Builders merchant and rival SIG both say demand has not picked up in interim results statements this morning
Travis Perkins said sales fell in the first half and admitted it did not know when a recovery in construction would begin.
The builders merchant said revenue in the six months to June was down 2% to £2.3bn with revenue from its merchanting business down 3% to £1.9bn while adjusted operating profit at the division down 31% to £63m. Group adjusted operating profit fell 24% to £63m although pre-tax profit was up 39% to £37m.
In a note accompanying the accounts, the firm said: “Whilst the Group continues to make progress on actions to stabilise performance, end market demand remains subdued and the timing of a recovery in the UK construction sector is uncertain.”
Julie Palmer. partner at restructuring specialist Begbies Traynor, said: “Travis Perkins must be hoping today’s results mark a nadir, with the building materials giant continuing to suffer as the much-anticipated recovery in the construction industry fails to arrive.”
Earlier this year, Travis Perkins poached Gavin Slark from rival SIG to be its new chief executive.
Slark will take up his new role at the start of 2026 and replaces previous incumbent Pete Redfern who stepped down in March after just six months in the role because of ill-health.
Meanwhile, in its interim results SIG said revenue remained flat at £1.3bn for the six months to June. Pre-tax losses widened from £11m to £33m although the firm said restructuring initiatives meant underlying operating profit was up a third to £15.4m.
But the firm also warned: “Having seen no notable pick-up in demand during the period, the Board remains cautious as to the prospect of meaningful market improvement during the second half.”
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