Turnaround on track, says Travis Perkins

By the Editorial Team · Wednesday, August 5, 2026

Travis Perkins reported a pre-tax profit of £47 million for the first half of the year, beating expectations despite a 1.8 percent revenue decline amid challenging market conditions. The company is advancing its turnaround strategy by reducing debt, improving cash flow, and exploring the sale of loss-making Benelux operations to focus on more profitable areas.

Travis Perkins, the UK’s largest builders’ merchant, reported higher-than-expected half-year profits and is making progress in its ongoing turnaround strategy despite challenging market conditions. For the six months ending June 30, the company posted a pre-tax profit of £47 million, up from £37.1 million in the same period the previous year. This improvement was supported by price increases and more favourable supplier contract terms.

The company’s total revenue declined by 1.8 percent year-on-year to £2.3 billion, reflecting subdued activity in the building materials sector. The merchanting division, which represents the core of the business, experienced a 1.2 percent decline in like-for-like sales and a 5 percent fall in adjusted operating profit to £60 million, although this was slightly better than analysts had anticipated. Toolstation, the company’s DIY and trade-focused retail arm, saw a 1.7 percent rise in revenue to £425 million but reported flat profits of £15 million.

Amid efforts to strengthen its financial position, Travis Perkins has initiated talks with prospective buyers over a potential sale of its Benelux operations. The division, which has been under strategic review due to mounting losses, recorded a £7 million loss on declining revenue down 6.1 percent. The decision to explore a divestment of Toolstation Benelux is part of the company’s broader strategy to focus on more profitable areas.

Travis Perkins’ net cash position improved significantly, reaching £55.3 million before leases, marking the first time in over a century the company has become cash-positive. This milestone followed debt reduction efforts earlier in the year. The company’s share price responded positively to these developments, rising 18.4 percent and topping the FTSE 250 mid-cap index.

Chairman Geoff Drabble and Chief Executive Gavin Slark, who joined the company in January to lead the turnaround, highlighted the progress made but acknowledged that further work remains. Slark stated that while the company has a solid understanding of its strengths, there are areas requiring improvement to fully restore financial performance and achieve its potential.

The sector continues to face headwinds, including subdued demand and unpredictable inflationary pressures linked to geopolitical and economic volatility. Despite these challenges, Travis Perkins’ management remains focused on cost-cutting, leadership changes, and strategic portfolio adjustments to navigate the difficult environment and drive future growth.

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