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Highlights:

  • Group revenue down 4.7% due to price deflation and weaker market demand.
  • Toolstation UK sees 48% rise in adjusted operating profit, while Toolstation France is closed.
  • Net debt reduced by £123m, driven by improved stock management and capital discipline.

Travis Perkins plc (LSE:TPK), the UK’s leading supplier of building materials, has published its full-year results for the year ending December 31, 2024. The company has faced significant challenges during the year, primarily driven by price deflation and a decline in market volumes. These challenges, combined with underperformance in its Merchanting segment, have contributed to a tough financial year for the business.

For the year, the group reported a 4.7% decline in revenue, largely attributed to the weakening demand in the construction market and lower pricing in some of its product lines. As a result, the company recorded a reduced adjusted operating profit of £152 million for 2024, down from £198 million in the previous year.

The reported operating profit took a significant hit, falling to £2 million (2023: £161 million). The drop was heavily influenced by £139 million in adjusting items, including impairments in the Staircraft division, certain Merchanting branches, and restructuring actions. Around £20 million of these adjustments were cash-related, highlighting the scale of the challenges faced by the business.

Toolstation Shows Positive Performance Despite Setbacks

While Travis Perkins overall faced a challenging year, Toolstation UK proved to be a bright spot in the company's portfolio. The division saw a 48% increase in adjusted operating profit.

However, not all of Toolstation’s international ventures performed equally well. Toolstation France was closed during the year, while Toolstation Benelux was placed on an accelerated path to profitability, a decision aimed at improving the financial performance of the business in those regions.

Improved Cash Generation

One of the key focuses for Travis Perkins during the year was cash generation and balance sheet improvement. Despite the overall challenges, the company was able to reduce net debt before leases by £123 million. This was largely driven by improved stock management, which led to a £64 million benefit for the business, along with a disciplined approach to capital expenditure.

Travis Perkins raised £125 million through investment-grade US private placement notes in March 2025. This funding provides additional stability and support for the company's operations going forward.

Looking Ahead

Looking ahead to 2025, the company has outlined plans to optimise its Merchanting division and maintain its strong focus on growth in the Toolstation segment. The company will continue to implement restructuring measures to improve operational efficiency and adjust to the current market conditions.