Travis Perkins PLC on Tuesday cut its interim dividend by more than half, as profit and revenue fell amid ‘challenging’ market conditions.

Travis is a Northampton, England-based builders’ merchant, and it used the word ’challenging’ no fewer than ten times in its earnings announcement on Tuesday to describe the state of the UK house construction and repair market.

Pretax profit dropped by 82% to £15.6 million in the six months that ended June 30 from £85.7 million a year before, as revenue declined 4.5% to £2.36 billion from £2.47 billion.

Travis said the trends seen in the second half of 2023 continued into the first half of 2024 with ‘weak demand’ across its end markets and commodity price deflation.

‘Trading conditions have remained challenging through the first half of the year and we have continued to prioritise delivering for our customers whilst also recognising that a persistently lower volume environment means that we have to deliver a simpler, more efficient business,’ commented Chief Executive Officer Nick Roberts.

‘Whilst market conditions have impacted on our trading margin, we have made good progress on managing our overhead base and generating cash.’

Adjusted operating profit fell by a third to £75 million in the first six months from £112 million a year before. Travis said it expects adjusted operating profit to be around £150 million for all of 2024. This would be down 17% from £180 million in 2023.

In response, Travis cut its interim dividend by 56% to 5.5 pence per share from 12.5p, keeping in line with its policy of paying out 30% to 40% of adjusted earnings.

Roberts will be replaced as CEO come September 16 by Pete Redfern, who was CEO of house builder Taylor Wimpey PLC until 2022.

Also joining Travis this autumn is Geoff Drabble, who will join the board as a non-executive director in October and later will take over the chair.

Drabble currently is chair of packaging firm DS Smith PLC. He also is chair of plumbing supplies firm Ferguson, whose London- and New York-listed entity recently was switched to Ferguson Enterprises Inc from Ferguson PLC as part of its shift toward the US.

Travis shares were down 0.5% to 876.01 pence on Tuesday morning in London.

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