The outlook is far from rosy for Travis Perkins (TPK) with shares hitting a 15-year low (1 April) as the builders’ merchant warned profit this year would miss forecasts due to ‘challenging conditions’.

The Northampton-based firm blamed deflation as it slipped to a pre-tax loss of £38.4 million for 2024 from a profit of £121 million the previous year. The company’s plan to revive its fortunes has been knocked off course after former Taylor Wimpey (TW.) boss Pete Redfern had to step down as CEO due to ill health after just a few months in the role. Chair Geoff Drabble, formerly of Ashtead (AHT), who, like Redfern, was brought in last year, now faces the task of appointing a successor.

On the positive side, the firm reported good progress in its Toolstation business which increased operating profit by almost 50% due to strong sales, improved gross margins and supply chain and overhead efficiencies.

Harry Goad, analyst at Berenberg notes the ‘potential scope for market recovery and self-help initiatives’.

He adds: ‘Our updated EBITA (earnings before interest taxation amortisation) reflect 7% growth pre-property and 2% growth including property profit in full year 2025 and so we reflect a slightly more optimistic outlook than company guidance.’ 

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