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TPK — Travis Perkins News Story

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UK's Travis Perkins reports fall in like-for-like sales amid construction slump

UK's Travis Perkins reports fall in like-for-like sales amid construction slump

- British building materials supplier Travis Perkins TPK.L on Thursday reported a 1.3% fall in like-for-like sales in the third quarter, as construction activity and consumer spending remain subdued amid geopolitical uncertainty.

  • Soaring mortgage rates along with rising construction costs and inflation have prolonged the downturn in construction activity, weighing on demand from tradespeople, a major customer base for the company

  • The firm, which operates the Toolstation UK brand, reported a 1.6% fall in third-quarter group revenue

  • The company noted a tougher comparison from discounts provided in the same quarter a year ago

  • Travis Perkins' stock is down 6.6% this year, despite receiving a temporary boost from the UK's 'Your First Home' scheme that is expected to lift new home construction

  • Under CEO Gavin Slark, it initiated a turnaround plan that includes raising prices to pass on cost increases due to the Middle East conflict

  • "Our ongoing cost discipline and trading approach are protecting profitability whilst we continue to identify and implement further operational efficiencies," Slark said


(Reporting by Simone Lobo in Bengaluru; Editing by Janane Venkatraman)

((Simone.Lobo@thomsonreuters.com, +919920570373))

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