Travis Perkins has signalled the early stages of a recovery after reporting stronger profits despite one of the toughest environments for Britain’s construction sector in years, sending shares sharply higher as investors welcomed signs of a turnaround.
The builders’ merchant, which owns Toolstation, said adjusted operating profits rose 6.3 per cent to £67 million in the six months to June 30, compared with the same period last year. Shares jumped 17 per cent in early trading, reaching their highest level in five months.
The improvement came despite falling revenues, which declined 1.8 per cent to £2.26 billion as high interest rates, inflation and weak construction activity continued to weigh on demand.
Travis Perkins warned that the wider market remained subdued, describing activity levels in the first half of 2026 as “depressed”. The company also said geopolitical uncertainty and volatile economic conditions had made building material price inflation increasingly difficult to predict.
However, management pointed to improving operational performance, with profitability in its merchant division boosted by selective price increases, a better sales mix and procurement savings.
Toolstation provided further support, with revenues increasing 1.7 per cent as the business benefited from supplier price adjustments and continued demand from trade customers and consumers.
The results mark an important early test for new chief executive Gavin Slark, who is overseeing a renewed effort to simplify the group and restore profitability after years of challenging trading conditions.
Mr Slark said the company had built on operational improvements made during the previous year and now had a clearer strategic focus under a new senior leadership team.
“We have made encouraging early progress in rebuilding profitability in the general merchant business and Toolstation UK continues to perform in line with our expectations,” he said.
The company expects a similar performance in the second half of the year, although it acknowledged that the construction market recovery remains uncertain.
For investors, the latest figures offer cautious optimism that Britain’s largest builders’ merchant may finally be moving beyond the worst of the downturn — but the road back to sustained growth remains dependent on a revival in construction activity.
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