LONDON (Reuters) - Travis Perkins (LON:TPK), Britain's biggest supplier of building materials, said on Wednesday it would slow investment in non-priority areas as it reported a 7 percent fall in annual core earnings, a second straight decline.
The group, which trades from over 20 businesses including Travis Perkins, Wickes, BSS, Toolstation and City Plumbing, said it expected the mixed market backdrop to continue in 2018.
"As a result, we will be focusing capital investment behind our key priorities, and slowing investments elsewhere," said Chief Executive John Carter.
Travis Perkins' customers include local authorities, big building firms, traders such as plumbers and kitchen fitters and regular consumers, with its fortunes closely tied to housing transactions and consumer confidence.
Carter said the group would focus on maintaining tight control of costs and forecast a 2018 performance similar to 2017's.
The group made adjusted operating profit of 380 million pounds in 2017 - below analysts' consensus forecast of 384.8 million pounds and the 409 million pounds made in 2016.
Revenue was up 3.5 percent to 6.43 billion pounds. The dividend was increased 2.2 percent to 46 pence.
Shares in Travis Perkins, down 8 percent so far this year, closed Tuesday at 1,435 pence, valuing the business at 3.63 billion pounds.
