Northampton-based Travis Perkins predicts 25% drop in profit

The building materials firm’s new boss, Travis Perkins, said the firm’s “distraction” was to blame for the second drop in forecast profits.

Pete Redfern became chief executive of the Northampton-based firm last month and is now forecasting a 25% drop in annual profits this year.

The group announced in March that it would close its Toolstation distribution center in Daventry later this year due to the difficult trading environment.

Mr Redfern takes direct control of the group’s general trading division, which has been hit particularly hard by trading difficulties.

Travis Perkins said in August that annual profits would fall from £180 million in 2023 to £150 million in 2024.

It has now lowered its estimate to £135 million.

The firm reported a 6.8% decline in comparable revenues in the third quarter; Sales in the general commercial arm fell 8.2%.

Mr Redfern said: “It is clear that the group has allowed itself to become distracted and overly inwardly focused, which has led to underperformance in recent periods.

“We now need to focus on operational execution.

“My immediate priorities are to improve and encourage performance and motivation in branch leadership, identify other ways to ensure the business runs more efficiently and ensure we face the expected recovery in the UK construction market.”

The firm’s shares fell as much as 7% in early trading Thursday following the profit warning.

announced that it was closed Tool station distribution center in Daventry and a similar building in Bridgwater, Somerset, earlier this year as part of efforts to make the organization more efficient and reduce costs.

The group also announced that it would close its loss-making Toolstation business in France.