24 October 2024
Dissemination of a Regulatory Announcement that contains
inside information according to REGULATION (EU) No 596/2014
(MAR)
Travis Perkins plc
Q3 trading update for the three
months to 30 September 2024
-
Group revenue down (5.7)%, driven
by the Merchanting segment
-
Robust performance from
Toolstation, with revenue +2.9% in the UK and Benelux like-for-like
sales +9.6%
-
Loss-making operations in
Toolstation France have ceased trading and remain on track for full
closure by the end of FY24
-
FY24 adjusted operating profit
expected to be around £135m
Pete Redfern, Chief Executive of Travis Perkins plc
commented:
“My first few weeks at
Travis Perkins Group have reaffirmed that this is a business with
many strengths – the quality of our nationwide branch network,
strong customer and supplier relationships and, above all, an
experienced team of branch managers and commercial leaders within
the business.
Travis Perkins Group plays a
critical role in the construction industry. Connecting our
customers with the products and tools they need and removing the
friction from fragmented and complex supply chains will be core to
our strategy.
However, it is clear that the Group
has allowed itself to become distracted and overly internally
focused which has led to the underperformance in recent
periods.
We now need to get back to a focus
on operational execution – delivering great products and great
customer service and better leveraging our reach and
scale.
Over the last nine months the team
has made good progress on implementing cost discipline, improving
working capital management and exiting Toolstation France. In
addition to supporting these ongoing actions, my immediate
priorities are driving and incentivising branch-led performance and
motivation, identifying further ways to make the business run more
efficiently and ensuring that we turn and face the anticipated
recovery in the UK construction market.
During this important period, I
will combine the roles of Group Chief Executive and Managing
Director of the Travis Perkins General Merchant business. This will
allow me to shorten reporting lines and develop our new strategy,
working closely with the operational leaders of this business as
well as the Group Leadership Team. I am confident that together we
can bring significant improvements in performance and the execution
of change.
I look forward to working with
Geoff, Duncan and the wider Board over the coming months to shape
the future of the business. We will provide a further update with
the full year results.”
Business Performance
Group revenue declined by (5.7)% in the quarter with
like-for-like revenue down by (6.8)%.
In the Merchanting segment revenue was (8.2)% lower on a
like-for-like basis, driven by the General Merchant which has seen
a loss of market share over the summer. Both volume and margin in
the General Merchant have underperformed expectations with volume
continuing to decline despite recent changes to optimise pricing.
More widely the market remains mixed, with ongoing competitive
intensity in some of the Group’s Specialist Merchanting businesses
but early signs of returning confidence in others.
Toolstation delivered a robust performance with growth of
2.9% in the quarter in the UK and Benelux like-for-like sales up
9.6%. Toolstation France remains on track for full closure by the
end of FY24, with 8 branches being sold to Quincaillerie Angles as
a going concern and the remaining 43 branches, alongside the
transactional website, having now ceased trading.
Outlook
Given the shortfall in the Merchanting segment, the Board now
expects FY24 adjusted operating profit to be around
£135m.
Overall, the Group's key end markets are stabilising with
some very early signs of recovery. Management expects to see
positive growth in these underlying markets over the next twelve
months, but that this growth will be slow and non-linear at the
outset, with the benefit to financial performance starting to be
realised in the second half of 2025.
|
Q3 2024
|
Merchanting
|
Toolstation
|
Group
|
|
Price and mix
|
(0.8)%
|
0.6%
|
(0.6)%
|
|
Like-for-like volume
|
(7.4)%
|
0.4%
|
(6.2)%
|
|
Like-for-like revenue growth /
(decline)
|
(8.2)%
|
1.0%
|
(6.8)%
|
|
Network changes
|
(0.6)%
|
0.7%
|
(0.3)%
|
|
Trading days impact
|
1.7%
|
0.0%
|
1.4%
|
|
Total revenue growth /
(decline)
|
(7.1)%
|
1.7%
|
(5.7)%
|
|
YTD 2024
|
Merchanting
|
Toolstation
|
Group
|
|
Price and mix
|
(2.7)%
|
1.6%
|
(2.0)%
|
|
Like-for-like volume
|
(4.2)%
|
(0.8)%
|
(3.6)%
|
|
Like-for-like revenue growth /
(decline)
|
(6.9)%
|
0.8%
|
(5.6)%
|
|
Network changes
|
(0.5)%
|
0.9%
|
(0.3)%
|
|
Trading days impact
|
1.1%
|
0.4%
|
1.0%
|
|
Total revenue growth /
(decline)
|
(6.3)%
|
2.1%
|
(4.9)%
|
Note - Toolstation segment numbers
include Toolstation France
Pete Redfern and Chief Financial Officer Duncan Cooper will
be hosting a call for sell-side analysts and institutional
investors at 8.30am BST today.
Details of how to join the call are below. Participants are
requested to join 10 minutes before the scheduled start time with
pre-registration encouraged.
Advance
registration
https://www.netroadshow.com/events/login?show=890cbe67&confId=71746
Alternatively use the
numbers below:
Operator Assisted Dial-In:
United Kingdom (Local): +44 20 3936 2999
United Kingdom (Toll-Free): +44 800 358 1035
Access Code: 506120
Enquiries:
|
Travis Perkins
|
|
FGS Global
|
|
Matt Worster
|
|
Faeth Birch / Jenny Davey / James Gray
|
|
+44 (0) 7990 088548
|
|
+44 (0) 207 251 3801
|
|
matt.worster@travisperkins.co.uk
|
|
TravisPerkins@fgsglobal.com
|