Travis Perkins suffer amid housing market downturn

A downturn in consumer spending, as well as the housing market collapse has led builders’ merchant Travis Perkins to report a 44% slump in 2008 profits.

The company, which is Britain’s largest builders’ merchant, said pre-tax profits in the 2008 year fell to £146.3 million, compared with £261.4 million the previous year.

Builders’ merchants and DIY chains have suffered heavily by the wider slowdown in the housing market, in which the firm describes as an “increasingly tough trading environment”.

Chief executive Geoff Cooper said further “difficult market conditions” are expected in the coming year.

However, Mr Cooper highlighted that it continues to outperform its rivals, many of which have closed outlets, which improves its prospects for continued like-for-like market share gains.

The Wickes owner has already reduced headcount by 2,500 across the board and warned further cuts will be made if necessary.

In addition, the firm has revealed plans to cut its full year dividend to shareholders in a bid to help it reduce debts.

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