Builders merchant Travis Perkins (LON:TPK) is to close 30 UK branches and shed 600 staff due to uncertainty over future trading.
Underlying profits [EBITDA] this year would now undershoot slightly market forecasts of £415mln said the Wickes owner.
The branch closures will be in its trade business and with the shutting of ten distribution centres and IT write-offs would mean an one-off charge of between £40mln-50mln.
Sales in three months to end September rose by 3.4% as consumer sales jumped by 9.1% or by 6.8% like-for-like.
Plumbing had a tougher time, with like-for-like sales down 4.1% a performance Travis said was not satisfactory even though market conditions were difficult.
Nine month sales were up 4.9% with consumer sales consistent with a 9.2% improvement.
John Carter, chief executive, said Consumer and Contracts businesses materially outperformed its markets but Plumbing & Heating results were disappointing and these businesses are under review.
“It is still too early to predict customer demand in 2017 with certainty and we will continue to monitor our lead indicators closely.”