UK builder merchant Travis Perkins offsets revenue decline with 100 basis points gross margin expansion and property profits.
Travis Perkins (LON:TPK) posted a 6.3% increase in first-half adjusted operating profit to £67 million, despite a 1.8% drop in revenue to £2.258 billion. Like-for-like turnover fell 0.7%, reflecting weak construction demand and the prior sale of its Staircraft unit.
Gross margin expanded by 100 basis points, driven by supplier price pass-throughs, reduced discounting, and a shift toward higher-margin yard sales. The company also cut nearly one-fifth of its tail merchanting suppliers and harmonized purchasing terms across the group.
Adjusted earnings per share rose 13.5% to 15.1 pence, supported by lower finance costs and higher cash balances. The board declared an interim dividend of 4 pence per share, payable November 6.