Builders merchant admits trading continues to remain 鈥榗hallenging鈥�
Travis Perkins said revenue slipped again in the first three months of this year, in a first quarter trading update this morning.
The FTSE 250 listed building materials giant said group revenue was down 2.1% on the same period last year and admitted that 鈥渢rading remained challenging鈥�.
Its merchanting business saw sales fall 3.2% but its Toolstation arm, which sells tools and building supplies, saw revenue tick up 3.7%.
Julie Palmer, partner at restructuring specialist Begbies Traynor, said: 鈥淭oday鈥檚 trading update provides little to get excited about. The construction sector continues to be hard hit by high interest rates and low consumer confidence.
鈥淚n this climate, Travis needs to demonstrate a clear path to recovery. It must find a way to survive a challenging macroeconomic backdrop including figuring out what its position, plan and purpose is.鈥�
Earlier this month, the firm said operating profit plunged 99% to 拢2m last year with the firm鈥檚 pre-tax profit sinking to a 拢77m loss from a 拢38m profit last time. Revenue was down 5% to 拢4.6bn.
Travis Perkins is also looking for a new chief executive after Pete Redfern stepped down last month after just six months in the role because of ill-health. The firm gave no update on the search in this morning鈥檚 statement.
No comments yet