Travis Perkins, a builders’ merchant which also owns the Toolstation chain, has announced that it cut 400 jobs and closed 19 branches in the final quarter of 2022. This decision was made in response to a slowdown in the construction sector, with the aim of reducing costs by £25 million. The group closed branches in its general merchant and Benchmarx divisions, losing 400 jobs across central support functions and site closures. Travis Perkins employed around 20,000 people and had approximately 1,500 branches before these cuts.
Travis Perkins reported a 20% decrease in pre-tax profits to £245 million for 2022. This was due to a challenging housing market, economic uncertainty, and surging cost inflation.
The group is anticipating a further decline in the construction market by ‘the mid to high single-digit range in 2023, with the residential, new build homes sector particularly affected.
The group expects more cost pressures over the year ahead, with inflation running at mid to high single-digit levels. Travis Perkins has cut its investment plans for 2022 and 2023 in response to these conditions. The group has already spent £15 million less than the £125 million per year previously guided for in 2022, with another cut of approximately £25 million expected in 2023 to £100 million.
Nick Roberts, chief executive of Travis Perkins, said: ‘In the second half of the year, we made some difficult decisions in response to the weaker trading environment, and we continue to be watchful of market trends, working closely with our customers and suppliers to stay on the front foot.’ This overhaul follows Travis Perkins’ decision in 2020 to close 165 stores, which resulted in around 2,500 workers losing their jobs. The group also spun off its Wickes retail DIY business in April 2021 and sold its plumbing and heating business a month later to private equity company HIG Capital for £325 million.
»Travis Perkins reports 20% decrease in pre-tax profits to £245 million for 2022«
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