Travis Perkins H1 adjusted operating profit dented by Merchanting segment

(Sharecast News) - Travis Perkins posted a drop in first-half adjusted operating profit on Tuesday as revenue dipped, dented by a weaker performance in the Merchanting segment.

In the six months to 30 June, adjusted operating profit fell 24.1% to �63m. The company pointed to lower trading volumes, greater promotional activity and one less trading day in the Merchanting businesses.

Revenue fell 2.1% to �2.3bn, driven by the Merchanting segment, with activity across the majority of end markets remaining subdued.

Travis Perkins said Toolstation delivered a robust revenue performance with further market share gains as maturity benefits continue to come through.

Chair Geoff Drabble said: "The first quarter was difficult with a continued trend of market share loss and revenue decline in Merchanting. However, I was encouraged by the response of the business to management actions to drive a more customer-focused approach. In the second quarter we delivered improved revenue performance and stabilised Merchanting market share and these trends have continued into July.

"We will build on this momentum in the second half as we deploy further system enhancements that put the difficult Oracle implementation behind us. The strong performance of Toolstation UK, which operates in similar markets to the group's other businesses, demonstrates our potential without internal distractions.

"Whilst the market outlook for the second half remains uncertain, the board anticipates that the group will deliver a full year result broadly in line with current market expectations."