Travis Perkins sales slump 20 per cent in first half
Travis Perkins reported a 20 per cent hit to sales during the first half of the year due to the impact of the coronavirus pandemic, but said business started to recover as lockdown was eased.
Group revenue in the first six months of the year was £2.78bn, down 20 per cent compared to the first half of 2019.
Between April and June, during the most restrictive months of lockdown, sales plunged 34.8 per cent.
The group said that despite the permanent closure of 165 branches in June – around eight per cent of its estate – the business was recovering well.
Travis Perkins chief executive Nick Roberts said: “Since the trading update on 15 June, the business has continued to recover well with good demand from RMI and infrastructure markets offsetting ongoing challenges in the new build and commercial construction sectors.
“We remain cautious as to the near-term headwinds facing our business and the wider economy, nevertheless the decisive actions we have taken to manage our cost base mean that we are well placed to continue to service our customers, support our colleagues and generate value for our shareholders.”
The store closures announced in June will see around 2,500 employees made redundant.
Travis Perkins warned at the time that an impending recession caused by the coronavirus crisis will hit demand for the rest of the year and 2021.
The group said branch closures will be concentrated in the merchant businesses, in particular the Travis Perkins General Merchant fascia, focused on small branches where it was either difficult to implement safe social distancing practices or where marginal profitability will be eroded.