Travis Perkins has released a trading update stating that the business now expected its full year adjusted operating profit to be around £240 million, due to "ongoing challenging market conditions".
Alan Williams, Chief Financial Officer, said that the Group had delivered a resilient performance in the first quarter but has not seen the anticipated easing of market conditions in the second quarter.
Volumes in both the new build housing and private domestic RMI markets continue to be impacted by higher interest rates and weaker consumer confidence driven by persistent, higher than anticipated consumer price inflation.
The update notes that, by contrast, the Group continues to see good performance across its other markets – namely commercial, industrial, infrastructure and public sector housing – and Toolstation continues to perform in line with expectations both in the UK and Europe.
Assuming that the present conditions persist for the balance of the year, Management now expects to deliver a full year adjusted operating profit of around £240 million, compared to the £295 million of last year's profits..
