Builders merchant says full-year performance will be in line with market expectations
Sales at Travis Perkins dropped 2.8% in the first quarter according to a trading update released today by the builders’ merchant.
The firm said volumes in its merchanting business in the first three months of the year had been impacted by weakness in the new build housing and repair, maintenance and improvement markets.
Demand in both markets has been hit in recent months by increased interest rates alongside stubbornly high material price inflation.
Sales in this part of the business were 4.7% down in the quarter, while sales price inflation remained high at 9% despite moderating from the second half of 2022.
Chief executive Nick Roberts said the “challenging” first quarter trading conditions had been anticipated but that the group’s “diverse exposure across the construction sector has enabled us to deliver a resilient performance”.
The business closed 19 branches and laid off 400 staff in the final quarter of last year in anticipation of the lower demand expected in 2023.
Roberts said he expected the business to deliver a full-year performance in line with market expectations.
Travis Perkins reported more resilient demand in the commercial, industrial and public sector markets, which represent just under half of its end market exposure.
>> Travis Perkins hit by £15m cost on axing 400 jobs at end of last year
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