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Travis Perkins is closing 19 locations and cutting 400 jobs as construction is delayed
Travis Perkins cut 400 jobs and closed 19 branches late last year as a slowdown in the construction industry hit business, it said yesterday.
The construction trader, which has more than 20,000 employees and 1,400 branches across the UK and Europe, including through its Toolstation business, said it was forced to make some ‘tough decisions’ to cut costs by £25 this year million down.
The closures occurred at Travis Perkins’ general trading division and at Benchmarx’s kitchen division.
Closures: Travis Perkins, which has more than 1,400 branches in the UK, said it was forced to make some ‘tough decisions’ this year to cut costs by £25m
Travis Perkins reported a 20 per cent drop in profits to £245 million for 2022. It was hit by housing market woes amid economic uncertainty and rising cost inflation.
A spokesman said: ‘With the expectation of lower levels of activity in the UK construction sector in the coming year, management has implemented a number of cost-cutting measures in Q4 2022 to ensure that the group’s cost base appropriately reflects the trading environment. . ‘
Travis has lowered its investment plans for 2022 and 2023 in light of the more difficult trading conditions.
Spending in 2022 was about £15 million less than the previously planned £125 million a year, with an expected reduction of about £25 million in 2023 to £100 million.
Nick Roberts, chief executive of Travis Perkins, added: “In the second half of the year we made some tough decisions in response to the weaker trading environment and we continue to monitor market trends and work closely with our customers and suppliers to stay on the front foot.’
Shares in Travis fell 4 percent, or 42p, to 1004p.