Travis Perkins (LSE:TPK) experienced a drop in both its profits and sales in 2023 after a downturn in both the housing and the repair, maintenance and improvements (RMI) market.
Sales during the year fell just under 3% to £4.8 billion, while adjusted earnings per share tumbled almost 52% to 45.7p.
In the second half of 2023, the builders' merchant said it experienced weaker volumes, overhead cost inflation and rapid commodity price deflation, which led to operating profits for the period sinking almost 40% to £180 million.
The full-year dividend was also cut by around 54% from 39p per share to 18p.
Nick Roberts, chief executive officer, said: “With market conditions expected to remain a headwind through 2024, the business is fully focused on improving profitability and enhancing cash generation.
“We have successfully acted to optimise our cost base and are actively addressing the impact of our loss-making businesses.
“This will be achieved by simplifying our operational structures, consolidating our supply chain, creating shared procurement capability, and embedding new technology.”
Capital expenditure is expected to reach £80 million in 2024, but management noted that all refinancing is completed and that there are no funding maturities until 2026.