Travis Perkins, Britain’s biggest supplier of building materials, downgraded its annual profit forecast by as much as 27 per cent on Wednesday, blaming ongoing tough conditions in the new-build housing and renovation markets.
The group said it now expected 2023 adjusted operating profit to be in the range of £175 million ($209 million) to £195 million, down from the £240 million it had guided to in June, itself a 12 per cent downgrade.
“Market conditions remain challenging with continued weakness across new build housing and domestic repair, maintenance and improvements,” chief executive Nick Roberts said in a statement.
Britain’s housing market has cooled this year after a jump in interest rates, which is deterring house building and the housing transactions that often prompt repair and improvement work. Moreover a squeeze on disposable income means consumers are not spending on their properties.
Travis Perkins said it experienced “a notable deterioration in market activity and sentiment” in September, and its bottom line would be hit by deflation in commodity prices which meant it was selling existing stocks at lower market prices to stay competitive.
The group said it remained confident in the long-term outlook as Britain needed more homes and many existing buildings would need to be decarbonised. – Reuters
(c) Copyright Thomson Reuters 2023
