Travis Perkins shares plummet to 16-year low as earnings collapse

Travis Perkins shares fell to a 16-year low on Tuesday morning after the group revealed its earnings were virtually wiped out last year.

Following a delay in publishing its annual results, Britain’s biggest building materials supplier said its 2024 operating profits plunged by 99 per cent to £2million. 

It blamed the result on subdued conditions across the UK building sector dampening activity in the domestic repair, maintenance and improvement market.

Trading was further impacted by the rollover of lower commodity prices, especially timber, and uncertainty resulting from the July general election and Autumn Budget. 

The Northampton-based company recorded £139million of adjusting items, compared to just £27million the previous year.

Around £96million of items concerned impairments in certain branches and the firm’s Staircraft business, while a further £26million was derived from closing several distribution centres.

Total revenue dropped by 4.7 per cent to £4.6billion despite a stronger performance from its Toolstation business. 

Shares in Travis Perkins sank 11.85 per cent to 484.8p in early trading, making them the FTSE 250 Index’s worst performer.

Poor results: Britain’s biggest building materials supplier, Travis Perkins, revealed that its operating profits in 2024 plummeted by 99 per cent to £2million

Travis Perkins told shareholders trading conditions remained challenging in its merchanting arm since January, with prices now steady but volumes down.

It warned that a recovery in activity levels would depend on a rebound in consumer confidence and additional interest rate reductions.

Geoff Drabble, chair of Travis Perkins, said: ‘Whilst uncertainty remains regarding the strength and timing of a recovery in UK construction activity, with more resources re-deployed into customer-facing roles, the group is now better placed to benefit from returning demand.

‘This will be supported by disciplined capital allocation, focused on upgrading and protecting our core competitive advantages, and a clear customer-focused strategy owned by the leaders of the business.’

Travis Perkins’s results come a few weeks after the group announced the sudden departure of chief executive Pete Redfern due to ill health.

Redfern lasted just six months at the company, having previously spent over 14 years in charge at housebuilder Taylor Wimpey.

His short tenure at Travis Perkins was marked by a second downgrade of the firm’s annual profit forecast in three months following another decrease in quarterly sales.

Mark Crouch, market analyst at eToro, said: ‘Shareholders cannot seem to catch a break as Travis Perkins shares have sunk to a 16-year low in 2025, hammering home the difficulties the company is facing.

‘With interest rates remaining stubbornly fixed in place, uncertainty is weighing heavily on both investors and consumers, leaving them hesitant to act.’