Travis Perkins PLC has published its financial accounts for 2025.
The Group delivered revenue of £4.5 billion, down 0.9% compared to the previous year. The decline in revenue is explained by difficulties in the merchanting segment, with activity across the majority of end markets remaining subdued throughout the year.
The group’s merchanting businesses saw flat like-for-like revenue, as a sharper commercial proposition and the deployment of sales-driven incentives progressively offset the ongoing impact of depressed levels of UK construction activity.
Like-for-like volume growth of 0.5% was fully offset by sales price deflation of 0.6% as market over-capacity hindered the ability of distributors to pass modest manufacturer price increases to customers. A 0.7% impact from the divestment of Staircraft and a 0.6% impact from one fewer trading day saw overall revenue down by 1.7% (to £3. 7 billion) in 2025.
During the second half management implemented a series of actions to rebuild market share, including targeted promotions in plasterboard, PIR insulation board and class B bricks, sales-driven incentives and the continuing addition of resources back into customer-facing roles to improve service levels. These actions and greater leadership stability have improved the trading performance with 45,000 net new customer accounts opened in 2025 and like-for-like sales improving throughout the year.
Adjusted operating profit reduced by 18.1% to £122 million despite focussed cost management, reflecting the high operational gearing of these businesses. The operating profit of £3 million (2024: £20 million) was the result of these factors and adjusting items of £123 million (2024: £133 million) relating to impairments and restructuring actions.
There was limited change in the merchanting branch network in 2025, reflecting disciplined capital spend in a challenging market, with three new General Merchant branches opened during the year in Birmingham, Watford and Salford, and a small number of relocations.
On 30 April 2025, the Group sold its specialist floor kit, i-joist and staircase manufacturer Staircraft for cash consideration of £21 million as part of a continued focus on simplifying the Group’s operating model.
Toolstation UK continued to make strong progress during the year with revenue increasing by 2.7%, reflecting store maturity benefits, price inflation and further enhancements to the digital and physical customer experience. App sales are increasing and growth in customer loyalty, with around 700,000 Toolstation Club members now signed up, has helped increase average order value for those customers.
A net three stores were added during the year with eight new stores and five closures. Up to 20 new store openings are expected in 2026, including the launch of the new urban convenience format Toolstation GO, which is being trialled with the first store opening in Battersea, London.
Adjusted operating profit increased by £10 million (29.4%) year-on-year driven by a combination of sales growth, gross margin benefits from improved purchasing, and pricing and supply chain efficiencies.
The group's oeverall adjusted operating profit of £133 million was £19 million, or 12.5%, lower than 2024, reflecting a £32 million decline in gross profit in merchanting primarily driven by lower trading volumes, greater promotional activity and one less trading day, overheads in line with the previous year with cost inflation and increased employer national insurance contributions broadly mitigated by proactive cost management, and property profits of £10 million (£1 million lower than in 2024).
The group says it has made excellent progress on actions to strengthen the balance sheet during the year, with overall net debt reducing by £224 million, and net debt before leases reducing by £192 million to deliver a net cash position (before leases) for the first time in nearly 30 years.
The trading environment since the start of the year has remained subdued and this reflects a continuation of the weak UK construction activity figures reported for the final quarter of 2025. Against this backdrop the group says it will remain focused on improving its customer proposition, leveraging its strong financial position, and delivering further operational efficiencies in readiness for when market conditions recover.
Gavin Slark, CEO, commented: “I am delighted to have joined as CEO of Travis Perkins plc. It is a business I am very familiar with from my time in the industry and that has enabled me to hit the ground running since I joined at the start of January. I have been immediately impressed with the energy and enthusiasm that exists across all parts of the Group to rebuild our capabilities and performance and enhance our standing as the UK’s largest distributor of building materials.
"We have fantastic brands and locations, complemented by a resilient and committed workforce who want to see us back at our best. I want to thank Geoff Drabble, our Chairman, for stepping in and supporting the management team last year and for putting in place the foundations of our recovery. I also want to thank all our colleagues for their dedication and effort in responding to these changes.
"We have made significant operational progress over the past year. We have a fully resourced senior management team in place, have successfully overcome the difficulties associated with implementing a new IT system and have taken action to reduce the administrative overheads in our central and regional teams. However, it is the strength of our balance sheet that now provides the necessary resilience and flexibility to underpin our competitiveness in what remains a challenging market backdrop for UK construction activity. We will maintain our disciplined and selective approach to capital allocation as we navigate our way back to better market conditions.
"I am looking forward to working with all our colleagues to develop and communicate our strategy for the Group as we look to the future. I have no doubt that we can restore the Group’s performance and create significant shareholder value over the medium term.”
