Travis Perkins : Interim Results

Successfully adapted to unprecedented markets

£m (unless otherwise stated)	Note	HY 2020	HY 2019	Change
Revenue		2,781	3,484	(20.2)%
Like-for-like revenue growth(1)		(19.3)%	5.3%	(24.6)ppt
Adjusted operating profit(1)	20a	42	220	(80.9)%
Adjusted earnings per share(1)	11b	1.4p	56.5p	(97.5)%
ROCE(1)	20f	6.4%	10.0%	(3.6)ppt
Covenant net debt(1)	15	22	414	(392)
Dividend per share	12	-	15.5p
Operating (loss) / profit		(92)	62
Total (loss) / profit after tax		(113)	12
Basic (loss) / earnings per share	11a	(45.7)p	4.2p

⁽¹⁾Alternative performance measures are used to provide a guide to underlying performance. Details of calculations can be found in the notes listed

Financial highlights

• Fall in revenue of 20% demonstrated resilience despite the impact of the pandemic, with continuing recovery as lockdown measures eased
• Adjusted operating profit of £42m reflecting shortfall from lower volumes partially offset by actions to reduce and control operating costs
• Restructuring programme underway to reduce overheads in line with the anticipated volume outlook, delivering cost savings of £120m on an annualised basis
• Net adjusting items of £129m, primarily relating to the restructuring programme
• Strong focus on cash and working capital management driving reduction of covenant net debt of £322m from 31 December 2019 to £22m

Strategic and operational progress

• Rapidly adapted the business model to ensure safety and deliver outstanding customer service throughout the pandemic
• Accelerated elements of the strategic plan across digital enablement, customer fulfilment, process simplification and branch network
• Significant improvements in digital platforms across all segments underpinning market outperformance and supporting future growth
• Demerger of Wickes paused until markets become more stable and predictable

Nick Roberts, Chief Executive Officer, commented:

'Throughout the pandemic, the health and safety of our colleagues and customers has been our primary concern. Customer interactions have changed significantly resulting in changes to the way we do business, from increased activity through digital channels through to alterations to our physical store formats in order to maintain safe working practices.

Although our financial performance in the first half of 2020 was impacted by the Covid-19 pandemic, and we have had to undertake a restructuring programme in light of the challenging outlook for the Group's end markets, we have made significant strategic and operational progress against the four strategic priorities we outlined at our full year results in March 2020.

Although considerable uncertainty around the impact of the COVID-19 pandemic remains, the actions we have taken to adapt and innovate in our businesses mean that the Group is well placed to continue to service our customers, support our colleagues, outperform our markets and generate value for our shareholders.'

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