Travis Perkins returns to profit as housing market booms
The construction supplies business saw sales jump 24% and recorded profits of £305.6m despite inflation and supply chain problems.
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Your support makes all the difference.Building supplies business Travis Perkins enjoyed a strong boost in sales and returned to profitability as the company benefited from the boom in housebuilding and renovations during the pandemic.
The company said sales hit £4.6 billion in the 12 months to the end of 2021, up from £3.7 billion a year earlier, with pre-tax profits reaching £305.6 million compared with a £20.3 million pre-tax loss in 2020.
Bosses said they had a strong year following a restructuring of the business, although they admitted trading conditions were difficult due to well-documented rises in inflation and supply chain problems hitting the entire sector during the pandemic.
Looking ahead, they said they expect inflation pressures to continue but hope to enjoy the benefits of hybrid working, as households adapt their living space and the housing market remains strong.
Travis Perkins added that it hopes to enjoy strong growth from Government targets for achieving net zero and decarbonising UK housing stock.
It added: “Government policy remains supportive across all sectors, recognising the essential role that construction will play in delivering a sustainable UK economy.”
During the year the company sold off its Wickes business, and later its plumbing and heating division for £325 million, as it slims down its portfolio.
It still owns catalogue business Toolstation, which saw a 20% jump in sales to £761 million from its 530 stores in the UK and 123 in Europe.
Despite the pandemic causing disruption to retailers and the high street, Travis Perkins opened 70 new Toolstations in the UK and 40 on the continent.