Half Year 2026 Travis Perkins PLC Earnings Call Transcript
Key Points
- Adjusted operating profit increased by 6.3% to £67 million, with adjusted EPS up 13.5% to 15.1p.
- Gross margin improved by 100 basis points, driven by disciplined price increases, better sales mix, and enhanced procurement.
- Net cash before leases improved to £55 million, a £158 million year-over-year improvement, with leverage down to 1.9x, within the target range.
- Green and Gold general merchanting delivered a mid-to-high single-digit percentage profit improvement, with strong share recapture.
- Toolstation UK continues to perform in line with expectations, with over 900,000 club members and plans to expand to 650 stores.
- Group revenue declined 1.8% to £2.258 billion, with like-for-like sales down 0.7% in challenging market conditions.
- Market conditions remain difficult, with RMI activity confidence-linked, new house building stalled, and infrastructure lumpy.
- Cost inflation of around £40 million is expected for the year, driven by higher employment taxes and global inflation.
- CCF's performance has deteriorated, heavily impacted by the slowdown in residential new build, particularly high-rise in the southeast.
- Nearly 4,000 UK construction firms became insolvent in the year to April 2026, increasing bad debt risk and requiring careful credit management.
Hi, good morning everybody and welcome to the results presentation for the half year for Travis Perkins. For anyone who doesn't know me, I'm Gavin Slark. I'm the CEO and I'm joined today by Duncan Cooper who is our CFO.
The agenda for this morning is relatively straightforward. I will just give you one slide of a few headlines. I'll then pass you over to Duncan to take you through the financial review.
I will then come back up and just give you a brief overview of where we are with the various businesses and then that should leave us some time for some Q&A and I'll talk you through the process for the Q&A as we go through later on.
In terms of the results that we've announced this morning, obviously, you'll see their revenue at $2.258 billion, down 1.8% in absolute terms. A chunk of that is down to the sale last year of the staircraft business and then from a like-for-like perspective, our overall turnover was down just 0.7%. You'll see there also on the gross margin line, we've improved
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