Travis Perkins closes 19 stores as its profits fall 20% to £192m

DIY retailer and building material supplier Travis Perkins has revealed it reduced its store estate by 19 branches and axed 400 roles at the end of last year as its profits after tax fell 20% to £192m. Travis Perkins revealed the cost-saving decision in its full-year results for the year to 31 December 2022, where it also confirmed adjusted operating profit of £295m, impacted principally by lower year-on-year property profits and a £15m charge related to restructuring activities in Q4. This comes despite what it called “robust revenue growth” of 8.9% to £4.95bn with elevated levels of materials cost inflation managed “diligently”. Its merchanting businesses delivered further market share gains and Toolstation returned to good growth in the second half of 2022 following tough comparatives in the first half. CEO Nick Roberts said: “The group delivered a resilient trading performance in 2022 which is testament to the capability of our colleagues and the strength of our market leading propositions. I would like to thank our teams for their hard work throughout the year and their flexibility to meet customer needs amidst rapidly changing market dynamics. “In the second half of the year we made some difficult decisions in response to the weaker trading environment and we continue to be watchful of market trends, working closely with our customers and suppliers to stay on the front foot.” He added: “Investment continues in our strategic growth programmes including selectively exploring new destination branches for the Travis Perkins General Merchant, rolling out Toolstation in both the UK and Europe and investing in growing our value-added services, notably Hire, Benchmarx kitchens and our Staircraft business, always being mindful to flex the pace of the programme to reflect market conditions. “Whilst it is early in the year and macroeconomic uncertainty remains, the combination of our diverse end market exposure, appropriate cost actions and further market share gains driven by continued strategy execution, will enable the Group to deliver another resilient trading performance in the year ahead.”