Builders’ merchant Travis Perkins has revealed it axed 400 jobs and shut 19 branches at the end of last year as the housing market slowdown hits its bottom line.
The group, which owns the Toolstation chain, said it was forced to take some “difficult decisions” to slash costs by £25 million this year.
It closed 19 branches in its general merchant and Benchmarx divisions in the final quarter of 2022, with 400 jobs being cut due to the site closures and across central support functions.
The details came as Travis Perkins reported a 20% tumble in pre-tax profits to £245 million for 2022.
It said it was impacted by woes in the housing market amid economic uncertainty as well as surging cost inflation. Travis Perkins said: “With the expectation of lower levels of activity in the UK construction sector in the year ahead, management implemented a number of cost reduction actions in the fourth quarter of 2022 to ensure that the group’s cost base appropriately reflects the trading environment.
“These changes represent an acceleration of plans to modernise the business by exiting smaller branches and continuing to invest in larger, more capable, destination branches which incorporate value-added services such as hire and kitchen showrooms.”
Nick Roberts, chief executive of Travis Perkins, added: “In the second half of the year we made some difficult decisions in response to the weaker trading environment and we continue to be watchful of market trends, working closely with our customers and suppliers to stay on the front foot.”
