Travis Perkins (LSE:TPK) has cut its forecasts for the year after interim profits slumped on stalling revenues.
The builders’ merchant said trading conditions remained challenging throughout the first six months of 2024 with prices under pressure and sales volumes lower.
Several of its Toolstation and Benchmarx distribution outlets were closed alongside the timber supply business, which meant one-off costs of £32 million, cutting operating profits to £38 million from £107 million a year ago.
Revenues dropped by 4.4% to £2.36 billion
The interim dividend is also cut to 5.5p from 12.5p in line with the new earnings-linked policy.
For the full year, Travis said it now expected operating profits to drop to £150 million while it has stepped up efforts to restructure the business.
A new chief executive and chairman, Pete Redfern and Geoff Drabble, are joining shortly with exits from Toolstation France and Benelux expected by the end of the year.