• Research Tree
  • Features
  • Pricing
  • Events
  • Reg.News
  • Short Interest
  • Explore Content
    • Explore

      • Providers
        • Providers

          • Free/Commissioned
          • High Net Worth Offering
          • Institutional Offering

          Free/Commissioned

          Research that is free to access for all investors. Companies commission these providers to write research about them.

          View Research

          What is our Main Bundle Offering?

          Brokers who write research on their corporate clients and make it available through our main bundle offering.

          View Research

          What is Institutional?

          Research that is paid for directly by asset managers. Only accessible to institutional investors permissioned for access.

          View Research
      • Regions
        • Regions

          • UK
          • Rest of EMEA
          • N America
          • APAC
          • LatAm
      • Exchanges
        • Exchanges

          • Aquis Apex
          • Australian Securities Exchange
          • Canadian Securities Exchange
          • Euronext Paris
          • London Stock Exchange (domestic)
          • SIX Swiss Exchange
      • Sectors
        • Sector Coverage

          • Building & Construction
          • Discretionary Personal Goods
          • Discretionary Retail
          • Energy
          • Health
          • Investment Trusts
          • Media
          • Resources
          • Technology
      • Small / Large Cap
        • Small / Large Cap

          • UK100
          • UK250
          • UK Smallcap
          • UK Other Main Markets
          • Other
  • Login
  • Sign Up
LIVE

Event in Progress:

Join Here ×
  • 19 Oct 16
title

Travis Perkins profit warning sends shares falling

  • 696 views
James Valentine

Digital editor at Research Tree

 
Travis Perkins Boss
Strap line

TPK to axe 600 staff as Brexit bites

Companies: Travis Perkins plc


Body

FTSE 100 building and DIY retailer Travis Perkins (LSE: TPK) this morning issued a profit-warning for FY16 and confirmed the company will be axing 600 staff and closing 30 stores in a bid to make £40-50m savings.
The company said its adj EBITA is expected to be below current market consensus of £415m, and blamed the performance on its heating and plumbing business which, despite operating in a "challenging market" had not been satisfactory. 
The groups total sales grew 3.4%, with LFL sales up 2%. Management said its Consumer, Contracts and General Merchanting businesses had outperformed the market, making up slightly for the performance in Heating and Plumbing. 
Broker Panmure Gordon & Co said today's announcement showed history was repeating itself after a number of profit warnings in the sector last year:
"This time last year the building merchant sector delivered a number of profit warnings, with September-October sales disappointing. Unfortunately history appears to be repeating itself and Travis has warned that “Adjusted EBITA [will be] slightly below current market consensus of around £415m".
Given the uncertainty caused by the referendum we are not surprised (see our Brexit note of 22 July), when we moved our earnings estimates to below consensus." 
John Carter, TPK's CEO said the General Merchanting division's results were very strong, outperforming its market:
"General Merchanting delivered a solid result in the third quarter alongside very strong performances in our Consumer and Contracts businesses where we materially outperformed our markets."
But he confirmed that the Plumbing & Heating division results weren't good:
"...results were disappointing and whilst market conditions have worsened, we are not satisfied with our performance and will commence reviewing these operations.
Our operational focus remains on improving all of our customer propositions, optimising our networks, intensifying our use of space and exploiting the scale advantage we have created. We expect this focus to underpin our outturn for 2016, albeit with Adjusted EBITA slightly below current market consensus of around £415 million."
According to Mr Carter, it is too early to predict consumer demand next year but he said his firm will continue to monitor its lead indicators closely, and confirmed that the FTSE 100 company will be closing over 30 branches and making £40-50m of efficiency driven changes this year.
"We have a proven track record developed over many years of taking swift action to take advantage of opportunities as they arise in whichever part of the cycle we find ourselves.
The strength of the Group's balance sheet and the competitive advantage we have created through the investments we have made position us well to continue outperforming the markets we compete in and drive shareholder value over the medium term."
 

Body Two

Body Three

Body Four

Body Five

The information contained within this post is based on personal experience and opinion and should not be considered as a recommendation to trade nor financial advice.

More Content

More Content

Yet another profit warning

Companies: Travis Perkins plc

AlphaValue

FTSE 100 led by online education specialist Pearson, although AstraZeneca drags on the market

Companies: Travis Perkins plc

Proactive

FTSE 100 maintains gains after Tuesday's spike - Market Report

Companies: Travis Perkins plc

Proactive

Most popular equity research this week | 17-21 Oct

Companies: SOGTPKSNRASCTEFFPMTSTLYOUAVCT

Research Tree

H1 FY23: Toolstation stays strong; margin headwinds to ease gradually

Companies: Travis Perkins plc

AlphaValue
next
 
Research Tree
Useful Links
  • Features
  • Pricing
  • RNS/Newswires Feeds
  • Providers Hub
  • Company Hub
  • Stock Pick League
  • Chrome Extension
  • iOS and Android Apps
Account
  • Login
  • Join Now
  • Contact
  • Follow us on Linkedin
  • Follow us on X

© Research Tree 2025

  • Apple Store
  • Play Store
  • Terms of Service
  • Privacy Policy and Statement on Cookies

Research Tree will never share your details with third parties for marketing purposes. Research Tree distributes research documents that have been produced and approved by Financial Conduct Authority (FCA) Authorised & Regulated firms as well as relevant content from non-authorised sources, who are not regulated but the information is in the public domain. For the avoidance of doubt Research Tree is not giving advice, nor has Research Tree validated any of the information.

Research Tree is an Appointed Representative of Sturgeon Ventures which is Authorised and Regulated by the Financial Conduct Authority.

Top
  • Home
  • Features
  • Pricing
  • Event Hub
  • Reg.News
  • Short Interest Tracker
  • Explore Content
    • Regions
      • UK
      • Rest of EMEA
      • N America
      • APAC
      • LatAm
    • Exchanges
      • Aquis Apex
      • Australian Securities Exchange
      • Canadian Securities Exchange
      • Euronext Paris
      • London Stock Exchange (domestic)
      • SIX Swiss Exchange
    • Sectors
      • Automobile Industry
      • Banks
      • Building & Construction
      • Chemicals
      • Discretionary Personal Goods
      • Discretionary Retail
      • Energy
      • ETFs
      • Financial Services
      • Food & Drink
      • Food Production
      • Health
      • Household Goods & DIY
      • Industrial Equipment, Goods & Services
      • Insurance & Reinsurance
      • Investment Trusts
      • Leisure, Tourism & Travel
      • Media
      • Open-ended Funds
      • Other
      • Real Estate
      • Resources
      • Staple Retail
      • Technology
      • Telecoms
      • Utilities
    • Small / Large Cap
      • UK100
      • UK250
      • UK Smallcap
      • UK Other Main Markets
      • Other
    • Private/EIS
      • EIS Single Company
      • EIS/SEIS Funds
      • IHT Products
      • SEIS Single Company
      • VCT Funds
  • Providers
    • Free/Commissioned
      • Acquisdata
      • Actinver
      • Actio Advisors
      • Asset TV
      • Astris Advisory
      • Atrium Research
      • Baden Hill
      • BlytheRay
      • BNP Paribas Exane - Sponsored Research
      • Bondcritic
      • Brand Communications
      • BRR Media
      • Calvine Partners
      • Capital Access Group
      • Capital Link
      • Capital Markets Brokers
      • Cavendish
      • Checkpoint Partners
      • Clear Capital Markets
      • Couloir Capital
      • Doceo
      • Edison
      • Engage Investor
      • Equity Development
      • eResearch
      • First Equity
      • Five Minute Pitch TV
      • focusIR
      • Fundamental Research Corp
      • Galliano’s Latin Notes
      • GBC AG
      • goetzpartners securities Limited
      • Golden Section Capital
      • GreenSome Finance
      • GSBR Research
      • H2 Radnor
      • Hardman & Co
      • Holland Advisors
      • Hypothesis Research
      • InterAxS Global
      • Kepler | Trust Intelligence
      • London Stock Exchange
      • Longspur Clean Energy
      • Mello Events
      • Messari Research
      • Nippon Investment Bespoke Research UK
      • NuWays
      • OAK Securities
      • Oberon Capital
      • Optimo Capital
      • Panmure Liberum
      • Paul Scott
      • Peel Hunt
      • PIWORLD / Progressive
      • Proactive
      • Progressive Equity Research
      • Quantum Research Group
      • QuotedData
      • Research Dynamics
      • Research Tree
      • Resolve Research
      • SEAL Advisors Ltd
      • ShareSoc
      • Shore Capital
      • Sidoti & Company
      • Small Cap Consumer Research LLC
      • StockBox
      • Tennyson Securities
      • The AIC
      • The Business Magazine Group
      • The Edge Group
      • The Life Sciences Division
      • Trinity Delta
      • Turner Pope Investments
      • UK Investor Group
      • ValueTrack
      • Vox Markets
      • VRS International S.A. - Valuation & Research Specialists (VRS)
      • VSA Capital
      • Winterflood Securities
      • Yaru Investments
      • Yellowstone Advisory
      • Zacks Small Cap Research
      • Zeus Capital
    • High Net Worth Offering
      • Fox-Davies Capital
      • ABG Sundal Collier
      • ACF Equity Research
      • Align Research
      • Allenby Capital
      • AlphaValue
      • Alternative Resource Capital
      • Arctic Securities
      • Arden Partners
      • Auctus Advisors
      • Baptista Research
      • BNP Paribas Exane - Sponsored Research
      • Canaccord Genuity
      • Cavendish
      • Couloir Capital
      • Degroof Petercam
      • Dowgate Capital
      • First Berlin
      • First Equity
      • First Sentinel
      • Greenwood Capital Partners
      • Hannam & Partners
      • Hybridan
      • Kemeny Capital
      • Longspur Clean Energy
      • Louis Capital
      • Magnitogorsk Iron and steel works
      • Medley Global Advisors
      • Northland Capital Partners
      • OAK Securities
      • Oberon Capital
      • Panmure Liberum
      • QuotedData Professional
      • Shard Capital
      • ShareSoc
      • Shore Capital
      • Singer Capital Markets
      • SP Angel
      • Stanford Capital Partners
      • Stifel FirstEnergy
      • Stockdale Securities
      • Tamesis Partners
      • Tennyson Securities
      • The Life Sciences Division
      • Turner Pope Investments
      • VSA Capital
      • Whitman Howard
      • Yellowstone Advisory
      • Zeus Capital
    • Institutional Offering
      • Fox-Davies Capital
      • ABG Sundal Collier
      • ACF Equity Research
      • Acquisdata
      • Allenby Capital
      • Alternative Resource Capital
      • Arctic Securities
      • Arden Partners
      • Auctus Advisors
      • BNP Paribas Exane
      • Bondcritic
      • Canaccord Genuity
      • Capital Access Group
      • Capital Link
      • Cavendish
      • Couloir Capital
      • Degroof Petercam
      • Dowgate Capital
      • Edison
      • First Berlin
      • First Equity
      • First Sentinel
      • Five Minute Pitch TV
      • Fundamental Research Corp
      • Galliano’s Latin Notes
      • GBC AG
      • Golden Section Capital
      • Goodbody
      • Greenwood Capital Partners
      • Hannam & Partners
      • Holland Advisors
      • Hybridan
      • InterAxS Global
      • Investec Bank
      • Kepler | Trust Intelligence
      • Numis
      • NuWays
      • OAK Securities
      • Oberon Capital
      • Panmure Liberum
      • Peel Hunt
      • QuotedData
      • QuotedData Professional
      • Research Dynamics
      • Research Tree
      • Shard Capital
      • Shore Capital
      • Sidoti & Company
      • Singer Capital Markets
      • Small Cap Consumer Research LLC
      • SP Angel
      • Stanford Capital Partners
      • Stifel
      • StockBox
      • Tamesis Partners
      • Tennyson Securities
      • The AIC
      • The Business Magazine Group
      • The Life Sciences Division
      • ValueTrack
      • Velocity Trade
      • VSA Capital
      • Winterflood Securities
      • Zacks Small Cap Research
      • Zeus Capital
  • Contact
  • Sign Up
  • Sign In