REG - Travis Perkins PLC - Half-year Report
Tue 07:02
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RNS Number : 9248T Travis Perkins PLC 05 August 2025
5 August 2025
Travis Perkins plc, the UK's largest distributor of building materials,
announces 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/
Enquiries:
Travis Perkins FGS Global
Matt Worster Faeth Birch / Jenny Davey / James Gray
+44 (0) 7990 088548 +44 (0) 207 251 3801
matt.worster@travisperkins.co.uk TravisPerkins@fgsglobal.com
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 5th August 2025, 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.
* 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/
H1 2025 Performance
The Group delivered revenue of £2,300m, down (2.1)% versus prior year. The
decline in revenue was driven by the Merchanting segment with activity across
the majority of end markets remaining subdued. Toolstation delivered a robust
revenue performance with further market share gains as maturity benefits
continue to come through.
Adjusted operating profit of £63m was £(20)m, or (24)%, lower than the first
half of 2024. The following key factors impacted on operating profit during
the first half of the year:
● £(18)m decline in gross profit which was primarily driven by lower
trading volumes, greater promotional activity and one less trading day in the
Merchanting businesses.
● Overheads were in line with prior year as cost inflation and
increased employer national insurance contributions were mitigated by
proactive cost management
● Property profits were £(2)m lower than prior year.
Leadership and structures
Following the departure of Pete Redfern in March 2025, the Group has appointed
Gavin Slark as CEO with Gavin due to join the business on 1 Jan 2026. Gavin is
a highly experienced public company CEO with significant experience of the
building materials and merchanting industry having 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.
The Group has implemented a new operating structure for the Specialist
Merchant businesses - BSS, CCF, Keyline and TF Solutions - which now all
report into a Specialist Merchant Managing Director, sitting on the Group
Leadership Team, with Catherine Gibson appointed to the role. Managing
Directors have also now been appointed in all of the Specialist businesses.
In Toolstation UK, Lakhvir Sanghera has been appointed as Managing Director,
following the upcoming retirement of Angela Rushforth, while Richard Lavin has
taken up the role as Managing Director of Travis Perkins General Merchant.
Catherine, Lakhvir and Richard have extensive industry experience, having all
been with the Group for over a decade.
Balance sheet
The Group has made further strong progress on strengthening the balance sheet
during the first half, with overall net debt reducing by £135m and net debt
before leases reducing by £88m. Accordingly, despite the further reduction in
adjusted operating profit, leverage (net debt / adjusted EBITDA) has reduced
to 2.3x. Over the past 18 months management actions have unlocked over £250m
of capital to fund restructuring activity and reduce net debt by £212m. The
Group remains focused on returning leverage to its target range of 1.5 - 2.0x
as soon as is practically possible.
Dividend
The Board is recommending an interim dividend of 4.5 pence per share (2024:
interim dividend of 5.5 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 7
November 2025 to shareholders on the register as at close of business on 3
October 2025.
Outlook
Whilst the Group continues to make progress on actions to stabilise
performance, end market demand remains subdued and the timing of a recovery in
the UK construction sector is uncertain. Given this demand backdrop, the Group
expects to deliver a full year adjusted operating profit (including £8m of
property profits) broadly in line with current market expectations*
Technical guidance
The Group's technical guidance for 2025 is as follows:
● Expected ETR of around 30% on UK generated profits
● Base capital expenditure of around £80m
● Property profits of £8m
Adjusting items
There were no material adjusting items in the period. In H1 2024 there were
£30m of adjusting items primarily related to Group restructuring, supply
chain consolidation and the closure of 39 standalone Benchmarx branches.
* 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/
Segmental performance
Merchanting
H1 2025 H1 2024 Change
Revenue £1,882m £1,942m (3.1)%
Adjusted operating profit £63m £91m (30.8)%
Adjusted operating margin 3.4% 4.7% (130)bps
ROCE (12 month rolling) 6% 8% (2)ppt
Branch network* 724 724 -
* 2024 branch network figures for comparison are taken at 31 December 2024
Note - all figures above exclude property profits
Trading conditions in the majority of the Merchanting segment's end markets
remained subdued which, allied to a loss of market share in the first quarter
and a (1.0)% impact from one fewer trading day, saw revenue down by (3.1)% in
the first half. Overall pricing was broadly flat as modest manufacturer
increases were offset by a competitive trading environment.
Management implemented a series of actions seeking to reverse the loss of
market share, including targeted promotions and incentives and the addition of
resources back into customer-facing roles to improve service levels. These
actions have improved the trading performance with Q2 like-for-like revenue
down (1.0)% compared to a decline of (3.2)% in Q1. This continues a trend of
improving performance in the Merchanting businesses post significant
leadership and technology changes as shown below:
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)%
Adjusted operating profit reduced by (31)% to £63m with adjusted operating
margin decreasing by (130)bps. Whilst costs in the Merchanting businesses were
well controlled, profitability was impacted by further volume decline and
pressure on gross margin in a highly competitive environment.
Merchanting sales through the yard (around 80% of revenue) returned to growth
of 2%** in Q2 (flat** for the first half overall) while direct-to-customer
sales (around 20% of revenue) were in notable decline, down (11)%** in the
first half. The challenges with direct sales arose after the implementation of
Oracle in 2024. Significant progress has been made through an increased focus
on training and a resolution of the invoice backlog which has eased the burden
on front-line colleagues. Further technology fixes are now being deployed to
enhance direct sales functionality and provide the same level of flexibility
in service that existed prior to Oracle.
** Trading day adjusted
There was minimal change to the Merchanting network in the first half,
reflecting disciplined capital investment in a challenging market environment,
but also a clear focus on protecting operational capacity and capability to
ensure that the business is able to fully benefit from a future market
recovery.
In May, the Group sold its specialist floor kit, i-joist and staircase
manufacturer Staircraft to Gait Consulting for provisional cash consideration
of £24m. This sale was part of a continued focus on simplifying the Group's
operating model.
Toolstation
H1 2025 H1 2024 (re-presented) Change
Revenue £418m £407m 2.7%
Like-for-like growth 2.9% 0.6%
Adjusted operating profit - UK £21m £14m 50.0%
Adjusted operating profit - Europe £(6)m £(7)m 14.3%
Adjusted operating profit - Total £15m £7m 114.3%
Adjusted operating margin 3.6% 1.7% 190bps
ROCE (12-month rolling) 5% 2% 3ppt
Branch network (UK)* 591 587 4
Branch network (Europe)* 109 110 (1)
* 2024 branch network figures for comparison are taken at 31 December 2024
Note - all figures above exclude property profits and are for continuing
businesses only. The Toolstation France business is treated as a discontinued
operation.
UK
Toolstation UK delivered another strong performance in the first half with
further market share gains as sales were up 5%**, driven by modest price
inflation and good volume growth. Network expansion continues at a steady pace
with the network increasing by four stores in the first half and expected to
increase by around ten stores for the full year.
UK adjusted operating profit grew by 50% to £21m, with operating margin
expanding by 180bps to 5.7% driven by further improvements in the gross margin
mix and supply chain efficiencies.
Benelux
Toolstation Benelux generated losses of £(6)m in the first half, a slight
improvement on the prior year. Whilst store generated sales (on a
like-for-like basis) were up 6% and overheads well controlled, planned work to
significantly upgrade the Benelux customer website during the first half
caused significant disruption to trading with online sales down by (22)%
during the period. With the enhanced website now fully operational performance
is expected to improve in the second half, albeit the Dutch and Belgian
markets remain similarly subdued to the UK.
** Trading day adjusted
Financial Performance
Revenue analysis
Pricing has stabilised in the Merchanting business after a prolonged period of
deflation but volumes remain subdued. There was one fewer trading day than in
the prior year.
Toolstation delivered good like-for-like volume growth as the business
continues to mature and enhance its customer proposition. The growth from new
stores in the UK was broadly offset by the closure of underperforming stores
in Benelux in the prior year.
Volume, price and mix analysis
Merchanting Toolstation Group
Price and mix (0.3)% 1.3% 0.0%
Like-for-like volume (1.8)% 1.6% (1.2)%
Like-for-like revenue growth / (decline) (2.1)% 2.9% (1.2)%
Network changes and acquisitions / disposals 0.0% 0.3% 0.0%
Trading days (1.0)% (0.5)% (0.9)%
Total revenue growth / (decline) (3.1)% 2.7% (2.1)%
Quarterly revenue analysis
Note that all information in the table below has been restated to remove the
impact of Toolstation France.
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)%
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%
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)%
Operating profit reconciliation
£m H1 2025 H1 2024 Change
(re-presented)
Merchanting 63 91 (30.8)%
Toolstation 15 7 114.3%
Property 1 3 (66.7)%
Unallocated costs (16) (18) 11.1%
Adjusted operating profit 63 83 (24.1)%
Amortisation of acquired intangible assets (5) (5)
Adjusting items 1 (30)
Operating profit 59 48
Note - For continuing businesses only. The Toolstation France business is
treated as a discontinued operation.
Property
The Group generated property profits of £1m in the first half of the year,
with £10m of cash proceeds (2024: £18m).
Finance charge
Net finance charges were in line with prior year (see note 6 for details).
Taxation
The tax charge before adjusting items was £13m (2024: £19m) giving an
adjusted effective tax rate (adjusted 'ETR') of 32.2% (standard rate: 25.0%,
2024 re-presented: 31.0%). The adjusted ETR rate is higher than the standard
rate due to the effect of expenses not deductible for tax purposes, the
largest item being unutilised overseas losses. The statutory tax charge for
the six months to 30 June 2025 was £11m (2024: £11m) giving an effective tax
rate of 29.1% (2024 re-presented: 43.0%).
Earnings per share
The Group reported a profit after tax from continuing operations of £26m
(2024: £16m), resulting in basic earnings per share of 12.5 pence (2024: 7.4
pence). Diluted basic earnings per share from continuing operations were 12.4
pence (2024: 7.3 pence).
Adjusted profit after tax was £28m (2024: £42m), resulting in adjusted
earnings per share of 13.3 pence (2024: 19.9 pence). Diluted adjusted earnings
per share were 13.2 pence (2024: 19.6 pence).
Cash flow and balance sheet
Free cash flow
£m H1 2025 H1 2024 (re-presented) Change
Group adjusted operating profit excluding property profits 62 80 (18)
Depreciation of PPE and other non-cash movements 40 49 (9)
Change in working capital 71 53 18
Net interest paid (excluding lease interest) (13) (14) 1
Interest on lease liabilities (15) (15) 0
Tax paid (17) (21) 4
Adjusted operating cash flow 128 132 (4)
Capital investment
Capex excluding freehold transactions (32) (29) (3)
Proceeds from disposals excluding freehold transactions - 1 (1)
Free cash flow before freehold transactions 96 104 (8)
Note - For continuing businesses only. The Toolstation France business is
treated as a discontinued operation.
Working capital decreased significantly in the first half due to a substantial
reduction in creditors. This was primarily due to the normalisation of
supplier payments arising from the cutover challenges of moving onto Oracle in
the prior year. Debtors were broadly flat as good progress on collecting
overdue debt, also resulting from the Oracle implementation, was offset by a
typical seasonal build of the debtor book. Stock management remains
disciplined with holdings in line with year-end.
Capital investment
£m H1 2025 H1 2024 (re-presented)
Strategic 15 10
Maintenance 16 15
IT 1 4
Base capital expenditure 32 29
Freehold property 13 10
Gross capital expenditure 45 39
Disposals (11) (18)
Net capital expenditure 34 21
Note - For continuing businesses only. The Toolstation France business is
treated as a discontinued operation.
Base capital expenditure was broadly in line with prior year as the business
continues to adopt a disciplined approach.
Reconciliation of free cash flow to change in cash and cash equivalents
£m H1 2025 H1 2024 (re-presented) Change
Free cash flow 96 104 (8)
Investments in freehold property (13) (10) (3)
Disposal proceeds from freehold transactions 10 18 (8)
Dividends paid (19) (12) (7)
Business disposal 24 - 24
Cash payments on adjusting items (2) (10) 8
Other (8) (8) -
Change in cash and cash equivalents 88 82 6
Note - For continuing businesses only. The Toolstation France business is
treated as a discontinued operation.
Cash and cash equivalents increased by £88m in the half, driven by working
capital improvements, disciplined capital allocation and £24m from the sale
of Staircraft in May. In both current and prior year, other items consist
primarily of cash payments related to the closure of Toolstation France (which
is classified as a discontinued operation).
Net debt and funding
30 Jun 2025 31 Dec 2024 Change Covenant
Net debt £710m £845m £135m
Net debt / adjusted EBITDA 2.3x 2.5x 0.2x <4.0x
Net debt before leases £103m £191m £88m
Net debt before leases / adjusted EBITDA 0.3x 0.6x 0.3x
Note - All covenant metrics measured post IFRS16. Leverage metrics are
calculated on a 12-month rolling basis.
Net debt has reduced by £135m from year-end, with net debt before leases
reducing by £88m due to the cash inflow shown on the previous page. Lease
commitments reduced by £47m in part due to the timing of renewals but also
due to the exit of Toolstation France properties and Staircraft's
manufacturing facilities.
Leverage reduced 0.2x compared to year-end despite a (9)% reduction in
12-month rolling EBITDA (see note 18b).
Funding
In March 2025 the Group issued £125m of US private placement notes with the
proceeds used to fund a tender offer to repurchase £125m of the Group's
guaranteed notes at par.
As at 30 June 2025, the Group's committed funding of £800m comprised:
● £125m guaranteed notes due February 2026, listed on the London
Stock Exchange
● £75m bilateral bank loan due August 2027
● A revolving credit facility of £375m, refinanced in November 2023
and maturing in November 2028
● £225m of US private placement notes, maturing in tranches between
2028 and 2035
As at 30 June 2025, the Group had undrawn committed facilities of £390m (31
December 2024: £390m) and deposited cash of £289m (31 December 2024:
£200m), giving overall liquidity headroom of £679m (31 December 2024:
£590m).
Principal risks and uncertainties
The uncertainty in the global and national external environment, both economic
and geopolitical, remains challenging and continues to impact on the Group's
risk landscape. The effectiveness of existing monitoring and mitigating
activities, along with the consideration of new approaches continues to be
reviewed to maintain the Group's resilience and support delivery of its
strategic objectives.
In their latest review of the principal risks and uncertainties facing the
Group, the Directors have considered internal and external factors that are
currently influencing the risk set and the extent to which these factors
change their assessment of the scale of the risk and the expected risk trend
for the remainder of the financial year. The key risks facing the Group and
the underlying drivers of these risks remain broadly consistent with those
described on pages 59 to 69 of the 2024 Annual Report & Accounts. Details
are provided for inherent risks relating to long-term market trends,
macroeconomic volatility, managing change, climate change & carbon
reduction, cyber threat & data security, supply chain resilience, health,
safety & wellbeing, legal compliance and critical asset failure.
The Group continues to actively manage, where possible, the challenges
presented by macroeconomic volatility, and maintains its view that the
inherent risk is high in light of heightened geopolitical tension, escalating
tariffs and trade policy friction and increased volatility in financial
markets. It is recognised that the potential impact and duration of wider
macroeconomic factors remains highly uncertain and this is expected to
continue throughout the remainder of 2025.
In relation to emerging risks, the Group continues to monitor risks across
significant areas such as technology, ESG and people, and the potential impact
on achievement of strategic objectives.
Condensed consolidated income statement
£m Notes Six months ended Six months ended Year ended
30 June 2025
30 June 2024
31 December 2024
(unaudited)
(unaudited)
(audited)
(re-presented(1))
Revenue 2 2,299.5 2,348.6 4,607.4
Cost of sales (1,692.8) (1,724.4) (3,403.7)
Gross profit 606.7 624.2 1,203.7
Charge for impairment losses for trade receivables (9.1) (6.6) (16.7)
Selling and distribution (400.6) (385.5) (779.2)
Administrative expenses - other (135.8) (153.4) (271.3)
Profit on disposal of properties 1.0 2.7 11.3
Other operating income 1.2 1.8 4.0
Adjusted operating profit 63.4 83.2 151.8
Administrative expenses - amortisation of acquired intangible assets (5.2) (5.2) (10.4)
Administrative expenses - adjusting items 3 1.0 (29.6) (139.1)
Operating profit 59.2 48.4 2.3
Finance income 6 7.5 5.1 11.1
Finance costs 6 (29.6) (26.9) (51.8)
Profit before tax 37.1 26.6 (38.4)
Tax 7 (10.7) (10.9) (2.2)
Profit / (loss) from continuing operations 26.4 15.7 (40.6)
Profit / (loss) from discontinuing operations - (11.0) (36.8)
Profit / (loss) for the year 26.4 4.7 (77.4)
Earnings per share
Basic earnings per share
- from continuing operations 10(a) 12.5p 7.4p (19.2)p
- total 10(a) 12.5p 2.2p (36.6)p
Diluted earnings per share
- from continuing operations 10(a) 12.4p 7.3p (19.2)p
- total 10(a) 12.4p 2.2p (36.6)p
Adjusted basic earnings per share 10(b) 13.3p 14.7p 36.6p
Total dividend declared per share 11 4.5p 5.5p 14.5p
(1) Figures for the period ended 30 June 2024 have been re-presented to
exclude the results of the Toolstation France business, which is now presented
as a discontinued operation.
All profit / (loss) is attributable to the owners of the Company.
Condensed consolidated statement of comprehensive income
£m Six months ended Six months ended Year ended
30 June 2025
30 June 2024
31 December
(unaudited)
(unaudited)
2024
(audited)
(re-presented)
Profit / (loss) for the period 26.4 4.7 (77.4)
Items that will not be reclassified subsequently to profit and loss:
Actuarial gains / (losses) on defined benefit pension schemes (note 8) 8.3 8.5 35.1
Income taxes relating to other comprehensive income (2.1) (2.6) (9.5)
Items that may be reclassified subsequently to profit and loss:
Foreign exchange differences on retranslation of foreign operations 2.4 (3.5) (2.3)
Fair value gains on cash flow hedges 2.0 1.1 0.4
Deferred tax on cash flow hedges (0.3) (0.3) (0.1)
Other comprehensive gain for the period net of tax 10.3 3.2 23.6
Total comprehensive income / (loss) for the period 36.7 7.9 (53.8)
Total comprehensive income / (loss) for the year attributable to the owners of
the Company arises from:
Continuing operations 36.7 19.2 (16.9)
Discontinued operations - (11.3) (36.9)
36.7 7.9 (53.8)
All other comprehensive income is attributable to the owners of the Company.
Condensed consolidated balance sheet
£m As at 30 June 2025 (unaudited) As at 30 June 2024 (unaudited) As at 31 December 2024 (audited)
ASSETS
Non-current assets
Goodwill 823.5 846.7 821.3
Other intangible assets 79.2 93.3 86.9
Property, plant and equipment 744.0 835.6 771.1
Right-of-use assets 520.9 556.0 545.4
Non-current prepayments 13.8 15.8 15.3
Deferred tax asset 18.5 17.2 17.5
Derivative financial instruments (note 15) 4.5 4.2 3.3
Retirement benefit asset (note 8) 127.3 111.9 116.9
Total non-current assets 2,331.7 2,480.7 2,377.7
Current assets
Inventories 646.4 669.7 648.6
Trade and other receivables 767.4 746.1 760.5
Tax assets 5.3 19.5 -
Cash and cash equivalents 319.3 213.6 244.4
Total current assets 1,738.4 1,648.9 1,653.5
Total assets 4,070.1 4,129.6 4,031.2
EQUITY AND LIABILITIES
Capital and reserves
Share capital 23.8 23.8 23.8
Share premium account 545.6 545.6 545.6
Cash flow hedge reserve 4.2 4.0 2.5
Merger reserve 326.5 326.5 326.5
Revaluation reserve 9.1 10.2 9.5
Own shares (2.8) (7.9) (7.2)
Foreign exchange reserve 8.5 4.9 6.1
Capital redemption reserve 1.4 1.4 1.4
Retained earnings 1,078.3 1,133.2 1,065.9
Total equity 1,994.6 2,041.7 1,974.1
Non-current liabilities
Interest-bearing loans and borrowings 296.7 446.6 421.8
Lease liabilities 525.4 540.2 560.1
Deferred tax liabilities 67.0 89.8 68.3
Long-term provisions 20.8 10.5 21.6
Total non-current liabilities 909.9 1,087.1 1,071.8
Current liabilities
Interest-bearing loans and borrowings (note 12) 125.0 - -
Lease liabilities 81.8 94.9 94.5
Overdraft - - 13.2
Trade and other payables 924.0 874.5 838.2
Short-term provisions 34.8 31.4 39.4
Total current liabilities 1,165.6 1,000.8 985.3
Total liabilities 2,075.5 2,087.9 2,057.1
Total equity and liabilities 4,070.1 4,129.6 4,031.2
The interim condensed financial statements of Travis Perkins plc, registered
number 824821, were approved by the Board of Directors on 5 August 2025 and
signed on its behalf by:
Geoff Drabble Duncan Cooper
Chair Chief Financial Officer
Condensed consolidated statement of changes in equity
£m Share capital Share premium Cash flow hedge reserve Merger reserve Revaluation reserve Capital redemption reserve Own shares Foreign exchange Retained earnings Total equity
At 1 January 2025 (audited) 23.8 545.6 2.5 326.5 9.5 1.4 (7.2) 6.1 1,065.9 1,974.1
Profit for the period - - - - - - - - 26.4 26.4
Other comprehensive income for the period - - 1.7 - - - - 2.4 6.2 10.3
Total comprehensive income for the period - - 1.7 - - - - 2.4 32.6 36.7
Dividends paid - - - - - - - - (19.1) (19.1)
Own shares movement - - - - - - 4.4 - (4.4) -
Equity-settled share-based payments - - - - - - - - 2.9 2.9
Adjustments in respect of revalued fixed assets - - - - (0.4) - - - 0.4 -
Tax on equity-settled share-based payments - - - - - - - - (0.1) (0.1)
Tax on revalued assets - - - - - - - - 0.1 0.1
At 30 June 2025 (unaudited) 23.8 545.6 4.2 326.5 9.1 1.4 (2.8) 8.5 1,078.3 1,994.6
£m Share capital Share premium Cash flow hedge reserve Merger reserve Revaluation reserve Capital redemption reserve Own shares Foreign exchange Retained earnings Total equity
At 1 January 2024 (audited) 23.8 545.6 2.9 326.5 10.8 1.4 (14.1) 8.4 1,135.0 2,040.3
Loss for the period - - - - - - - - 4.7 4.7
Other comprehensive income for the period - - 1.1 - - - - (3.5) 5.6 3.2
Total comprehensive income for the period - - 1.1 - - - - (3.5) 10.3 7.9
Dividends paid - - - - - - - - (11.6) (11.6)
Own shares movement - - - - - - 6.1 - (6.1) -
Sale of own shares - - - - - - 0.1 - - 0.1
Equity-settled share-based payments - - - - - - - - 5.9 5.9
Exercise of options over non-controlling interest - - - - - - - - (1.1) (1.1)
Adjustments in respect of revalued fixed assets - - - - (0.6) - - - 0.6 -
Tax on equity-settled share-based payments - - - - - - - - 0.1 0.1
Tax on revalued assets - - - - - - - - 0.1 0.1
At 30 June 2024 (unaudited) 23.8 545.6 4.0 326.5 10.2 1.4 (7.9) 4.9 1,133.2 2,041.7
Condensed consolidated statement of changes in equity (continued)
£m Share capital Share premium Cash flow hedge reserve Merger reserve Revaluation reserve Own shares Foreign exchange Capital redemption reserve Retained earnings Total equity
At 1 January 2024 (audited) 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 - - - - (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 - - - - - - - - 11.7 11.7
Reclassification - - (0.7) - - - - - 0.7 -
At 31 December 2024 (audited) 23.8 545.6 2.5 326.5 9.5 (7.2) 6.1 1.4 1,065.9 1,974.1
Condensed consolidated cash flow statement
£m Six months ended Six months ended Year ended 31 December 2024
30 June 2025 30 June 2024 (audited)
(unaudited) (unaudited)
(re-presented)
Cash flows from operating activities
Operating profit 59.2 47.7 2.3
Adjustments for:
Depreciation of property, plant and equipment 34.2 40.1 79.8
Depreciation of right-of-use assets 44.7 47.1 96.8
Amortisation of other intangibles 2.0 2.6 3.6
Amortisation of acquisition-related intangibles 5.2 5.2 10.4
Share-based payments 2.9 5.9 11.7
Gains on disposal of property, plant and equipment (1.0) (2.7) (11.3)
Purchase of tool hire assets (5.9) (3.9) (3.8)
(Increase) / decrease in inventories (3.9) 55.7 63.6
Increase in receivables (8.8) (57.3) (76.1)
Increase in payables 83.6 54.0 18.0
Adjusting item payments (greater than) / less than the charge (2.0) 19.4 119.2
Cash generated from operations 210.2 213.8 314.2
Interest paid and debt arrangement fees (15.9) (16.0) (25.3)
Interest on lease liabilities (14.9) (14.6) (29.6)
Income taxes paid (16.7) (20.8) (20.9)
Net cash inflow from continuing operating activities 162.7 162.4 238.4
Net cash outflow from discontinued operating activities (5.8) (7.3) (15.9)
Net cash inflow from operating activities 156.9 155.1 222.5
Cash flows from investing activities
Interest received 3.1 2.4 5.8
Proceeds on disposal of property, plant and equipment 9.9 18.5 63.0
Purchase and development of freehold land and buildings (13.2) (10.0) (12.3)
Purchase of property, plant and equipment (25.2) (22.4) (55.8)
Purchase and development of software - (2.9) (4.1)
Proceeds on sale of subsidiary 23.7 - -
Net cash outflow from continuing investing activities (1.7) (14.4) (3.4)
Net cash inflow from discontinued investing activities - 0.1 -
Net cash outflow from investing activities (1.7) (14.3) (3.4)
Cash flows from financing activities
Sale of own shares - 0.1 0.1
Repayment of lease liabilities (45.9) (45.8) (93.8)
Dividends paid (19.1) (11.6) (23.2)
Debt arrangement fees (0.6) - -
Proceeds from borrowings 125.1 - -
Repayment of bonds (123.7) - -
Net cash outflow from continuing financing activities (64.2) (57.3) (116.9)
Net cash outflow from discontinued financing activities (2.9) (1.4) (2.5)
Net cash outflow from financing activities (67.1) (58.7) (119.4)
Net increase / (decrease) in cash and cash equivalents 88.1 82.1 99.7
Cash and cash equivalents at the beginning of the period 231.2 131.5 131.5
Cash and cash equivalents at the end of the period 319.3 213.6 231.2
Notes to the interim financial statements
1. General information and accounting policies
The interim financial statements have been prepared on the historical cost
basis, except that certain financial instruments including derivative
instruments and plan assets of defined benefit pension schemes are stated at
their fair value. The condensed interim financial statements include the
accounts of the Company and all its subsidiaries ("the Group").
Basis of preparation
The financial information for the six months ended 30 June 2025 and 30 June
2024 is unaudited. The June 2025 information has been reviewed by Deloitte
LLP, the Group's auditor, and a copy of their review report appears on pages
35 and 36 of this interim report. The June 2024 information was reviewed by
KPMG LLP.
The financial information for the year ended 31 December 2024 does not
constitute statutory accounts as defined in section 435 of the Companies Act
2006. A copy of the statutory accounts for the year ended 31 December 2024, as
prepared in accordance with UK-adopted international accounting standards, has
been delivered to the Registrar of Companies. The auditor's, KPMG LLP, report
on those accounts was not qualified, did not include a reference to any
matters to which the auditor drew attention by way of emphasis without
qualifying the report and did not contain statements under section 498(2) or
(3) of the Companies Act 2006.
The unaudited interim financial statements for the six months ended 30 June
2025 have been prepared in accordance with IAS 34 - Interim Financial
Reporting, as adopted for use in the UK, and have been prepared on the basis
of IFRS.
The annual financial statements of the Group are prepared in accordance with
UK-adopted international accounting standards. As required by the Disclosure
and Transparency Rules of the Financial Conduct Authority, the condensed set
of financial statements has been prepared applying the accounting policies and
presentation that were applied in the preparation of the Company's published
consolidated financial statements for the year ended 31 December 2024. The
2024 full-year financial statements are available on the Travis Perkins
website (www.travisperkinsplc.co (http://www.travisperkinsplc.com) .uk).
The Directors are currently of the opinion that the Group's forecasts and
projections show that the Group should be able to operate within its current
facilities and comply with its banking covenants. The Group is however exposed
to a number of significant risks and uncertainties, which could affect the
Group's ability to meet management's projections.
The Directors believe that the Group has the flexibility to react to changing
market conditions and is adequately placed to manage its business risks
successfully. The Group has undertaken a detailed going concern assessment,
reviewing its current and projected financial performance and position,
including current assets and liabilities, debt maturity profile including a
modelled repayment of the £125m bond due in February 2026, future commitments
and forecast cash flows. The downside scenarios tested, outlining the impact
of severe but plausible adverse scenarios based on a severe recession and
housing market weakness, show that there is sufficient headroom for liquidity
and covenant compliance purposes for at least the next 12 months from the date
of approval of these financial statements. For this reason the interim
financial statements have been prepared on a going concern basis.
Critical accounting judgements and key sources of estimation uncertainty
The critical accounting judgements and key sources of estimation uncertainty
for the period ended 30 June 2025 are listed below. They are aligned to those
disclosed in the Annual Report and Accounts for year ended 31 December 2024,
except that the classification of the Toolstation France business, which
closed in 2024, as a discontinued operation is no longer considered to be a
key judgement:
● Pension liability assumptions
● Impairment reviews for goodwill and for branch assets
● Deferred tax asset recognition in Toolstation Netherlands
Those listed above are Key sources of estimation uncertainty for the Group.
Notes to the interim financial statements
1. General information and accounting policies (continued)
New and amended standards adopted by the Group
There are no new or amended standards applicable for the current reporting
period, except for the amendment to IAS 21 - Lack of Exchangeability. The
impact of this amendment is not material to the Group's financial reporting.
2. Revenue
£m Six months ended 30 June 2025 Six months ended 30 June 2024 Year ended 31 December 2024
(re-presented)
Sale of goods 2,219.3 2,263.8 4,439.9
Sale of services 80.2 84.8 167.5
2,299.5 2,348.6 4,607.4
3. Adjusting items
£m Six months ended 30 June 2025 Six months ended 30 June 2024 Year ended 31 December 2024
(re-presented)
Adjusting items
Restructuring (3.2) 23.9 37.0
Staircraft impairment and disposal 2.2 - 32.7
Branch impairments - - 62.7
Benchmarx branch closures - 5.7 6.7
Net adjusting (credit) / charge (1.0) 29.6 139.1
Adjusting items in the six-month period ended 30 June 2025 represent
adjustments to amounts previously recognised as adjusting items, the loss on
disposal of Staircraft and the underutilisation of redundancy provisions and
gains on the early exit of leases associated with Toolstation France.
In 2024 the Group concluded a major restructuring of its support functions and
supply chain, resulting in a charge of £37.0m. Impairment charges of £62.7m
in respect of 209 Merchanting branches and £32.7m in respect of the
Staircraft business were recognised. Closure costs of £6.7m were recognised
in respect of the closure of 39 standalone Benchmarx branches.
4. 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.
Segment result represents the result of each segment without allocation of
certain central costs, finance costs and tax. Adjusted segment result is the
result of each segment before adjusting items and property profits.
Unallocated segment assets and liabilities comprise financial instruments,
current and deferred tax, cash, borrowings and pension scheme assets and
liabilities.
Notes to the interim financial statements
4. Business segments (continued)
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
a) Segment results
Six months ended 30 June 2025
£m Merchanting Toolstation Unallocated Consolidated
Revenue 1,881.5 418.0 - 2,299.5
Operating profit 60.2 15.3 (16.3) 59.2
Amortisation of acquired intangible assets 3.8 1.4 - 5.2
Adjusting items 0.7 (1.7) - (1.0)
Less property profits (1.0) - - (1.0)
Adjusted segment result 63.7 15.0 (16.3) 62.4
Adjusted segment margin 3.4% 3.6% - 2.7%
Average capital employed 2,052.4 540.5 124.2 2,717.1
There has been no change in the basis of segmentation or in the basis of
measurement of segment profit or loss in the period.
Six months ended 30 June 2024 (re-presented)
£m Merchanting Toolstation Unallocated Consolidated
Revenue 1,941.6 407.0 - 2,348.6
Operating profit 69.2 (3.8) (17.7) 47.7
Amortisation of acquired intangible assets 3.8 1.4 - 5.2
Adjusting items 20.9 9.4 - 30.3
Less property profits (2.7) - - (2.7)
Adjusted segment result 91.2 7.0 (17.7) 80.5
Adjusted segment margin 4.7% 1.7% - 3.4%
Average capital employed 2,148.3 601.0 105.4 2,854.7
Year ended 31 December 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 acquired intangible assets 7.6 2.8 - 10.4
Adjusting items 132.6 6.5 - 139.1
Less property profits (11.3) - - (11.3)
Adjusted segment result 148.4 21.3 (29.2) 140.5
Adjusted segment margin 3.9% 2.6% - 3.0%
Average capital employed 2,232.5 564.3 12.4 2,809.2
Notes to the interim financial statements
4. Business segments (continued)
b) Segment assets and liabilities
£m Six months ended 30 June 2025
Segment assets
Merchanting 2,874.1
Toolstation 683.1
Unallocated 512.7
Total assets 4,069.9
Segment liabilities
Merchanting (1,256.6)
Toolstation (366.7)
Unallocated (452.1)
Total liabilities (2,075.4)
5. Seasonality
The Group's trading operations when assessed on a half yearly basis are mainly
unaffected by seasonal factors. In 2024 the period to 30 June accounted for
51.0% of the Group's annual revenue.
Notes to the interim financial statements
6. Net finance costs
Six months ended 30 June 2025 Six months ended 30 June 2024 Year ended
31 December
£m (re-presented)
2024
Finance income
Items in the nature of interest:
Interest receivable 3.0 2.4 6.0
Other finance income and remeasurement:
Pension scheme interest receivable 3.2 2.1 4.3
Gain on the repurchase of debt 1.3 - -
Net gain on remeasurement of derivatives at fair value - 0.6 0.8
7.5 5.1 11.1
Finance costs
Items in the nature of interest:
Interest on lease liabilities - property (13.1) (13.5) (26.5)
Interest on lease liabilities - equipment (1.8) (1.1) (3.1)
Interest on bonds and other loans (11.6) (9.6) (17.1)
Interest on bank facilities and overdrafts (0.9) (1.1) (2.0)
Pension SPV and other interest - (0.6) (1.8)
Other finance costs:
Amortisation of issue costs of bank loans (0.9) (0.6) (1.3)
Remeasurement:
Net loss on remeasurement of foreign exchange - (0.4) -
Net loss on remeasurement of derivatives at fair value (1.3) - -
(29.6) (26.9) (51.8)
Net finance costs (22.1) (21.8) (40.7)
The Group's interest cover covenants are calculated using those items of
finance income and finance cost that are in the nature of interest, including
interest on lease liabilities. In the first half of 2025 these were £24.2m
(2024 H1: £23.8m, 2024 FY: £44.5m).
Notes to the interim financial statements
7. Tax
Six months ended Six months ended Year ended
£m 30 June 2025 30 June 2024 31 December 2024
Current tax
- current year 10.9 15.9 34.9
- prior year - - 0.6
Total current tax 10.9 15.9 35.5
Deferred tax
- current year (0.2) (5.0) (32.8)
- prior year - - (0.5)
Total deferred tax (0.2) (5.0) (33.3)
Total tax charge 10.7 10.9 2.2
Tax for the six-month period is charged at 29.1% (six months ended 30 June
2024 re-presented: 43.0%; year ended 31 December 2024: 5.7%), representing the
best estimate of the average annual effective tax rate expected for the full
year, applied to the pre-tax income of the six-month period.
For accounting periods beginning after 31 December 2024 the Group is required
to comply with the OECD Pillar Two model rules which require the Group to pay
a minimum level of tax on income arising in the jurisdictions in which it
operates. The Group's current analysis of these rules and their application in
jurisdictions relevant to the Group indicate that no material additional tax
liability will arise. The Group has applied the mandatory temporary exception
to the accounting for deferred taxes arising from the implementation of the
Pillar Two model rules.
A deferred tax asset of £18.5m (2024: £17.2m) has been recognised in respect
of trading losses in the Toolstation Netherlands business. The Group considers
it is appropriate to recognise a deferred tax asset on unused trading losses
in Toolstation Netherlands as forecasts, based on the existing Netherlands
store network and the store maturity profile of Toolstation stores in the UK
and the Netherlands, indicate that it is probable that the business will be
able to fully utilise these losses against future profits within a measurable
time frame. Recognition of the deferred tax asset relating to the trading
losses in the Toolstation Netherlands business is a judgemental area that is
sensitive to changes to the business. The continued recognition will therefore
be reviewed on a regular basis to ensure that it remains appropriate to do so.
Notes to the interim financial statements
8. Retirement benefit obligations
(a) Defined benefit pension schemes
The Group has a number of historical defined benefit pension schemes, all of
which are closed to new members and future accruals. The Group operates four
final salary schemes being The Travis Perkins Pensions and Dependants' Benefit
Scheme ("the TP DB scheme"), the BSS Defined Benefit Scheme ("the BSS DB
Scheme"), the immaterial Platinum pension scheme and the immaterial BSS
Ireland Defined Benefit Scheme.
(b) Balance sheet position and movements during the year
£m Six months ended 30 June 2025 Six months ended 30 June 2024 Year ended
31 December 2024
At 1 January gross pension asset 116.9 100.6 100.6
Amounts recognised in income:
Current service costs and administration expenses (0.9) (1.5) (3.1)
Net interest income 3.2 2.1 4.5
Other movements:
Contributions from sponsoring companies - 0.1 0.4
Foreign exchange (0.2) - (0.1)
Withdrawal of assets - - (23.2)
Balance sheet reclassifications - 2.1 2.7
Amounts recognised in other comprehensive income:
Return on plan assets (excluding amounts in net interest) (11.9) (56.6) (98.4)
Actuarial loss arising from changes in demographic assumptions - - (4.7)
Actuarial gain arising from changes in financial assumptions 20.2 65.1 100.4
Actuarial gain arising from experience adjustments - - 37.8
Gross pension asset 127.3 111.9 116.9
Deferred tax (31.9) (27.8) (29.2)
Net pension asset 95.4 84.1 87.7
Notes to the interim financial statements
8. Retirement benefit obligations (continued)
In June 2023, the High Court handed down a decision in the case of Virgin
Media Limited v NTL Pension Trustees II Limited and others relating to the
validity of certain historical pension changes due to the lack of actuarial
confirmation required by law. In July 2024, the Court of Appeal dismissed the
appeal brought by Virgin Media Ltd against aspects of the June 2023 decision.
The conclusions reached by the court in this case may have implications for
other UK defined benefit plans. The Company and pension trustees are currently
considering the implications of the case for the TP DB Scheme and the BSS DB
scheme. The defined benefit obligation has been calculated on the basis of the
pension benefits currently being administered, and at this stage the directors
do not consider it necessary to make any adjustments as a result of the Virgin
Media case.
9. Share capital
Allotted
No. £m
Ordinary shares:
At 30 June 2024, 31 December 2024 and 30 June 2025 212,509,334 23.8
10. Earnings per share
a) Basic and diluted earnings per share
Six months ended 30 June 2025 Six months ended 30 June 2024 Year ended
(re-presented) 31 December 2024
Profit / (loss) attributable to the owners of the parent (£m)
- from continuing operations 26.4 15.7 (40.6)
- from discontinued operations - (11.0) (36.8)
Weighted average number of shares in issue 211,529,410 210,955,879 211,106,493
Dilutive effect of share options 1,365,411 3,434,047 3,794,915
Weighted average number of shares for diluted earnings per share 212,894,821 214,389,926 214,901,408
Earnings / (loss) per share
- from continuing operations 12.5p 7.4p (19.2)p
- from discontinued operations - (5.2)p (17.4)p
- total 12.5p 2.2p (36.6)p
Diluted earnings / (loss) per share
- from continuing operations 12.4p 7.3p (19.2)p
- from discontinued operations - (5.1)p (17.4)p
- total 12.4p 2.2p (36.6)p
10. Earnings per share (continued)
b) Adjusted earnings per share
Adjusted earnings per share are calculated by excluding the effects of the
amortisation of acquired intangible assets, adjusting items and discontinued
operations from earnings.
£m Six months ended 30 June 2025 Six months ended 30 June 2024 Year ended
31 December 2024
(re-presented)
Profit / (loss) for the year 26.4 4.7 (77.4)
Adjusting items (1.0) 29.6 139.1
Amortisation of acquired intangible assets 5.2 5.2 10.4
Tax on amortisation of acquired intangible assets (1.3) (1.3) (2.6)
Tax on adjusting items (1.2) (7.2) (29.0)
Loss from discontinued operations - 11.0 36.8
Earnings for adjusted earnings per share 28.1 42.0 77.3
Adjusted earnings per share 13.3p 19.9p 36.6p
Adjusted diluted earnings per share 13.2p 19.6p 36.6p
11. Dividends
Distributions to equity shareholders of £19.1m have been recognised in the
financial statements in the period (2024: £11.6m). An interim dividend of
4.5p is proposed in respect of the year ending 31 December 2025. It will be
paid on 7 November 2025 to shareholders on the register at the close of
business on 3 October 2025. The shares will be quoted ex-dividend on 2 October
2025.
The Company operates a Dividend Reinvestment Plan, elections for which must be
received by the Company's registrar by 5.30pm on 17 October 2025.
12. Borrowings
At the period end, the Group had the following borrowing facilities available:
30 June 30 June 31 December
2025
2024
2024
£m
Drawn facilities:
Sterling bond (due February 2026) 125.0 250.0 250.0
Senior unsecured notes 2025 124.7 - -
Senior unsecured notes 2023 100.0 100.0 100.0
Term loan 75.0 75.0 75.0
424.7 425.0 425.0
Undrawn facilities:
5-year committed revolving credit facility 375.0 375.0 375.0
Bank overdraft 15.0 15.0 15.0
390.0 390.0 390.0
The drawn facilities balances do not include finance charges netted off debt,
which amounted to £3.0m as at 30 June 2025 (31 December 2024: £3.2m, 30 June
2024: £3.8m).
Notes to the interim financial statements
12. Borrowings (continued)
On 10 April 2025, the Group repurchased £125m of the £250m sterling bond due
in February 2026 at a price of 98.964p per cent, leaving a principal amount
outstanding of £125m. As part of the refinancing of the bond, on 13 March
2025 the Group issued £125m of US private placement notes with tenors of 3
years to 10 years and yields of 6.1% - 6.7% to a group of six investors with
maturities between 2028 and 2035 at investment grade yields. These notes are
subject to the same leverage and interest cover covenants as the Group's term
loan, other senior unsecured notes and committed revolving credit facility.
The overdraft balance of £13.2m on 31 December 2024, which was presented as
part of current liabilities, formed part of the Group's notional cash pool and
its aggregate cash and cash equivalents position of £231.2m. The Group's
£15.0m overdraft facility and the Group's £375.0m revolving credit facility
remained undrawn.
Cash and cash equivalents (which are presented as a single class of assets on
the Condensed Consolidated Balance Sheet) comprise cash at bank and other
short-term highly liquid investments with a maturity of three months or less
that are held for the purpose of meeting short-term cash commitments rather
than for investment purposes.
13. Net debt
Net debt is defined as the sum of current and non-current debt, less cash and
cash equivalents.
£m Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
Net debt at 1 January 845.2 922.0 922.0
Lease-related movements:
Lease additions and disposals 14.7 73.9 143.5
Sale of business (16.3) - -
Lease repayments (60.8) (60.4) (123.4)
Discount unwind on lease liability 14.9 14.6 29.6
Other net debt movements:
Other cash inflow (76.2) (68.4) (82.4)
Financing cash flows including net interest (12.0) (13.6) (19.5)
Loan settlement - - (24.6)
Net debt at 30 June / 31 December 709.5 868.1 845.2
Notes to the interim financial statements
14. Financial risk management
The overall aim of the Group's financial risk management policies is to
minimise potential adverse effects on financial performance and net assets.
The Group manages the principal financial and treasury risks within a
framework of policies and operating parameters reviewed and approved annually
by the Board of Directors. The Group does not enter into speculative
transactions.
Derivatives
During 2022 the Group obtained a 5-year term loan facility for £75m and at
the same time entered into an equal interest rate swap arrangement to hedge
the full variable component of the interest rate for the life of the
instrument.
The £125m of US private placement notes issued in March 2025 included a
dollar tranche of $40m on a 3-year term. The Group entered into a currency
swap to mitigate the risk arising from movements in exchange rate.
The risk management objective is to hedge against the volatility of cash flows
due to the variable interest rate and foreign exchange rate elements of the
loan facilities. The swaps are derivatives measured at fair value and are
designated in the hedging relationship in its entirety, therefore the hedging
instruments are eligible for hedge accounting.
The Group's hedging reserve relates to the combined hedge instruments:
£m Six months ended Six months ended Year ended
30 June 2025
30 June 2024
31 December 2024
At 1 January 2.5 2.2 2.2
Change in fair value of hedging instrument recognised in OCI 2.0 1.1 0.4
Deferred tax recognised in OCI (0.3) (0.3) (0.1)
At 30 June / 31 December 4.2 3.0 2.5
Interest rate swaps currently in place cover 100% of the loan principal
outstanding. The fixed interest rate of the swap is 2.673%. The interest rate
of the term loan consists of a variable element based on the Sterling
Overnight Index Average ("SONIA") and a margin between 1.8% and 2.4%. The swap
contracts require settlement of the net interest receivable or payable every 6
months and coincides with the dates on which payment is due on the underlying
term loan.
The effects of the interest rate swaps of the Group's financial position and
performance are as follows:
£m Six months ended Six months ended Year ended
30 June 2025
30 June 2024
31 December 2024
Carrying amount (non-current assets) 1.9 4.0 3.3
Notional amount 75.0 75.0 75.0
Maturity date 15 August 2027 15 August 2027 15 August 2027
Hedge ratio 1:1 1:1 1:1
Change in fair value of hedging instruments (1.4) 1.1 0.4
Weighted average hedged rate for the year 4.4% 5.2% 5.1%
Currency swaps currently in place cover 100% of the principal outstanding. The
Group swapped the USD 40m tranche of its 2025 H1 debt issuance for GBP 32m at
the prevailing market rate on a term equal to the principal term. At each
semi-annual interest date, interest at 6.07% is received in USD and interest
of 6.06% is paid in GBP. The semi-annual interest dates on the swaps coincide
with the dates on which interest payments are due on the underlying facility.
Notes to the interim financial statements
14. Financial risk management (continued)
The effects of the exchange rate swaps on the Group's financial position and
performance are as follows:
£m Six months ended
30 June 2025
Carrying amount (non-current assets) 2.7
Notional amount ($) 40.0
Maturity date 13 March 2028
Hedge ratio 1:1
Change in fair value of hedging instruments 2.7
Weighted average hedged rate for the year 1.3
The following amounts were recognised in the Group's profit and loss:
£m Six months Six months ended Year ended
ended
30 June 2024
31 December 2024
30 June 2025
Net (loss) / gain on foreign currency forwards not qualifying as hedges (1.3) 0.6 0.8
included in other gains / (losses)
15. Financial instruments
The fair values of financial assets and financial liabilities are determined
as follows:
● Foreign currency forward contracts are measured using quoted
forward exchange rates.
● Interest rate swaps are measured at the present value of future
cash flows, estimated and discounted based on the applicable yield curves
derived from quoted interest rates.
The following table provides an analysis of financial instruments that are
measured subsequent to initial recognition at fair value, grouped into levels
1 to 3 based on the degree to which the fair value is observable.
There were no transfers between levels during the year. There are no
non-recurring fair value measurements.
Notes to the interim financial statements
15. Financial instruments (continued)
£m 30 June 2025 30 June 2024 31 December 2024
Included in non-current assets
Level 2 - Interest rate swap and currency swaps 4.5 4.0 3.3
Included in current assets
Level 2 - Foreign currency forward contracts at fair value through profit and - 0.2 0.5
loss
4.5 4.2 3.8
Included in current liabilities
Level 2 - Foreign currency forward contracts at fair value through profit and 0.9 - -
loss
0.9 - -
The Group also has a number of financial instruments which are not measured at
fair value in the balance sheet. For the majority of these instruments, the
fair values are approximately their carrying amounts.
16. Related party transactions
The Group has related party relationships with its subsidiaries and with its
Directors. Transactions between Group companies, which are related parties,
have been eliminated on consolidation and are not disclosed in this note.
There have been no related party transactions with Directors other than in
respect of remuneration.
17. Disposal of business
The Staircraft business was sold on 30 April 2025 for provisional cash
consideration of £23.7m. As this business did not represent a separate major
line of business or geographical area of operations, it has not been presented
as a discontinued operation in the income statement. A loss has been
recognised on the sale of the business of £0.8m. The revenue of £24.9m and
adjusted operating profit of £0.5m in the period to 30 April 2025 are
presented in the Group's financial statements as part of the Merchanting
segment.
Notes to the interim financial statements
18. Non-statutory information
Alternative performance measures ("APMs") are used to describe the Group's
performance. These are not recognised under IFRS or other generally accepted
accounting principles. The Board focuses on these measures when assessing
ongoing trading and they facilitate meaningful year-on-year comparisons and
hence provide useful information to shareholders. APMs are defined in this
note and reconciled to the closest GAAP measure.
a) Adjusted operating profit
Adjusted operating profit is calculated by excluding the effects of
amortisation of acquired intangible assets and adjusting items from operating
profit.
£m Six months ended Six months ended Year ended
30 June 2025
30 June 2024
31 December 2024
(re-presented)
Operating profit 59.2 47.7 2.3
Amortisation of acquired intangible assets 5.2 5.2 10.4
Adjusting items (1.0) 30.3 139.1
Adjusted operating profit 63.4 83.2 151.8
b) Net debt to adjusted EBITDA (rolling 12 months)
Net debt to adjusted EBITDA is defined as the ratio of net debt (note 13) to
earnings before interest, tax, depreciation, amortisation and adjusting items
("adjusted EBITDA") and is used in one of the Group's debt covenants.
£m 30 June 2025 30 June 2024 31 December 2024
Operating profit 13.1 40.7 2.3
Depreciation and amortisation 180.5 191.3 190.5
Adjusting items 108.5 92.2 139.1
Adjusted EBITDA 302.1 324.2 331.9
Net debt (note 13) 709.5 868.1 845.2
Net debt to adjusted EBITDA (rolling 12 months) 2.3x 2.7x 2.5x
In accordance with the Group's debt covenant definitions, the comparative
period ended 30 June 2024 has not been re-presented for this APM to exclude
the result of the Toolstation France business.
Notes to the interim financial statements
18. Non-statutory information (continued)
c) Free cash flow
Free cash flow is defined as net cash flow before dividends, freehold property
purchases and disposals, pension deficit repair contributions, adjusting and
discontinued cash flows and the issuance and repayment of debt.
Six months ended Six months ended Year ended
30 June 2025
30 June 2024
31 December 2024
£m
(re-presented)
Adjusted operating profit 63.4 83.2 151.8
Less: profit on disposal of properties (1.0) (2.7) (11.3)
Adjusted operating profit excluding property profit 62.4 80.5 140.5
Depreciation of property, plant and equipment 34.2 40.1 79.8
Amortisation of internally generated intangibles 2.0 2.6 3.6
Share-based payments 2.9 5.9 11.7
Movement on working capital 70.9 52.5 5.5
Other net interest paid (12.8) (13.6) (19.5)
Interest on lease liabilities (14.9) (14.6) (29.6)
Income tax paid (16.7) (20.8) (20.9)
Capital expenditure excluding freehold purchases (31.1) (29.2) (63.8)
Disposal of plant and equipment 0.2 0.6 1.2
Free cash flow 97.1 104.0 108.5
d) Capital ratios
i) Average capital employed (rolling 12 months)
£m 30 June 2025 30 June 2024 31 December 2024
Opening net assets 2,041.7 2,109.1 2,040.30
Net pension asset (84.1) (99.7) (75.5)
Net borrowings 868.1 874.1 922.0
Opening capital employed 2,825.7 2,883.5 2,886.8
Closing net assets 1,994.5 2,041.7 1,974.1
Net pension asset (95.4) (84.1) (87.7)
Net borrowings 709.5 868.1 845.2
Closing capital employed 2,608.7 2,825.7 2,731.6
Average capital employed 2,717.2 2,854.6 2,809.2
Notes to the interim financial statements
18. Non-statutory information (continued)
d) Capital ratios
ii) Return on capital employed
£m 30 June 2025 30 June 2024 31 December 2024
(re-presented)
Adjusted operating profit (rolling 12 months) 132.0 160.2 151.8
Average capital employed 2,717.2 2,854.6 2,809.2
Return on capital employed 4.9% 5.6% 5.4%
e) Like-for-like sales
£m Merchanting Toolstation Total
2024 H1 revenue 1,941.6 407.0 2,348.6
Network change (10.4) (4.5) (14.9)
Trading days (18.9) (2.1) (21.0)
2024 H1 like-for-like revenue 1,912.3 400.4 2,312.7
Like-for-like change (39.4) 11.4 (28.0)
2025 H1 revenue 1,881.5 418.0 2,299.5
Network change (8.6) (6.2) (14.8)
2025 H1 like-for-like revenue 1,872.9 411.8 2,284.7
Like-for-like revenue % (2.1)% 2.9% (1.2)%
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 sales is for the equivalent times in both years being compared.
When branches close, revenue is excluded from the prior year figures for the
months equivalent to the post-closure period in the current year.
RESPONSIBILITY STATEMENT
We confirm that to the best of our knowledge:
● The condensed set of financial statements has been prepared in
accordance with IAS 34 - Interim Financial Reporting, as adopted for use in
the UK;
● The Interim Management Report includes a fair review of the
information required by:
(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication
of important events that have occurred during the first six months of the
financial year and their impact on the condensed set of financial statements;
and a description of the principal risks and uncertainties for the remaining
six months of the year; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the entity during that period; and any changes in the related
party transactions described in the last annual report that could do so.
By order of the Board
Geoff Drabble Duncan Cooper
Chair
Chief Financial Officer
4 August 2025 4 August
2025
INDEPENDENT REVIEW REPORT TO TRAVIS PERKINS PLC
Conclusion
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
June 2025 which comprises the condensed consolidated income statement, the
condensed consolidated statement of comprehensive income, the condensed
consolidated balance sheet, the condensed consolidated statement of changes in
equity and the condensed consolidated cash flow statement and related notes 1
to 18.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2025 is not prepared, in all
material respects, in accordance with United Kingdom adopted International
Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of
the United Kingdom's Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" issued by the Financial Reporting
Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim
financial information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with United Kingdom adopted international accounting
standards. The condensed set of financial statements included in this
half-yearly financial report has been prepared in accordance with United
Kingdom adopted International Accounting Standard 34, "Interim Financial
Reporting".
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This Conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410; however future events or conditions may cause the entity to
cease to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the group's ability to continue as a going concern, disclosing
as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the
company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly financial report, we are responsible for
expressing to the company a conclusion on the condensed set of financial
statements in the half-yearly financial report. Our Conclusion, including our
Conclusion Relating to Going Concern, are based on procedures that are less
extensive than audit procedures, as described in the Basis for Conclusion
paragraph of this report.
Use of our report
This report is made solely to the company in accordance with ISRE (UK) 2410.
Our work has been undertaken so that we might state to the company those
matters we are required to state to it in an independent review report and for
no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company, for our review work,
for this report, or for the conclusions we have formed.
Deloitte LLP
Statutory Auditor
Abbots House
Abbey Street
Reading
RG1 3BD
4 August 2025
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