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Travis Perkins reported a decline in first-quarter like-for-like sales amid continued weakness in the UK construction market. The company faced pressure from subdued housing demand and high interest rates, while rising energy costs added to input expenses. Despite this, it has been working to pass on higher manufacturer prices to customers. Its Toolstation business showed resilience, partly offsetting weaker merchanting performance. Meanwhile, Howden Joinery posted revenue growth supported by price hikes. Analysts caution that rising prices may impact volumes as consumers delay spending.
Travis Perkins, one of the UK’s largest building materials suppliers, reported a decline in its first-quarter performance, reflecting ongoing challenges in the construction sector. The company recorded a 1.7% fall in like-for-like revenue, as weak demand continued to affect its core merchanting business, which serves housebuilders and infrastructure contractors. Advertisement
The company indicated that trading conditions remained difficult, largely due to subdued housing demand and the impact of elevated interest rates. While its Toolstation UK division delivered a steady performance, it was not enough to fully offset the slowdown in merchanting operations.
At the same time, Travis Perkins has been taking steps to manage rising input costs. It stated that progress is being made in passing on manufacturer price increases to customers, along with achieving procurement efficiencies to support margins.
The broader sector continues to face pressure from rising energy costs, partly linked to geopolitical tensions in the Middle East, which have increased overall construction expenses. This has added to the strain on suppliers already dealing with lower activity levels.
Market sentiment was also affected by updates from homebuilder Taylor Wimpey, which raised its build-cost expectations for 2026, citing higher energy prices. This further weighed on Travis Perkins’ shares, which declined by nearly 7%.
In contrast, kitchen supplier Howden Joinery reported a 3.7% rise in its quarterly underlying revenue. The company attributed this growth to price increases implemented across all its markets at the start of the year, along with steady demand in renovation activity.
Howden Joinery stated that it had adjusted pricing while maintaining a balance between margins and sales volumes. However, analysts believe that such price increases across the sector could begin to impact demand.
An analyst from Investec noted that as consumer confidence weakens and disposable incomes remain under pressure, customers are more likely to delay renovation and construction projects. This could affect sales volumes for suppliers despite higher pricing strategies.
The current trend reflects a cautious market environment where companies are focusing on protecting margins while navigating uncertain demand conditions.
Source Reuters
5th Jun, 2025
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