Britain’s construction slowdown is continuing to bite, with Travis Perkins reporting falling sales as economic uncertainty and pressure on housebuilding weigh on demand for building materials.
The London-listed group, one of the UK’s biggest builders’ merchants, said like-for-like revenue fell 1.3 per cent in the three months to September 30, extending its weakness across the year. Revenue on the same basis was down 0.9 per cent in the year to the end of September.
The figures underline the difficult conditions facing the construction industry, where high interest rates, persistent cost inflation and uncertainty over the economic outlook are holding back development. Travis Perkins said trading remained subdued, particularly in the new-build residential market, as “macroeconomic uncertainty persists”.
Investors reacted nervously to the update, sending the company’s shares down nearly 3 per cent at one stage on Thursday before losses narrowed to about 1.5 per cent.
The pressure on sales highlights the challenge facing suppliers whose fortunes are closely tied to Britain’s building activity. When developers delay projects and households hesitate over major home improvements, demand for timber, bricks, plumbing supplies and other construction essentials can quickly suffer.
Travis Perkins is seeking to protect profitability rather than chase volumes in a market where demand remains weak. The group said it was prioritising more profitable trade, tightening credit risk and pursuing further operational efficiencies to offset the impact of lower sales.
Chief executive Gavin Slark said the company remained focused on the factors within its control, with cost discipline and its trading approach helping to protect profits despite weaker volumes.
The picture was mixed across the group’s businesses. Toolstation UK, its trade-focused retail arm, delivered like-for-like revenue growth of 3.6 per cent in the three months to September, in line with expectations and ahead of further planned store openings in 2027.
But Toolstation Benelux continued to struggle. Like-for-like revenue fell 4.7 per cent over the same period, prompting Travis Perkins to say it was continuing to explore options to address the brand’s “challenging” position.
The contrast points to the uneven nature of the downturn: pockets of resilience remain, but they have yet to offset broader weakness across the group.
For the wider construction sector, the key question is when confidence will recover sufficiently to unlock delayed projects and revive demand. Until then, suppliers face a difficult balancing act between defending margins, controlling costs and maintaining their position in a subdued market.
Travis Perkins said it would set out more detail on its strategy and operational priorities alongside its preliminary results in March 2027. For now, its latest trading update offers little evidence that Britain’s construction market is ready for a sustained rebound.
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