Travis Perkins predicts 25% drop in profits

Travis Perkins announced earlier this year that it would closing its Toolstation warehouse in Daventry

The new boss of the building supplies firm, Travis Perkins, has blamed a second reduction in predicted profits on the firm being "distracted".

Pete Redfern became the Northampton-based firm's CEO last month and is now predicting a 25% reduction in annual profits this year.

The group announced in March it would be closing its Toolstation distribution centre in Daventry later this year because of the challenging trading environment.

Mr Redfern is taking direct control of the group's general merchant division, which had been hit particularly hard by the trading difficulties.

Travis Perkins had said in August that its annual profits were likely to go down from £180m in 2023 to £150m in 2024.

It has now reduced its estimate further to £135m.

The firm reported a 6.8% drop in like-for-like revenues over the third quarter, with sales at the general merchant arm down 8.2%.

Pete Redfern, the CEO of Travis Perkins, said the company had become "distracted"

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

"We now need to get back to a focus on operational execution.

"My immediate priorities are driving and incentivising branch-led performance and motivation, identifying further ways to make the business run more efficiently, and ensuring that we turn and face the anticipated recovery in the UK construction market."

Travis Perkins has announced that it is closing its Toolstation business in France

Shares in the firm fell as much as 7% in early trading on Thursday after the profit alert.

It announced the closure of its Toolstation distribution centre in Daventry and a similar building in Bridgwater, Somerset, earlier this year as part of efforts to make the organisation more efficient and reduce costs.

The group also revealed it would be closing its loss-making Toolstation business in France.