Northampton-based Travis Perkins reports falling sales as uncertainty continues to hit construction industry
Northampton-based building materials giant Travis Perkins is continuing to face difficult trading conditions, with uncertainty across the construction industry putting pressure on sales.
The company has reported a decline in revenue during the latest quarter, reflecting continued weakness in the market, particularly the construction of new homes.
Figures released in its latest trading update show like-for-like revenue fell by 1.3% during the three months ending September 30.
Across the first nine months of the year, like-for-like sales were down 0.9%.
The figures come against a backdrop of high interest rates and rising costs, which have continued to affect construction activity and new development projects.
Travis Perkins said conditions remained particularly challenging in the new-build residential market, with wider economic uncertainty showing little sign of easing.
In response, the business is concentrating on more profitable trading opportunities while taking steps to limit the risks associated with extending credit to customers.
These measures are intended to protect profitability despite reduced sales volumes.
Investors reacted negatively to the announcement, with shares in the London-listed business falling almost 3% at one point on Thursday. They subsequently recovered some ground, trading around 1.5% lower.
Performance across the company's Toolstation operations was mixed.
Toolstation UK recorded a 3.6% increase in like-for-like revenue during the quarter, meeting expectations as the business prepares for further store openings in 2027.
However, its Benelux operation experienced a 4.7% decline over the same period.
The company described the situation facing Toolstation Benelux as challenging and confirmed it was continuing to consider possible options for the business.
Chief executive Gavin Slark said: “In challenging market conditions we remain focused on what we can control.
“Our ongoing cost discipline and trading approach are protecting profitability whilst we continue to identify and implement further operational efficiencies.
“We look forward to providing more detail on our strategy and operational priorities at our preliminary results in March 2027.”
Travis Perkins employs around 17,000 people and has approximately 1,500 locations throughout the UK.
Alongside its general builders merchant business and Toolstation, the group operates Keyline, which supplies civil engineering, drainage and heavy building materials.
Its other businesses include BSS, specialising in heating and ventilation, and CCF, which distributes drylining and insulation products.
The company's next scheduled update will provide further details of its longer-term strategy and operational priorities.