Travis Perkins profit dips as pandemic home improvement boom ends

Travis Perkins has reported a 6% drop in pre-tax profit as the domestic home improvement and DIY markets “normalised” following a pandemic boom.

The builders merchant, in its results for the six months to 30 June today, reported pre-tax profit of £136.6m, down from £145.7m in the same period last year.

Its operating profit fell 5.9% to £157.4m and 0.6% once adjusted for exceptional items.

Travis Perkins said it considered its performance to be “good” against the strong comparative period last year which ”included the impact of both the rapid recovery of the domestic repairs, maintenance and improvement market, from March 2021 onward, and high levels of DIY activity through the first half of 2021”

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Sales in Travis Perkins’ Toolstation UK business fell 6% in the half year, which it said was due to the customer base “normalising” back to its core trade.

Overall the firm increased its overall turnover by 10.3% to £2.54bn.

It said price inflation has remained consistently high throughout the first half at 15.3%.

It said: “While in the first half of 2021 inflation was driven by product shortages, supply chains and stock levels have largely normalised and the current wave of inflation is predominantly driven by rising energy costs being passed through from manufacturers.”