By Raechel Thankam Job
(Reuters) -Travis Perkins reported a reversal in market share losses in the first half and maintained its annual outlook despite a fall in profits amidst a construction market downturn, sending its shares 8% higher.
The performance was reassuring given concerns about fragile consumer confidence and a sluggish UK economy weighing on construction activity and renovation spending.
The market is not likely to see a rebound in the second half, Chair Geoff Drabble told Reuters, adding that confusion around housing policy further muddled visibility.
But he said targeted promotions helped Travis Perkins win back customers in its Merchanting division, where increased competition and weaker volumes had dampened sales.
“That level of promotional activity is sustainable and will lead us to gaining more market share,” Drabble told analysts in a post-earnings call.
Travis Perkins expects adjusted operating profits of about 141 million pounds for 2025, in line with the previous year.
“Broadly holding full-year expectations is relatively reassuring as others have had more significant profit warnings in the sector,” Aynsley Lammin, analyst at Investec, said.
Merchanting, which supplies building materials to professional builders and tradespeople, had a 1% decline in second-quarter like-for-like sales compared to a 3.2% fall in the prior quarter.
The company’s cautious stance on the market echoed concerns of smaller rival SIG, which on Tuesday flagged a lack of demand recovery in the first half of 2025.
But tight cost control and restructuring, including branch closures, lifted interim profits at SIG, whose outgoing boss Gavin Slark is set to join Travis Perkins in January.
Travis Perkins reported an adjusted operating profit of 63 million pounds ($83.6 million) for the six months ended June 30, down 24% from a year earlier, after excluding discontinued operations.
($1 = 0.7533 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Sumana Nandy and Jane Merriman)
