REG - Travis Perkins PLC - Travis Perkins plc - 2025 Results Announcement
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RNS Number : 8574W Travis Perkins PLC 17 March 2026
17 March 2026
Travis Perkins plc, the UK's largest distributor of building materials,
announces its full year results for the year to 31 December 2025
2025 adjusted operating profit at £133m with a significantly
enhanced financial position
Business performance stabilised
● Group like-for-like revenue growth of 0.3%, with the sharper
competitive proposition in H2 offsetting the impact of operational challenges
at the start of the year
● Adjusted operating profit of £133m (2024: £152m), reflecting lower
margins in Merchanting
● Strong progress in Toolstation UK with adjusted operating profit
increasing 29% to £44m
● Proactive management of overheads to mitigate cost inflation and
increased employer national insurance, with significant restructuring of
central and regional roles in 2025
● Operating loss of £97m (2024: profit of £2m) reflecting the
trading performance and adjusting items of £222m (£8m cash items) related to
impairments of Toolstation Benelux, CCF and specific Merchanting branches; the
sale of Staircraft; and restructuring actions
● Gavin Slark joined the Group as a sector-experienced CEO on 1
January 2026
Robust balance sheet provides flexibility and resilience
● Net cash before leases of £1m driven by £136m working capital
inflow, proceeds from the divestment of Staircraft and a disciplined approach
to capital expenditure
● Over £800m of liquidity headroom through cash holdings (£427m) and
undrawn committed facilities (£390m)
● £250m bond fully refinanced with investment-grade US private
placement notes. No significant refinancing requirements until 2028.
£m (unless otherwise stated) Note 2025 2024 Change
Revenue 6 4,565 4,607 (0.9)%
Adjusted operating profit¹ 7 133 152 (12.5)%
Adjusted earnings per share¹ 7 30.8p 36.6p (15.8)%
Return on capital employed¹ 18 5.3% 5.4% (0.1)ppt
Net debt / adjusted EBITDA¹ 19 2.1x 2.5x 0.4x
Ordinary dividend per share 14 12.0p 14.5p (17.2)%
Operating (loss) / profit (97) 2
Loss after tax (176) (77) (128.6)%
Basic earnings per share 15 (83.3)p (36.6)p (127.6)%
(1) Alternative performance measures are used to describe the Group's
performance. Details of calculations can be found in the notes listed.
Gavin Slark, CEO, commented:
"I am delighted to have joined as CEO of Travis Perkins plc. It is a business
I am very familiar with from my time in the industry and that has enabled me
to hit the ground running since I joined at the start of January. I have been
immediately impressed with the energy and enthusiasm that exists across all
parts of the Group to rebuild our capabilities and performance and enhance our
standing as the UK's largest distributor of building materials.
We have fantastic brands and locations, complemented by a resilient and
committed workforce who want to see us back at our best. I want to thank Geoff
Drabble, our Chairman, for stepping in and supporting the management team last
year and for putting in place the foundations of our recovery. I also want to
thank all our colleagues for their dedication and effort in responding to
these changes.
We have made significant operational progress over the past year. We have a
fully resourced senior management team in place, have successfully overcome
the difficulties associated with implementing a new IT system and have taken
action to reduce the administrative overheads in our central and regional
teams. However, it is the strength of our balance sheet that now provides the
necessary resilience and flexibility to underpin our competitiveness in what
remains a challenging market backdrop for UK construction activity. We will
maintain our disciplined and selective approach to capital allocation as we
navigate our way back to better market conditions.
I am looking forward to working with all our colleagues to develop and
communicate our strategy for the Group as we look to the future. I have no
doubt that we can restore the Group's performance and create significant
shareholder value over the medium term."
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-fy-results-25.open-exchange.net/webcas
(https://travis-perkins-fy-results-25.open-exchange.net/webcast) t
(https://travis-perkins-fy-results-25.open-exchange.net/webcast)
Enquiries:
Travis Perkins FGS Global
Investor Relations Faeth Birch / Jenny Davey / James Gray
investor.relations@travisperkins.co.uk TravisPerkins@fgsglobal.com
(mailto:investor.relations@travisperkins.co.uk)
+44 (0) 207 251 3801
Cautionary Statement:
This announcement contains "forward-looking statements" with respect to Travis
Perkins' financial condition, results of operations and business and details
of plans and objectives in respect to these items. Forward-looking statements
are sometimes, but not always, identified by their use of a date in the future
or such words as "anticipates", "aims", "due", "could", "may", "will",
"should", "expects", "believes", "seeks", "intends", "plans", "potential",
"reasonably possible", "targets", "goal" or "estimates", and words of similar
meaning. By their very nature forward-looking statements are inherently
unpredictable, speculative and involve risk and uncertainty because they
relate to events and depend on circumstances that will occur in the future.
There are a number of factors that could cause actual results and developments
to differ materially from those expressed or implied by these forward-looking
statements. These factors include, but are not limited to, the Principal Risks
and Uncertainties disclosed in the Group's Annual Report and as updated in
this statement, changes in the economies and markets in which the Group
operates; changes in the legislative, regulatory and competition frameworks in
which the Group operates; changes in the capital markets from which the Group
raises finance; the impact of legal or other proceedings against or which
affect the Group; and changes in interest and exchange rates. All
forward-looking statements, made in this announcement or made subsequently,
which are attributable to Travis Perkins or any other member of the Group or
persons acting on their behalf are expressly qualified in their entirety by
the factors referred to above. No assurances can be given that the
forward-looking statements in this document will be realised. Subject to
compliance with applicable law and regulations, Travis Perkins does not intend
to update these forward-looking statements and does not undertake any
obligation to do so. Nothing in this document should be regarded as a profits
forecast.
Without prejudice to the above:
(a) neither Travis Perkins plc nor any other member of the Group, nor persons
acting on their behalf shall otherwise have any liability whatsoever for loss
howsoever arising, directly or indirectly, from the use of the information
contained within this announcement; and
(b) neither Travis Perkins plc nor any other member of the Group, nor persons
acting on their behalf makes any representation or warranty, express or
implied, as to the accuracy or completeness of the information contained
within this announcement.
This announcement is current as of 17th March 2026, the date on which it is
given. This announcement has not been and will not be updated to reflect any
changes since that date.
Past performance of the shares of Travis Perkins plc cannot be relied upon as
a guide to the future performance of the shares of Travis Perkins plc.
2025 Performance
The Group delivered revenue of £4,565m, down 0.9% versus the prior year. The
decline in revenue was driven by the Merchanting segment with activity across
the majority of end markets remaining subdued throughout the year. Despite the
softer backdrop this segment saw sequential improvement in the second half as
the Group made good progress in adjusting to using Oracle and sharpened its
competitive position through pricing and promotional initiatives. This swing
was most marked in the General Merchant, which has begun to reverse a recent
trend of market share losses as performance started to stabilise and then
improve.
Toolstation delivered a robust revenue performance and continued to take
market share as the estate continued to mature.
Adjusted operating profit of £133m was £19m, or 12.5%, lower than 2024,
reflecting:
● £32m decline in gross profit in Merchanting primarily driven by lower
trading volumes, greater promotional activity and one less trading day
● Overheads in line with the prior year with cost inflation and increased
employer national insurance contributions broadly mitigated by proactive cost
management
● Property profits of £10m were £1m lower than the prior year
Leadership and structures
Gavin Slark joined the Group as CEO on 1 January 2026. Gavin is a highly
experienced public company CEO with significant experience of the building
materials and merchanting industry having previously been CEO of SIG plc since
2023. Prior to this, he was CEO of Grafton Group plc (2011-22) and CEO of The
BSS Group plc (2006-11) before its acquisition by Travis Perkins plc.
Since joining, Gavin has changed the organisational structure so that all of
the Managing Directors now report directly to him. This has shortened lines of
communication and will ensure the most efficient ways of working across the
Group.
Balance sheet
The Group has made excellent progress on actions to strengthen the balance
sheet during the year, with overall net debt reducing by £224m and net debt
before leases reducing by £192m to deliver a net cash position (before
leases) for the first time in nearly 30 years. Accordingly, despite the
further reduction in earnings, net debt / adjusted EBITDA has reduced by 0.4x
to 2.1x. This progress supports the Group's journey back to its clearly stated
target leverage range of 1.5 - 2.0x throughout the cycle, with further
deleveraging targeted in 2026.
Dividend
The Board is recommending a final dividend of 7.5 pence per share (2024: 9.0
pence per share) to give a full-year dividend of 12.0 pence per share (2024:
14.5 pence per share), in line with the Group's policy to pay a dividend of
30-40% of adjusted earnings. The dividend will be paid on 28 May 2026 to
shareholders on the register as at close of business on 17 April 2026.
Current trading and outlook
The trading environment since the start of the year has remained subdued and
this reflects a continuation of the weak UK construction activity figures
reported for the final quarter of 2025. Against this backdrop the Group will
remain focused on improving its customer proposition, leveraging its strong
financial position, and delivering further operational efficiencies in
readiness for when market conditions recover.
Technical guidance
The Group's technical guidance for 2026 is as follows:
● Expected ETR of around 30% on UK generated profits
● Base capital expenditure of around £80m
● Property profits of around £5m
● Interest expense £6m higher as a result of refinancing the £250m
3.75%-coupon bond. The Group's current strong cash position also results in
higher interest income as a partial offset
Adjusting items
There were £222m of adjusting items (£8m cash items) in the year (2024:
£139m) as set out below:
£m 2025 2024
Merchanting impairments 111 63
Toolstation Europe impairments and restructuring 99 -
Restructuring 12 43
Staircraft impairment and divestment 3 33
Adjustments to prior year items (3) -
Total 222 139
The 2025 branch-level impairment review identified 196 branches where the
carrying value of the branch's assets was above the value of the discounted
future cash flows generated from those assets. The total non-cash impairment
recognised in relation to these branches is £67m (2024: £63m). In the
majority of cases, the branches are expected to deliver a positive
contribution in 2026 with the vast majority delivering a positive contribution
in the future, based on cautious financial planning assumptions.
A non-cash goodwill impairment of £44m has been recognised following the
annual impairment review of the CCF business, taking into account the
structural challenges in its end markets and future forecasts of
profitability.
The Toolstation Europe impairment charge relates to the non-cash write-down of
goodwill, property and right-of-use assets in the Toolstation Benelux business
under IFRS accounting rules. The Toolstation Europe restructuring charge
relates to restructuring costs in Toolstation Benelux and adjustments in
respect of redundancy provisions and lease liabilities related to Toolstation
France recognised in previous years.
The restructuring charge of £12m relates to severance payments made as a
result of headcount reductions in Q1 and Q4 2025, the majority of these roles
being in central functions or regional support teams. In 2024 there were £43m
of adjusting items related to central and regional restructuring, supply chain
consolidation and the closure of 39 standalone Benchmarx branches.
Of the total £222m adjusting items recorded in 2025, approximately £6m
represents 2026 Q1 cash obligations relating to severance costs in the
restructuring items. Cash payments in 2025 related to these adjusting items
were £8m.
Property
The Group generated property profits of £10m in the year, with £51m of cash
proceeds, as the Group's freehold property portfolio continues to provide
opportunities to release cash, as well as fulfilling its primary objectives of
operational security and flexibility. The Group expects property profits of
around £5m for 2026.
Segmental performance
Merchanting
2025 2024 Change
Revenue £3,722m £3,786m (1.7)%
Like-for-like growth (0.1)% (6.8)% 6.7ppt
Adjusted operating profit £122m £149m (18.1)%
Adjusted operating margin 3.3% 3.9% (60)bps
ROCE 6% 7% (1.0)ppt
Branch network 727 724 3
The Group's Merchanting businesses saw flat like-for-like revenue, as a
sharper commercial proposition and the deployment of sales-driven incentives
progressively offset the ongoing impact of depressed levels of UK construction
activity. Like-for-like volume growth of 0.5% was fully offset by sales price
deflation of 0.6% as market over-capacity hindered the ability of distributors
to pass modest manufacturer price increases to customers. A 0.7% impact from
the divestment of Staircraft and a 0.6% impact from one fewer trading day saw
overall revenue down by 1.7% in 2025.
During the second half management implemented a series of actions to rebuild
market share, including targeted promotions in plasterboard, PIR insulation
board and class B bricks, sales-driven incentives and the continuing addition
of resources back into customer-facing roles to improve service levels. These
actions and greater leadership stability have improved the trading performance
with 45,000 net new customer accounts opened in 2025 and like-for-like sales
improving throughout the year:
Merchanting like-for-like revenue
Q1 2024 (4.2)%
Q2 2024 (7.9)%
Q3 2024 (8.2)%
Q4 2024 (6.8)%
Q1 2025 (3.2)%
Q2 2025 (1.0)%
Q3 2025 1.7%
Q4 2025 2.1%
Adjusted operating profit reduced by 18.1% to £122m despite focussed cost
management, reflecting the high operational gearing of these businesses. The
operating profit of £3m (2024: £20m) was the result of these factors and
adjusting items of £123m (2024: £133m) relating to impairments and
restructuring actions.
There was limited change in the Merchanting branch network in 2025, reflecting
disciplined capital spend in a challenging market, with three new General
Merchant branches opened during the year in Birmingham, Watford and Salford,
and a small number of relocations.
On 30 April 2025, the Group sold its specialist floor kit, i-joist and
staircase manufacturer Staircraft for cash consideration of £21m as part of a
continued focus on simplifying the Group's operating model.
Toolstation
2025 2024 Change
Revenue £843m £821m 2.7%
Like-for-like growth 2.4% 1.9% 0.5ppt
Adjusted operating profit - UK £44m £34m 29.4%
Adjusted operating loss - Benelux £(11)m £(13)m 15.4%
Adjusted operating profit - Total £33m £21m 57.1%
Adjusted operating margin 3.9% 2.6% 130bps
ROCE 7% 4% 3ppt
Store network (UK) 590 587 3
Store network (Benelux) 109 110 (1)
UK
Toolstation UK continued to make strong progress during the year with revenue
increasing by 2.7%, reflecting store maturity benefits, price inflation and
further enhancements to the digital and physical customer experience. App
sales are increasing and growth in customer loyalty, with c. 700k Toolstation
Club members now signed up, has helped increase average order value for those
customers.
A net three stores were added during the year with eight new stores and five
closures. Up to 20 new store openings are expected in 2026, including the
launch of the new urban convenience format Toolstation GO, which is being
trialled with the first store opening in Battersea, London.
Adjusted operating profit increased by £10m (29.4%) year-on-year driven by a
combination of sales growth, gross margin benefits from improved purchasing,
and pricing and supply chain efficiencies.
The Group looks forward to another year of strong progress in Toolstation UK
in 2026.
Benelux
Toolstation Benelux generated an adjusted operating loss of £11m in 2025, a
slight improvement on the prior year. While store-generated sales were up 7.0%
on a like-for-like basis and overheads well controlled, the upgrade to the
Benelux customer website during the first half caused significant disruption
and did not deliver the expected online sales growth, with online sales down
by 1.8%.
With the Dutch and Belgium markets remaining subdued, management will continue
to review its strategy in Benelux. Short-term actions being taken to reduce
the ongoing losses include a proposed restructure and reduction in central
headcount and the implementation of further supply chain efficiencies.
The Group expects a similar level of loss in Toolstation Benelux in 2026.
Financial Performance
Revenue analysis
The Merchanting businesses saw modest price deflation as a result of the
intense competitive environment and limited volume growth, with key markets
and geographies, particularly construction activity in London and the south
east, remaining weak. There was one fewer trading day than in the prior year.
Toolstation delivered good like-for-like revenue growth as its strong customer
proposition, robust pricing and maturity benefits outweighed the impact of the
challenging market.
Volume, price and mix analysis
Merchanting Toolstation Group
Price and mix (0.6)% 1.4% (0.2)%
Like-for-like volume 0.5% 1.0% 0.5%
Like-for-like revenue growth (0.1)% 2.4% 0.3%
Network changes (1.0)% 0.6% (0.6)%
Trading days (0.6)% (0.3)% (0.6)%
Total revenue growth (1.7)% 2.7% (0.9)%
Quarterly revenue analysis
Total revenue Like-for-like revenue
2025 2024 2025 2024
Merchanting Q1 (3.5)% (6.0)% (3.2)% (4.2)%
Q2 (2.7)% (5.7)% (1.0)% (7.9)%
H1 (3.1)% (5.8)% (2.1)% (6.1)%
Q3 (0.3)% (7.1)% 1.7% (8.2)%
Q4 (0.2)% (5.8)% 2.1% (6.8)%
H2 (0.2)% (6.5)% 1.9% (7.6)%
FY (1.7)% (6.2)% (0.1)% (6.8)%
Toolstation Q1 2.8% 0.9% 3.7% (1.2)%
Q2 2.7% 3.6% 2.3% 2.4%
H1 2.7% 2.3% 2.9% 0.6%
Q3 3.0% 3.0% 2.3% 2.2%
Q4 2.0% 2.2% 1.8% 4.3%
H2 2.5% 2.6% 2.0% 3.3%
FY 2.7% 2.5% 2.4% 1.9%
Total Group Q1 (2.4)% (4.9)% (2.1)% (3.5)%
Q2 (1.8)% (4.2)% (0.5)% (6.2)%
H1 (2.1)% (4.5)% (1.2)% (4.9)%
Q3 0.3% (5.5)% 1.8% (6.6)%
Q4 0.2% (4.3)% 2.0% (4.8)%
H2 0.3% (5.0)% 1.9% (5.8)%
FY (0.9)% (4.7)% 0.3% (5.3)%
Operating profit
£m 2025 2024 Change
Merchanting 122 149 (18.1)%
Toolstation 33 21 57.1%
Unallocated costs (32) (29) (10.3)%
Adjusted operating profit excluding property profits 123 141 (12.8)%
Property profits 10 11 (9.1)%
Adjusted operating profit 133 152 (12.5)%
Amortisation of acquired intangible assets (8) (11)
Adjusting items (222) (139)
Operating profit (97) 2
Finance charge
Net finance charges of £38m are lower than the previous year (2024: £41m) as
a result of interest income on the Group's cash deposits. See note 10 for
details.
The Group's interest expense will be £6m higher in 2026 as a result of
refinancing the £250m 3.75%-coupon bond, but the Group's current strong cash
position also results in higher interest income as a partial offset.
Taxation
The tax charge before adjusting items was £28m (2024: £31m) giving an
adjusted effective tax rate ("adjusted ETR") of 31.5% (standard rate: 25.0%,
2024 actual: 30.4%). The adjusted ETR rate is substantially higher than the
standard rate due to the effect of expenses not deductible for tax purposes
and unutilised overseas losses.
The statutory tax charge for 2025 was £42m (2024: £2m) giving an effective
tax rate of negative 30.9% (2024: negative 5.7%). This is lower than the
adjusted ETR as a result of the tax effect of the impairment of goodwill.
The Group expects an ETR of around 30% on UK generated profits in 2026.
Earnings per share
The Group reported a total loss after tax of £176m (2024: loss of £77m)
resulting in basic loss per share of 83.3 pence (2024: loss per share of 36.6
pence). Diluted loss per share was 83.3 pence (2024: loss per share of 36.6
pence).
Adjusted profit after tax was £65m (2024: £77m) resulting in adjusted
earnings per share of 30.8 pence (2024: 36.6 pence).
Cash flow and balance sheet
Free cash flow
£m 2025 2024 Change
Adjusted operating profit excluding property profits 123 141 (18)
Depreciation of PPE and share-based payments 78 96 (18)
Change in working capital 136 6 130
Net interest paid before lease interest (20) (20) 0
Interest on lease liabilities (30) (30) 0
Tax paid (22) (21) (1)
Adjusted operating cash flow 265 172 93
Capital investments
Capex excluding freehold transactions (60) (64) 4
Proceeds from disposals excluding freehold transactions 1 1 0
Free cash flow 206 109 97
The Group made strong progress on cash generation with free cash flow £97m
higher than the prior year despite a reduction of £18m in adjusted operating
profit excluding property profits. This was primarily due to the normalisation
of supplier payments arising from the cutover challenges of moving onto Oracle
in the prior year and good progress on collecting overdue debt, also resulting
from the Oracle implementation. Stock management remains disciplined with the
£25m increase in line with inflation.
Capital investment
£m 2025 2024
Strategic 15 21
Maintenance 39 39
IT 6 4
Base capital expenditure 60 64
Freehold property 26 12
Gross capital expenditure 86 76
Disposals (52) (63)
Net capital expenditure 34 13
The disciplined approach to capital investment continued in 2025, with
expenditure £4m lower than 2024. As part of the Group's prioritisation of
reducing leverage, freehold development and acquisitions were £26m lower than
the proceeds of freehold disposals, which were primarily sale and leaseback
transactions. The Group is targeting base capital expenditure of around £80m
for 2026.
Uses of free cash flow
£m 2025 2024 Change
Free cash flow 206 109 97
Investments in freehold property (26) (12) (14)
Disposal proceeds from freehold transactions 52 63 (11)
Dividends paid (28) (24) (4)
Sale of Staircraft 21 - 21
Drawdown of borrowings 250 - 250
Repayment of bonds (249) - (249)
Cash payments on adjusting and discontinued items (30) (36) 6
Change in cash and cash equivalents 196 100
Cash and cash equivalents increased by £196m driven by strong free cash flow,
a planned reduction in freehold property investment and adherence to the
Group's policy on dividend distribution.
The £250m 2026 bond was repaid and replaced with £250m of investment-grade
US private placement notes.
Net debt and funding
31 Dec 2025 31 Dec 2024 Change Covenant
Net debt £621m £845m £224m
Net debt / adjusted EBITDA 2.1x 2.5x 0.4x <4.0x
Net (cash) / debt before leases £(1)m £191m £192m
Net debt before leases / adjusted EBITDA 0.0x 0.6x 0.6x
Note - All covenant metrics measured post IFRS16.
Net debt before leases reduced by £192m driven by improvements in working
capital, a disciplined approach to capital expenditure and the cumulative
effect of the lower cash dividend.
Overall net debt reduced by £224m as a result of the strong cash performance
and the reduction in lease liabilities from the sale of Staircraft and
settlement of legacy Toolstation France leases.
Funding
As at 31 December 2025, the Group's committed funding of £800m comprised:
● £75m bilateral bank loan due August 2027
● A revolving credit facility of £375m maturing in November 2028 and
November 2030
● £350m of US private placement notes, maturing between 2028 and 2037
As at 31 December 2025, the Group had undrawn committed facilities of £390m
(2024: £390m) and deposited cash of £413m (2024: £200m), giving overall
liquidity headroom of £803m (2024: £590m).
The £250m February 2026 sterling bond was fully refinanced during the year
through two US private placement issuances. The new notes were issued at
investment grade yields to seven investors with maturities between 2028 and
2035. The Group has no significant refinancing requirements until 2028 and a
spread debt maturity profile, providing strategic flexibility and enabling
long-term decision-making.
Principal risks and uncertainties
Against a backdrop of continued uncertainty, both nationally and globally, the
Group has continued to take a proactive approach to risk management to
identify and pursue opportunities, rebuild and deliver against its strategic
priorities, and, most importantly, prioritise the safety and well-being of
colleagues and customers.
During the year, the Board has reviewed the Group's principal risks and made a
number of updates to the risk set, to more accurately reflect the current
environment and business priorities. The risks remain broadly in line with
those presented in pages 52 to 59 of the 2025 Annual Report & Accounts,
and updates made are summarised below:
● Risks in relation to macroeconomic volatility and long-term market
trends have been combined under External Market & Environment to enable
focus on shorter-term responsiveness to changes in the market, as well as
longer-term opportunity;
● In recent years the Group has focused on technology-enabled business
change, leading up to the implementation of new systems across the business.
There is now a drive to focus on core business operations and maximising value
from new system capability, rather than an appetite for further large-scale
change across the Group. As such, Managing Change is no longer considered a
standalone principal risk and has been replaced with a principal risk focusing
on Business Operating Model & Driving Competitive Advantage.
● Changes in technology, along with increasing geopolitical tensions, mean
that organisational resilience becomes much wider than IT risk. As such, the
Group's principal risks in relation to critical asset failure and supply chain
resilience, have been combined into one risk covering the broader topic of
Business Continuity & Resilience, to include supply chain, critical
infrastructure and key IT dependencies.
● We remain committed to ensuring we have the right people in the right
roles to meet the needs of our customers and suppliers, and acknowledge the
ongoing challenge across the sector in obtaining and retaining people with the
skills and experience needed for a changing market. As such, People &
Skills has been added as a standalone principal risk.
Accordingly, the 2025 Annual Report & Accounts will report risks under the
following captions: external market & environment, business continuity
& resilience, climate change & carbon reduction, cyber threat &
data security, legal compliance, health, safety & wellbeing, business
operating model & driving competitive advantage and people & skills.
For the principal risks carried forward from 2024, the risk trends and
inherent level have been reviewed and remain unchanged.
The Group seeks to capture emerging risks that do not currently present a
significant risk but which may have the potential to adversely impact its
operations in the future. Global unrest, including the war in Ukraine and
conflict in the Middle East, continue to be monitored as potential risks in
relation to supply chain and macroeconomic volatility more generally, and the
Group continues to ensure compliance with relevant trade sanctions. The Board
remains watchful of developments which may impact the Group such as economic
policy and political uncertainty. There are no other emerging risks considered
significant enough to report at this time.
Consolidated income statement
For the year ended 31 December 2025
£m Notes 2025 2024
Revenue 6 4,564.6 4,607.4
Cost of sales (3,372.0) (3,403.7)
Gross profit 1,192.6 1,203.7
Charge for impairment losses for trade receivables (16.4) (16.7)
Selling and distribution (797.1) (779.2)
Administrative expenses - other (259.1) (271.3)
Profit on disposal of properties 9.9 11.3
Other operating income 3.5 4.0
Adjusted operating profit 133.4 151.8
Administrative expenses - adjusting items 8 (222.2) (139.1)
Administrative expenses - amortisation of acquisition-related intangible 9 (7.8) (10.4)
assets
Operating (loss) / profit 7 (96.6) 2.3
Finance income 10 20.1 11.1
Finance costs 10 (58.2) (51.8)
Loss before tax (134.7) (38.4)
Adjusting items - deferred tax (27.2) -
Tax on adjusting items 13.8 29.0
Other tax (28.2) (31.2)
Total tax (41.6) (2.2)
Loss from continuing operations (176.3) (40.6)
Loss from discontinuing operations 12 - (36.8)
Loss for the year (176.3) (77.4)
All loss for the year is attributable to the owners of the Company.
Earnings per share (note 15):
2025 2024
Basic earnings per share
- from continuing operations (83.3)p (19.2)p
- total (83.3)p (36.6)p
Diluted earnings per share
- from continuing operations (83.3)p (19.2)p
- total (83.3)p (36.6)p
Adjusted basic earnings per share 30.8p 36.6p
Total dividend declared per share (note 14) 12.0p 14.5p
The accompanying notes form an integral part of these financial statements.
Consolidated statement of comprehensive income
For the year ended 31 December 2025
£m Notes 2025 2024
Loss for the year (176.3) (77.4)
Items that will not be reclassified subsequently to profit and loss:
Actuarial (loss) / gain on defined benefit pension schemes 13 (4.2) 35.1
Deferred tax credit / (charge) relating to other comprehensive income 1.0 (9.5)
Items that may be reclassified subsequently to profit and loss:
Foreign exchange differences on retranslation of foreign operations 4.1 (2.3)
Fair value (loss) / gain on cash flow hedges (5.1) 0.4
Reclassification of cash flow hedges to profit or loss 2.2 -
Deferred tax on cash flow hedges 0.9 (0.1)
Total other comprehensive (loss) / profit for the year net of tax (1.1) 23.6
Total comprehensive loss for the year (177.4) (53.8)
Total comprehensive loss for the year attributable to the owners of the
Company arises from:
2025 2024
Continuing operations (177.4) (16.9)
Discontinued operations - (36.9)
(177.4) (53.8)
All other comprehensive loss is attributable to the owners of the Company.
Consolidated balance sheet
As at 31 December 2025
£m Notes 2025 2024
Assets
Non-current assets
Goodwill 720.8 821.3
Other intangible assets 65.9 86.9
Property, plant and equipment 655.0 771.1
Right-of-use assets 512.8 545.4
Non-current prepayments 12.0 15.3
Deferred tax asset - 17.5
Derivative financial instruments 1.3 3.3
Retirement benefit asset 13 118.1 116.9
Total non-current assets 2,085.9 2,377.7
Current assets
Inventories 666.9 648.6
Trade and other receivables 630.7 760.5
Tax debtor 0.4 -
Cash and cash equivalents, excluding bank overdrafts 16 426.9 244.4
Total current assets 1,724.9 1,653.5
Total assets 3,810.8 4,031.2
Equity and liabilities
Capital and reserves
Issued share capital 23.8 23.8
Share premium account 545.6 545.6
Cash flow hedge reserve 0.5 2.5
Merger reserve 326.5 326.5
Revaluation reserve 8.2 9.5
Own shares (3.9) (7.2)
Foreign exchange reserve 10.2 6.1
Capital redemption reserve 1.4 1.4
Retained earnings 864.0 1,065.9
Total equity 1,776.3 1,974.1
Non-current liabilities
Interest-bearing loans and borrowings 16 419.4 421.8
Lease liabilities 16 532.7 560.1
Derivative financial instruments 3.1 -
Deferred tax liabilities 63.7 68.3
Long-term provisions 14.0 21.6
Total non-current liabilities 1,032.9 1,071.8
Current liabilities
Interest-bearing loans and borrowings 16 7.2 -
Lease liabilities 16 88.7 94.5
Overdraft 16 - 13.2
Derivative financial instruments 0.1 -
Trade and other payables 864.2 838.2
Short-term provisions 41.4 39.4
Total current liabilities 1,001.6 985.3
Total liabilities 2,034.5 2,057.1
Total equity and liabilities 3,810.8 4,031.2
Consolidated statement of changes in equity
For the year ended 31 December 2025
£m Share capital Share premium Cash flow hedge reserve Merger reserve Revaluation Own shares Foreign exchange reserve Capital redemption reserve Retained earnings Total
reserve equity
At 1 January 2024 23.8 545.6 2.9 326.5 10.8 (14.1) 8.4 1.4 1,135.0 2,040.3
Loss for the year - - - - - - - - (77.4) (77.4)
Other comprehensive income for the year net of tax - - 0.3 - - - (2.3) - 25.6 23.6
Total comprehensive loss for the year - - 0.3 - - - (2.3) - (51.8) (53.8)
Dividends paid - - - - - - - - (23.2) (23.2)
Adjustments in respect of revalued fixed assets net of tax - - - - (1.3) - - - 1.5 0.2
Sale of own shares - - - - - 0.1 - - - 0.1
Own shares movement - - - - - 6.8 - - (6.8) -
Exercise of options over non-controlling interest - - - - - - - - (1.2) (1.2)
Equity-settled share-based payments net of tax - - - - - - - - 11.7 11.7
Reclassifications - - (0.7) - - - - - 0.7 -
At 1 January 2025 23.8 545.6 2.5 326.5 9.5 (7.2) 6.1 1.4 1,065.9 1,974.1
Loss for the year - - - - - - - - (176.3) (176.3)
Other comprehensive loss for the year net of tax - - (2.0) - - - 4.1 - (3.2) (1.1)
Total comprehensive loss for the year - - (2.0) - - - 4.1 - (179.5) (177.4)
Dividends paid - - - - - - - - (28.6) (28.6)
Adjustments in respect of revalued fixed assets net of tax - - - - (1.3) - - - 1.9 0.6
Own shares movement - - - - - 3.3 - - (3.3) -
Equity-settled share-based payments net of tax - - - - - - - - 7.6 7.6
At 31 December 2025 23.8 545.6 0.5 326.5 8.2 (3.9) 10.2 1.4 864.0 1,776.3
Consolidated cash flow statement
For the year ended 31 December 2025
£m 2025 2024
Cash flows from operating activities
Loss before tax (134.7) (38.4)
Adjustments for:
Depreciation of property, plant and equipment 66.0 79.8
Depreciation of right-of-use assets 87.4 96.8
Amortisation of other intangibles 3.7 3.6
Amortisation of acquisition-related intangibles 7.8 10.4
Share-based payments 7.7 11.7
Gain on disposal of property, plant and equipment (9.9) (11.3)
Purchase of tool hire assets (9.8) (3.8)
Finance income (20.1) (11.1)
Finance costs 58.2 51.8
(Increase) / decrease in inventories (24.5) 63.6
Decrease / (increase) in receivables 125.7 (76.1)
Increase in payables 33.9 18.0
Adjusting items payments less than the charge 214.7 119.2
Cash generated from operations 406.1 314.2
Income taxes paid (21.7) (20.9)
Net cash inflow from continuing operating activities 384.4 293.3
Net cash outflow from discontinued operating activities (9.1) (15.9)
Net cash from operating activities 375.3 277.4
Cash flows from investing activities
Interest received 11.7 5.8
Proceeds on disposal of property, plant and equipment 52.0 63.0
Purchases of land and buildings (27.0) (12.3)
Purchases of other property, plant and equipment (46.8) (55.8)
Purchase/development of computer software (3.5) (4.1)
Proceeds on sale of subsidiary (note 8) 20.8 -
Net cash inflow / (outflow) from continuing investing activities 7.2 (3.4)
Net cash inflow / (outflow) from investing activities 7.2 (3.4)
Cash flows from financing activities
Sale of own shares - 0.1
Repayment of lease liabilities (95.9) (93.8)
Dividends paid (28.6) (23.2)
Drawdown of borrowings 250.5 -
Repayment of bonds (248.7) -
Interest paid and debt arrangement fees (31.9) (25.3)
Interest on lease liabilities (29.7) (29.6)
Net cash outflow used in continuing financing activities (184.3) (171.8)
Net cash outflow used in discontinued financing activities (2.5) (2.5)
Net cash used in financing activities (186.8) (174.3)
Net increase in cash and cash equivalents 195.7 99.7
Cash and cash equivalents at 1 January 231.2 131.5
Cash and cash equivalents at 31 December (note 16) 426.9 231.2
Notes
1. The Group's principal accounting policies are set out in the 2025
Annual Report & Accounts, which is available on the Company's website
www.travisperkinsplc.co.uk (http://www.travisperkinsplc.co.uk) . All
accounting policies have been applied consistently in 2025.
2. The Directors are recommending a final dividend of 7.5p in respect of
the year ended 31 December 2025 (2024: 9.0p). The dividend will be paid on 28
May 2026 to shareholders on the register at the close of business on 17 April
2026. The Company's shares will go ex-dividend on 16 April 2026. The Company
operates a Dividend Reinvestment Plan, elections for which must be received
by the Company's registrar by 5.30pm on 6 May 2026.
3. The financial information set out above does not constitute the
Group's statutory accounts for the years ended 31 December 2024 or 2025. The
financial information for 2024 is derived from the statutory accounts for the
year ended 31 December 2024 which have been delivered to the registrar of
companies. The auditor has reported on the 2024 accounts; their report was (i)
unqualified, (ii) did not include a reference to any matters to which the
auditor drew attention by way of emphasis without qualifying their report and
(iii) did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006. The statutory accounts for 2025 will be finalised on the
basis of the financial information presented by the Directors in this
preliminary announcement and will be delivered to the Registrar of Companies
in due course.
4. This announcement was approved by the Board of Directors on 16 March
2026.
5. It is intended to post the Annual Report & Accounts to
shareholders on 30 March 2026 and to hold the Annual General Meeting on 21 May
2026. Copies of the annual report prepared in accordance with IFRS will be
available from the Company Secretary, Travis Perkins plc, Ryehill House, Rye
Hill Close, Lodge Farm Industrial Estate, Northampton, NN5 7UG from 17 March
2026 and will be available on the Group's website at www.travisperkinsplc.co
(http://www.travisperkinsplc.com) .uk.
6. Revenue reconciliation and like-for like sales
£m Merchanting Toolstation Total
2024 revenue 3,786.3 821.1 4,607.4
Network change (48.1) (6.8) (54.9)
Trading days (24.6) (2.1) (26.7)
2024 like-for-like revenue 3,713.6 812.2 4,525.8
Like-for-like change (4.7) 19.7 15.0
2025 like-for-like revenue 3,708.9 831.9 4,540.8
Network change 13.3 10.5 23.8
2025 revenue 3,722.2 842.4 4,564.6
Like-for-like revenue (decline) / growth (0.1%) 2.4% 0.3%
Total revenue (decline) / growth (1.7%) 2.7% (0.9%)
Like-for-like sales are a measure of underlying sales performance for two
successive periods. Branches and stores contribute to like-for-like sales once
they have been trading for more than 12 months. Revenue included in
like-for-like is for the equivalent times in both years being compared,
including changes to the number of trading days. When branches close, revenue
is excluded from the prior year figures for the months equivalent to the
post-closure period in the current year.
7. Profit
a. Operating profit
£m 2025 2024
Operating (loss) / profit (96.6) 2.3
Adjusting items (note 8) 222.2 139.1
Amortisation of acquisition-related intangible assets 7.8 10.4
Adjusted operating profit 133.4 151.8
Less: profit on disposal of properties (9.9) (11.3)
Adjusted operating profit excluding property profits 123.5 140.5
During the year the Group recognised a loss on the disposal of plant and
equipment of £0.6m (2024: gain of £0.8m).
b. Adjusted profit
£m 2025 2024
Loss before tax (134.7) (38.4)
Adjusting items (note 8) 222.2 139.1
Amortisation of acquisition-related intangible assets 7.8 10.4
Adjusted profit before tax 95.3 111.1
Total tax (41.6) (2.2)
Adjusting tax charge 27.2 -
Tax on adjusting items (13.8) (29.0)
Tax on amortisation of acquisition-related intangible assets (1.9) (2.6)
Adjusted profit after tax 65.2 77.3
Adjusted profit excludes adjusting items and amortisation of
acquisition-related intangible assets.
8. Adjusting items
Adjusting items are those items of income and expenditure that, individually
or in aggregate, by reference to the Group, are material in size and unusual
in nature or incidence and that in the judgement of the Directors should be
disclosed separately on the face of the financial statements (or in the notes
in the case of a segment) to ensure both that the reader has a clear
understanding of the Group's underlying financial performance and that there
is comparability of financial performance between periods.
Items of income or expense that are considered by the Directors for
designation as adjusting items include, but are not limited to, significant
one-year or multi-year restructuring programmes, onerous contracts,
write-downs or impairments of assets, the costs of acquiring and integrating
businesses, gains or losses on disposals of businesses and investments,
re-measurement gains or losses arising from changes in the fair value of
derivative financial instruments to the extent that hedge accounting is not
achieved or is not effective, pension scheme curtailment gains and the effect
of changes in corporation tax rates on deferred tax balances.
£m 2025 2024
Merchanting impairments 111.0 62.7
Toolstation Europe impairment and restructuring 98.6 -
Restructuring 12.4 43.7
Staircraft impairment and disposal 3.0 32.7
Adjustments to prior year adjusting operating items (2.8) -
222.2 139.1
Merchanting impairments
The 2025 full branch-level impairment review identified 196 branches where the
carrying value of the branch's assets was above the value of the discounted
future cash flows generated from those assets. The total impairment recognised
in relation to these branches is £67.4m (2024: £62.7m). In the majority of
cases the branches are expected to deliver a positive contribution in 2026
with the vast majority delivering a positive contribution in the future, based
on cautious financial planning assumptions. An impairment of £43.6m has been
recognised following the annual impairment review of the CCF business as a
result of challenging trading conditions in its markets, for more information
refer to note 28.
Toolstation Europe
The Toolstation Europe impairment charge relates to the write-down of
goodwill, property and right-of-use assets in the Toolstation Benelux business
by £105.5m (note 28). The Toolstation Europe restructuring charge relates to
restructuring costs in Toolstation Benelux and adjustments in respect of
redundancy provisions and gains on the early exit of leases related to
Toolstation France recognised in the previous year resulting in a release of
£6.9m.
Restructuring
The restructuring charge of £12.4m relates to severance payments made as a
result of headcount reductions, with these roles being in central functions or
regional support teams. In 2024 there were £43.7m of adjusting items related
to central and regional restructuring, supply chain consolidation and the
closure of 39 standalone Benchmarx branches.
Staircraft
The Staircraft business was sold during the year for consideration of £20.8m
and resulted in a loss on disposal of £3.0m. For more information refer to
note 30. In 2024 an impairment charge of £32.7m was recognised in respect of
the annual impairment review of the Staircraft business.
Adjustments to prior year adjusting operating items
The adjustments to prior year adjusting items relates to the release of
property and stock provisions recognised as adjusting in prior periods.
9. Business segments
The operating segments are identified on the basis of internal reports about
components of the Group that are regularly reviewed by the Chief Operating
Decision Maker ("CODM"), which is considered to be the Board, to assess
performance and allocate capital.
Both operating segments sell building materials to a wide range of customers,
none of which are dominant, and operate predominantly in the United Kingdom.
The Merchanting segment sells building materials at prices specifically
negotiated with customers, with variation in the products offered in each
branch. The Toolstation segment includes both the UK and Benelux business, and
sells building materials at a fixed price, with a fixed range in each store.
Segmental operating profit represents the result of each segment without
allocation of certain central costs, finance costs and tax. Segmental adjusted
operating profit is the result of each segment before adjusting items, the
amortisation of acquisition-related intangible assets and property profits.
Unallocated segment assets and liabilities comprise financial instruments,
current and deferred tax, cash, borrowings and pension scheme assets and
liabilities.
For the purposes of monitoring segment performance and allocating resources
between segments, the group's leadership team monitors the tangible,
intangible and financial assets attributable to each segment. All assets are
allocated to reportable segments with the exception of investments in
associates, other financial assets (except for trade and other receivables)
and tax assets. Assets used jointly by reportable segments are allocated on
the basis of the revenues earned by individual reportable segments.
2025
£m Merchanting Toolstation Unallocated Consolidated
Revenue 3,722.2 842.4 - 4,564.6
Operating profit / (loss) 2.9 (68.4) (31.1) (96.6)
Amortisation of acquisition-related intangible assets 5.4 2.4 - 7.8
Adjusting items 123.2 99.0 - 222.2
Less property profits (9.9) - - (9.9)
Segmental adjusted operating profit 121.6 33.0 (31.1) 123.5
Adjusted operating margin 3.3% 3.9% - 2.7%
Average capital employed 2,056.0 480.5 (16.3) 2,520.2
Segmental return on capital employed 5.9% 6.9%
Segment assets 2,626.0 617.6 567.2 3,810.8
Segment liabilities (1,129.9) (385.1) (519.5) (2,034.5)
Consolidated net assets 1,496.1 232.5 47.7 1,776.3
Capital expenditure excluding property 45.2 15.0 - 60.2
Depreciation of fixed assets and software amortisation 47.6 22.1 - 69.7
Depreciation of right-of-use assets 55.0 32.4 - 87.4
2024
£m Merchanting Toolstation Unallocated Consolidated
Revenue 3,786.3 821.1 - 4,607.4
Operating profit 19.5 12.0 (29.2) 2.3
Amortisation of acquisition-related intangible assets 7.6 2.8 - 10.4
Adjusting items 132.6 6.5 - 139.1
Less property profits (11.3) - - (11.3)
Segmental adjusted operating profit 148.4 21.3 (29.2) 140.5
Adjusted operating margin 3.9% 2.6% - 3.0%
Average capital employed 2,232.5 564.3 12.4 2,809.2
Segmental return on capital employed 6.6% 3.8%
Segment assets 2,888.0 726.6 416.6 4,031.2
Segment liabilities (1,165.3) (380.9) (510.9) (2,057.1)
Consolidated net assets 1,722.7 345.7 (94.3) 1,974.1
Capital expenditure excluding property 51.4 12.6 - 64.0
Depreciation of fixed assets and software amortisation 75.3 18.5 - 93.8
Depreciation of right-of-use assets 67.4 29.4 - 96.8
10. Net finance costs
£m 2025 2024
Items in the nature of interest:
Interest on bonds and other loans (24.6) (17.1)
Interest on bank facilities and overdrafts (1.8) (2.0)
Other interest - (1.8)
Other finance costs:
Amortisation of issue costs of bank loans (1.5) (1.3)
Remeasurement:
Net loss on remeasurement of derivatives at fair value (0.6) -
Lease interest:
Property (26.1) (26.5)
Equipment (3.6) (3.1)
Finance costs (58.2) (51.8)
Items in the nature of interest:
Interest receivable 11.7 6.0
Remeasurement:
Net gain on remeasurement of derivatives at fair value - 0.8
Gain on remeasurement of foreign exchange 0.7 -
Interest income - pension scheme 6.4 4.3
Gain on the repurchase of debt 1.3 -
Finance income 20.1 11.1
Net finance costs (38.1) (40.7)
11. Tax
£m 2025 2024
Current tax:
Current year 31.2 34.9
Prior year (9.9) 0.6
Total current tax 21.3 35.5
Deferred tax:
Current year 3.4 (32.8)
Prior year 16.9 (0.5)
Total deferred tax 20.3 (33.3)
Total tax charge 41.6 2.2
12. Discontinued operations
During 2024 the Group ceased the operations of its Toolstation France
business. As this business represented a separate geographical area of
operation and was a major proportion of the Group's loss for the year, the
Group concluded that it met the definition of a discontinued operation in IFRS
5 - Non-current Assets Held for Sale and Discontinued Operations. Accordingly
its results were presented as those of discontinued operations.
a. Results of discontinued operations
£m 2025 2024
Revenue - 16.3
Gross profit - 8.2
Operating expenses - (44.6)
Net finance costs - (0.4)
Loss before tax and loss from discontinuing operations - (36.8)
The loss before tax in 2024 of £36.8m included costs of £22.2m relating to
the closure of the business. There were no significant profit or loss
transactions related to the Toolstation France business in 2025 and therefore
no results from discontinued operations have been presented. Provisions of
£8.0m have been released primarily following the early exit of leases and
former colleagues leaving the social plan and have been presented in adjusting
items.
b. Cash flows relating to discontinued operations
£m 2025 2024
Net cash outflow from operating activities (9.1) (15.9)
Net cash used in financing activities (2.5) (2.5)
Net cash flows for the year for discontinued operations (11.6) (18.4)
13. Pension schemes
2025 2024
£m Gross assets Gross obligations Net Gross assets Gross obligations Net
Gross pension asset as at 1 January 971.1 (854.2) 116.9 1,096.9 (996.3) 100.6
Amounts recognised in income:
Administration expenses (1.7) (0.1) (1.8) (3.0) (0.1) (3.1)
Interest income / (cost) 52.0 (45.6) 6.4 48.7 (44.2) 4.5
Other movements:
Contributions from sponsoring companies 0.2 - 0.2 0.4 - 0.4
Foreign exchange 0.9 (0.3) 0.6 (0.5) 0.4 (0.1)
Withdrawal of assets - - - (23.2) - (23.2)
Benefits paid (47.4) 47.4 - (49.8) 49.8 -
Balance sheet reclassifications - - - - 2.7 2.7
Amounts recognised in other comprehensive income:
Return on plan assets (excluding amounts in net interest) (4.0) - (4.0) (98.4) - (98.4)
Actuarial loss from changes in demographic assumptions - (7.2) (7.2) - (4.7) (4.7)
Actuarial gain from changes in financial assumptions - 14.1 14.1 - 100.4 100.4
Actuarial (loss) / gain from experience adjustments - (7.1) (7.1) - 37.8 37.8
Gross pension asset as at 31 December 971.1 (853.0) 118.1 971.1 (854.2) 116.9
14. Dividends
Amounts were recognised in the financial statements as distributions to equity
shareholders as follows:
£m 2025 2024
Final dividend for the year ended 31 December 2024 of 9.0 pence (2023: 5.5 19.1 11.6
pence) per ordinary share
Interim dividend for the year ended 31 December 2025 of 4.5 pence (2024: 5.5 9.5 11.6
pence) per ordinary share
Total dividend recognised during the year 28.6 23.2
The Directors are recommending a final dividend of 7.5 pence in respect of the
year ended 31 December 2025. The anticipated cash payment in respect of the
proposed final dividend is £15.8m (2024: £19.1m).
15. Earnings per share
a. Basic and diluted earnings per share
£m 2025 2024
Loss attributable to the owners of the parent
- from continuing operations (176.3) (40.6)
- from discontinued operations - (36.8)
Weighted average number of shares for the purposes of basic earnings per share 211,697,889 211,106,493
Dilutive effect of share options on potential ordinary shares 3,686,346 3,794,915
Weighted average number of ordinary shares for the purposes of diluted 215,384,235 214,901,408
earnings per share
Loss per share
- from continuing operations (83.3)p (19.2)p
- from discontinued operations - (17.4)p
- total (83.3)p (36.6)p
Diluted loss per share
- from continuing operations (83.3)p (19.2)p
- from discontinued operations - (17.4)p
- total (83.3)p (36.6)p
A total of 1,823,148 share options (2024: 159,768 share options) had an
exercise price in excess of the average market value of the shares during the
year. As a result, these share options were excluded from the calculation of
diluted earnings per share.
b. Adjusted earnings per share
Adjusted earnings per share is calculated by excluding the effect of adjusting
items, the amortisation of acquisition-related intangible assets from earnings
and the loss from discontinued operations.
£m 2025 2024
Loss for the purposes of earnings per share (176.3) (77.4)
Adjusting items 222.2 139.1
Amortisation of acquisition-related intangible assets 7.8 10.4
Tax on adjusting items (13.8) (29.0)
Tax on amortisation of acquisition-related intangible assets (1.9) (2.6)
Adjusting tax 27.2 -
Loss from discontinued operations - 36.8
Earnings for adjusted earnings per share 65.2 77.3
Adjusted earnings per share 30.8p 36.6p
16. Net debt
Liabilities from financing activities Other assets and liabilities Total
£m Term loan Senior unsecured notes Liability to pension scheme Subtotal Cash and cash equivalents, including overdraft Leases
At 1 January 2024 71.5 349.0 24.6 445.1 (131.5) 608.4 922.0
Additions to leases - - - - - 152.1 152.1
Disposals of leases - - - - - (8.6) (8.6)
Cash flow - - - (99.7) (127.4) (227.1)
Finance charges and fees 0.9 0.4 - 1.3 - - 1.3
Loan settlement - - (24.6) (24.6) - - (24.6)
Discount unwind on lease liabilities - - - - - 30.1 30.1
At 31 December 2024 72.4 349.4 - 421.8 (231.2) 654.6 845.2
Additions to leases - - - - - 90.1 90.1
Disposals of leases - - - - - (24.9) (24.9)
Cash flow - 1.8 - 1.8 (195.7) (128.1) (322.0)
Finance charges and fees 0.2 (2.2) - (2.0) - - (2.0)
Foreign exchange retranslation of foreign currency debt - (2.2) - (2.2) - - (2.2)
Discount unwind on lease liabilities - - - - - 29.7 29.7
Reclassification 1.5 5.7 - 7.2 - - 7.2
31 December 2025 74.1 352.5 - 426.6 (426.9) 621.4 621.1
17. Cash flow metrics
£m 2025 2024
Loss before tax (134.7) (38.4)
Less: Net interest 38.1 40.7
Adjusting items 222.2 139.1
Amortisation of acquisition-related intangible assets 7.8 10.4
Profit on disposal of properties (9.9) (11.3)
Adjusted operating profit excluding property profits 123.5 140.5
Movement on working capital 135.1 5.5
Depreciation of property, plant and equipment 66.0 79.8
Amortisation and impairment of internally-generated intangibles 3.7 3.6
Share-based payments 7.7 11.7
Interest on lease liabilities (29.7) (29.6)
Other net interest paid (20.2) (19.5)
Income tax paid (21.7) (20.9)
Adjusted operating cash flow 264.4 171.1
Capital expenditure excluding freehold purchases (60.2) (63.8)
Disposal of plant and equipment 0.7 1.2
Free cash flow 204.9 108.5
18. Return on capital employed
Group return on capital employed is calculated as follows:
£m 2025 2024
Opening net assets 1,974.1 2,040.3
Net pension surplus (87.7) (75.5)
Net debt 845.2 922.0
Opening capital employed 2,731.6 2,886.8
Closing net assets 1,776.3 1,974.1
Net pension surplus (88.6) (87.7)
Net debt 621.1 845.2
Closing capital employed 2,308.8 2,731.6
Average capital employed 2,520.2 2,809.2
Group return on capital employed is calculated as follows:
£m 2025 2024
Adjusted operating profit (note 7) 133.4 151.8
Average capital employed 2,520.2 2,809.2
Return on capital employed 5.3% 5.4%
19. Net debt to adjusted EBITDA
£m 2025 2024
Operating (loss) / profit (96.6) 2.3
Depreciation and amortisation 164.9 190.5
Adjusting items 222.2 139.1
Adjusted EBITDA 290.5 331.9
Net debt 621.1 845.2
Net debt to adjusted EBITDA 2.1x 2.5x
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