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Travis Perkins edges higher on profit reassurance, festive job cuts

Published 18/01/2024, 09:35
© Reuters Travis Perkins edges higher on profit reassurance, festive job cuts
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Proactive Investors - Travis Perkins (LON:TPK) shares climbed 5% after it posted a brief but reassuring trading update, revealing that trading in the fourth quarter of last year was in line with expectations and that it has been cutting costs.

While pricing was stable compared to the previous quarter, sales volumes remained "challenging", the builders' merchant chain said.

The FTSE 250-listed group expects adjusted operating profit to be around £180 million for the year, in line with the prior guidance.

"Given that market conditions are anticipated to remain subdued into FY24, management has accelerated plans to continue the transformation of the business," it added.

This included job cuts in the Christmas quarter in the head office and regions, alongside supply chain efficiency efforts.

Together, management expects this to result in around £35 million of savings, with one-off restructuring charges of around £15 million for the past year.

Broker Peel Hunt (LON:PEEL) said the profit figure was slightly ahead of its estimate of £175 million.

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