Travis Perkins (LSE:TPK) turned a profit of £241mln in 12 months, despite inflationary headwinds, after reporting a £35mln loss in 2020.
Due to the boom in house building and renovation during the pandemic, the British home improvement retailer returned to profitability and enjoyed strong sales increases.
Profit before tax was £305.6mln in 2021 compared to a loss of £20.3mln in 2020.
In the year to December 31, the Northampton-based company's revenue surged 24% to £4.58bn.
Last year, basic earnings per share rebounded from a 14.3p loss in the pandemic year to 103.9p.
After the demerger of Wickes, Travis Perkin managed to grow its operating profit from £26mln in 2020 to £349mln in 2021.
Following the demerger of Wickes in April, the Plumbing & Heating business was sold in late May to an affiliate of H.I.G. Capital, an alternative investment firm, for £325mln.
With over 560 branches across the UK, the company said its lead indicators for 2022 were encouraging.
"2021 has been a year of significant operational and strategic progress for the group, completing our portfolio actions and subsequently setting out our ambition to be the leading partner to the construction industry," said Nick Roberts, chief executive officer.
Despite the rise in inflation and supply chain problems that hit the entire building and construction industry during the pandemic, the builders' merchant had a strong year following a restructuring.
"The group has built a strong platform for growth and, given robust end market demand and a positive start to the new year, we remain confident of making further progress in 2022," he added.
While inflation pressures are expected to continue, the company hopes to benefit from hybrid working, as households adapt their living spaces and the housing market remains strong.
Longer term, expansion and decarbonisation of the UK housing stock present significant growth opportunities for the group, it added.
In addition, Travis Perkins (LSE:TPK) has announced the completion of its initial £170mln share buyback programme with the launch of a new non-discretionary share buyback programme.
As part of the second venture, Travis Perkins (LSE:TPK) ordinary shares will be acquired for a maximum aggregate market value of £70 million.