Travis Perkins (LON:TPK) reported broadly flat revenue and a lower adjusted operating profit for the year, while highlighting a strengthened balance sheet and improved cash generation following a year that included disruption from an Oracle enterprise resource planning (ERP) implementation and leadership turnover.
Full-year results and dividend
Group revenue for the year was GBP 4.6 billion, down 0.9% year-on-year. Management said like-for-like revenue was up 0.3%, describing the top line as “broadly flat.”
The board declared a final dividend of 7.5 pence per share, bringing the full-year dividend to 12 pence. Cooper said this was consistent with the group’s policy to pay 30% to 40% of adjusted earnings.
Sales trends, pricing pressure, and competitive backdrop
Cooper said the first half was affected by key vacancies and efforts to “grapple with” Oracle implementation, but sales performance improved in the second half with promotions and a more “front-footed” approach. In the merchanting segment, he said the general merchant business began reversing market share losses and “retake share,” a trend he said continued into early 2026.
The company pointed to improving quarterly like-for-like sales in merchanting, from -3.2% in Q1 to +2.1% in Q4 as the group exited the year. The results also reflected one fewer trading day in 2025 versus 2024 and the disposal of Staircraft, which management said was not material enough to be treated as a discontinued operation.
In the operating profit walk, Cooper cited competitive intensity in a market “starved of volume growth,” noting that manufacturers’ price increases had been difficult to pass on in full. He said price investment had been needed in the second half to help drive volume recovery.
In Q&A, CEO Gavin Slark said last year the company demonstrated it could increase market share by being more price competitive, but said 2026 required a “more nuanced approach” balancing price and margin. He referenced recent manufacturer communications about energy and transport surcharges, and highlighted sensitivity to costs such as diesel, noting the group spends about GBP 15 million a year on diesel within merchant businesses.
Asked about competitive behavior, Slark said the market has long been competitive and he did not see competitors behaving “less rationally” than in prior years.
Costs, overhead actions, and adjusting items
Cooper said total overhead inflation in 2025 was around GBP 40 million, driven by a part-year effect of the National Insurance increase, National Living Wage, and property rates and rental inflation. The company reinvested in frontline branch-based roles that had been removed at the end of 2023, onboarding most of about 350 colleagues early in the first half of 2025. Three new general merchant branches also contributed to headcount increases.
At the same time, Cooper said the group reduced central and regional management headcount, entering 2026 with over 300 fewer heads in areas including finance, company secretariat, sustainability, HR, corporate communications, procurement and marketing, and IT. In Q&A, management said there were no “live and significant programs” currently, but reiterated the business is reviewing resourcing and structure.
The company also detailed adjusting items, including:
- GBP 111 million of charges that included GBP 67 million of non-cash impairments across 196 branches in merchanting, where carrying values exceeded forecast discounted cash flows.
- A GBP 44 million non-cash goodwill impairment in CCF, reflecting “structural challenges” in end markets and future profitability forecasts.
- Toolstation Europe impairment and restructuring charges tied to Toolstation Benelux performance and prior Toolstation France-related provisions.
- A GBP 12 million restructuring charge related to severance payments for headcount reductions.
- The sale of Staircraft for GBP 21 million, resulting in a GBP 3 million loss on disposal.
Cash generation, leverage, and refinancing
Management emphasized cash flow and balance sheet strength. The group delivered a GBP 196 million cash inflow for the year, which Cooper said was achieved despite lower year-on-year EBITDA. Working capital was a key contributor: trade debtors fell by GBP 130 million as the company invoiced “much of the Oracle-related backlog” and tightened debt collection discipline; trade creditors rose by GBP 26 million as payment terms were harmonized following Oracle’s introduction.
Net debt fell by GBP 224 million to GBP 621 million, and the group ended the year at net cash of GBP 1 million before leases. Slark described this as the best cash position the group has had in more than 25 years. Cooper said leverage reduced to 2.1x.
The balance sheet improvement also supported refinancing activity. Cooper said the company refinanced a GBP 250 million corporate bond due in 2026 using U.S. private placement funding, with a blended coupon of 6.27%. He said maturity timelines now run out to 2035, and the group has no significant refinancing events until 2028. The company ended the year with over GBP 800 million of available liquidity including its undrawn revolving credit facility.
Business priorities and 2026 expectations
Slark, who said he has been CEO for 10 weeks, outlined an operating approach centered on being a “branch-based, sales-led organization” alongside disciplined cost, margin, and capital allocation. He said the Oracle transition pain was “principally behind us” and that branches were beginning to see benefits.
He described a three-tier view of the portfolio:
- Tier one: Travis Perkins General Merchanting (Green & Gold), BSS, Toolstation UK, and Keyline, which he said were delivering “sustainable financial return,” with a focus on improvement and collaboration without “grand centralization.”
- Tier two: CCF and TF Solutions, with combined revenues of around GBP 600 million, described as trading around break-even and requiring specific operational improvements.
- Tier three: Toolstation Benelux, described as a “perennial loss maker” and cash burn; Slark committed to providing “absolute clarity” on the plan for Benelux by the half-year results.
On guidance, Cooper said the group expects a ~30% effective tax rate, ~GBP 80 million of capital expenditure, and ~GBP 5 million of property profits. He said interest expense is expected to be around GBP 6 million higher per annum on a like-for-like basis due to refinancing, partly offset by higher interest income from the group’s cash position. He also said the company expects a similar level of loss in Toolstation Benelux in 2026.
Asked about share buybacks, Cooper said capital allocation would be addressed alongside more developed strategy at the half-year update, adding that the company was currently “basking” in a relatively strong position given uncertainty in the environment.
About Travis Perkins (LON:TPK)
Travis Perkins plc engages in distribution of building material products in the United Kingdom. It operates through Merchanting and Toolstation segments. The company offers tools and building supplies. It also distributes pipeline products, as well as supplies managed services, and commercial and industrial heating and cooling solutions. In addition, the company provides in specialist civils and drainage solutions; and air-conditioning and refrigeration products and heat pumps. Further, it provides insulation and interior building products to interior building specialists, contractors, and builders; and kitchens and joinery products.
