Travis Perkins PLC on Thursday cut its guidance for adjusted operating profit this year as its General Merchant unit saw a loss of market share, but noted very early signs of recovery.

The Northampton, England-based builders’ merchant said revenue fell 5.7% in the third quarter of 2024.

Travis Perkins said its General Merchant arm underperformed, noting it saw a loss of market share over the summer. ‘Both volume and margin in the General Merchant have underperformed expectations with volume continuing to decline despite recent changes to optimise pricing. More widely the market remains mixed, with ongoing competitive intensity in some of the group’s Specialist Merchanting businesses but early signs of returning confidence in others,’ Travis Perkins said.

The company cut its guidance.

Travis Perkins now expects an adjusted operating profit of around £135 million in 2024, down 25% from £180 million in 2023.

This was lowered by 10% from £150 million it had guided for back in August, and at least 16% lower than £160 million to £180 million guided back in March for 2024.

‘Overall, the group’s key end markets are stabilising with some very early signs of recovery. Management expects to see positive growth in these underlying markets over the next twelve months, but that this growth will be slow and non-linear at the outset, with the benefit to financial performance starting to be realised in the second half of 2025,’ the company said.

Travis Perkins shares fell 5.4% to 872.50 pence each on Thursday morning in London.

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