(Reuters) -Travis Perkins, Britain's largest supplier of building materials, posted an about 4% decline in first-quarter revenue on Thursday, weighed down by weakness in both new-build housing as well as domestic repair and maintenance segments.
Fortunes of companies such as Travis Perkins (LON:TPK) are firmly tied to the health of the housing repair, maintenance and improvement segment, which has been under some pressure as Britons continue to curb spending in the wake of broader economic woes.
The UK housing market had seen signs of stability at the start of 2024 on easing mortgage rates, after battling muted demand for most of last year, but the Bank of England delaying interest rate cuts and macroeconomic woes have tempered hopes of a better-paced recovery.
Travis Perkins said sales across its merchanting segment dropped 4.4% in the quarter on the back of subdued volumes, while pricing had largely stabilised but remained lower than prior year.
Earlier this month, Britain's largest tile retailer Topps Tiles said subdued demand in the domestic repair and maintenance sector, especially for big-ticket projects, persisted into 2024, adding that lower volumes would impact its half-year profit.