While Travis Perkins continues to perform well in the Toolstation business (volume growth and market share gains), the Merchanting segment remains a mixed bag. Given the profit warning of mid-June 2023, the weakness in the UK residential segment came as no surprise. We expect the inflationary headwinds and margin pressure to ease in H2 FY23. The management reiterated its annual operating profit guidance which is a reassuring for market sentiment. We maintain our positive recommendation.