Builders merchant shut 19 branches in fourth quarter to weather impending slowdown
A fourth quarter restructure hit Travis Perkins鈥� bottom line last year as the firm prepared itself for a drop in construction activity.
Adjusted operating profit at the builders鈥� merchant was 拢295m in the year to 31 December 2022, down 16% from 拢353m the previous year, partly due to a 拢15m restructuring charge.
The business closed 19 branches and laid off 400 staff in the final quarter of 2022, anticipating 鈥渓ower levels of activity in the UK construction sector in the year ahead鈥�, according to its latest full-year results, published today.
The firm, which saw revenue improve 9% to 拢5bn, said it expected these cuts to deliver around 拢25m in cost savings in 2023. Pre-tax profit fell 20% to 拢245m.
Chief executive Nick Roberts added the firm had been forced to make 鈥渟ome difficult decisions in response to the weaker trading environment鈥� in the second half of the year.
The 拢58m drop in profit was also driven by lower property profits, down 拢24m, and two fewer trading days, which cost it 拢9m.
Travis Perkins鈥� merchanting business 鈥渋mproved its underlying operating profit鈥�, according to the results, but Toolstation鈥檚 full-year profit in the UK dropped dramatically, down 50% to 拢21m, despite a second half improvement.
The pandemic led to it cutting 165 branches and around 2,500 staff, with the restructuring seeing it shell out close to 拢30m on redundancy payments and 拢46m on property costs.
No comments yet