# Travis Perkins Plc H1 revenue falls 2.1% as merchanting stabilises

- Link: https://www.directorstalkinterviews.com/travis-perkins-plc-h1-revenue-falls-2-1-as-merchanting-stabilises/4121210770
- Published: 2025-08-05T07:29:00+01:00
- Author: Amilia Stone

**Travis Perkins plc** (LON:TPK), the UK’s largest distributor of building materials,
has announced its half year results for the 6 months to 30 June 2025

**Focus on stabilising business performance**

●    Group revenue declined by (2.1)% driven primarily by operational challenges
in the early part of the year

●    Actions to drive volume in Merchanting taking effect, with Merchanting like-
for-like sales (1.0)% in Q2 (versus (3.2)% in Q1) and market share decline arrested

●    Proactive management of overheads to mitigate cost inflation and increased 
employer national insurance contributions

●    Further progress in Toolstation UK with operating profit increasing 50% to 
£21m

●    Overall, lower volumes in Merchanting resulted in adjusted operating profit
of £63m (2024: £83m)

●    Statutory operating profit of £59m (2024: £48m)

●    The Group expects to deliver a full year adjusted operating profit (including
£8m of property profits) broadly in line with current market expectations*

●    New leadership structures implemented and highly experienced CEO, Gavin Slark,
to join the Group on 1 Jan 2026

**Continued strong progress on cash generation**

●    Net debt before leases reduced by a further £88m to £103m driven by substantial
working capital inflow and proceeds from sale of Staircraft

●    Net debt / adjusted EBITDA reduced by 0.4x to 2.3x through working capital 
improvements, discipline on capital investment and exit of Toolstation France

| £m _(unless otherwise stated)_ | _Note_ | **H1 2025** | H1 2024 (re-presented²) | _Change_ | 
| Revenue | _2_ | **2,300** | 2,349 | _(2.1)%_ | 
| Adjusted operating profit excluding property profits¹ | _18c_ | **62** | 80 | _(22.5)%_ | 
| Adjusted operating profit¹ | _18a_ | **63** | 83 | _(24.1)%_ | 
| Adjusted earnings per share¹ | _10b_ | **13.3p** | 19.9p | _(33.2)%_ | 
| Return on capital employed¹ | _18d_ | **4.9%** | 5.6% | _(0.7)ppt_ | 
| Net debt / adjusted EBITDA¹ | _18b_ | **2.3x** | 2.7x | 0.4x | 
| Ordinary dividend per share | _11_ | **4.5p** | 5.5p | _(18.2)%_ | 
| Operating profit |  | **59** | 48 | _22.9%_ | 
| Profit after tax |  | **26** | 16 | _62.5%_ | 
| Basic earnings per share | _10a_ | **12.5p** | 7.4p | _68.9%_ |

_(1) Alternative performance measures are used to describe the Group’s performance.
Details of calculations can be found in the notes listed._

_(2) For continuing businesses only. The Toolstation France business is treated 
as a discontinued operation._

_* Company compiled consensus published as at 29 July 2025 showed FY25 adjusted 
operating profit (including property profits) with a range of £135m to £148m and
a mean of £141m. See link: https://www.travisperkinsplc.co.uk/investors/analyst-
consensus/_

> **Chair Geoff Drabble, commented:**
> “The first quarter was difficult with a continued trend of market share loss and
> revenue decline in Merchanting. However, I was encouraged by the response of the
> business to management actions to drive a more customer-focused approach. In the
> second quarter we delivered improved revenue performance and stabilised Merchanting
> market share and these trends have continued into July.
> We will build on this momentum in the second half as we deploy further system 
> enhancements that put the difficult Oracle implementation behind us. The strong
> performance of Toolstation UK, which operates in similar markets to the Group’s
> other businesses, demonstrates our potential without internal distractions.
> Whilst the market outlook for the second half remains uncertain, the Board anticipates
> that the Group will deliver a full year result broadly in line with current market
> expectations*.”

**Analyst Presentation**

Management are hosting a results presentation at 8.30am. For details of the event
please contact the Travis Perkins Investor Relations team as below. The presentation
will also be available via a listen-only webcast – please register at the following
link:

[https://travis-perkins-2025-half-year-results-presentation.open-exchange.net](https://travis-perkins-2025-half-year-results-presentation.open-exchange.net)

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