Travis Perkins (LSE:TPK) has moved to stabilise its top team by appointing building materials veteran Gavin Slark as its next chief executive, following a turbulent period in which the company has cycled through three CEOs in less than a year.
Slark, who currently leads SIG, will take up the post no later than the start of next year.
His appointment follows the sudden departure of Pete Redfern earlier this year, who stepped down due to ill health after just a few months in the role. Redfern had taken over from Nick Roberts in September 2024.
Slark is well known in the industry and no stranger to the group. He previously ran The BSS Group, which was acquired by Travis Perkins in 2010, and later spent more than a decade as chief executive of Grafton Group. Since 2023, he has led SIG through a strategic turnaround.
“The board and I are delighted that Gavin has agreed to join us,” said chair Geoff Drabble. “He brings unrivalled experience of the sector in addition to a long pedigree as a CEO of significant public companies.
"Gavin is well placed to continue the work we have started to refocus and change the way we operate.”
Peel Hunt welcomed the move. “Given his experience and track record, we expect the news to be taken well by the market,” the broker said. It rates the shares a 'buy' with a 750p target price.
The company’s stock has risen 15% over the past month and now trades at 583p. Peel Hunt noted the shares are valued at around 11 times forecast 2026 earnings and offer a 13% free cash flow yield.
While the long lead time before Slark officially takes the reins leaves a period of uncertainty, his appointment brings a level of credibility and familiarity that may help steady the group after a stretch of executive upheaval.