Travis Perkins PLC

Travis Perkins reported a 1.8% decline in first-half revenue to £2.258 billion as challenging construction markets weighed on volumes, while higher gross margins, cost discipline and property receipts supported profit and cash generation. Adjusted operating profit including property profits rose 6.3% to £67 million, and adjusted earnings per share increased 13.5% to 15.1 pence. Gross margin improved by 100 basis points, reflecting a focus on passing through supplier price increases, avoiding unnecessary discounting, and shifting sales toward higher-margin transactions. Net cash before leases reached £55 million, a £158 million year-over-year improvement, returning leverage to 1.9 times net debt to adjusted EBITDA within the company's target range for the first time since 2022. The board recommended an interim dividend of 4 pence per share, and management expects second-half trading conditions to remain similar to the first half.