The Group developed and launched a new Code of Conduct during the year, and implemented new policies and minimum standards to support the Group's businesses on matters including diversity and inclusion, people development, sustainable products and services, and responsible sourcing.

Travis Perkins has set the objective of being Net Zero for carbon by 2035 for Scope 1 and 2 emissions, and by June 2021 the Group will set a target for reducing Scope 3 indirect emissions in the creation and use of products throughout the supply chain.

Staying close to colleagues in a year where physical distancing was essential has been one of the Group's top priorities, and weekly "check-in" surveys, with over 35,000 responses during the year, have given clear and timely insight to enable support and training to be directed to colleagues that needed it most, particularly around mental health.

The Group has significantly enhanced its family leave policies, as well as ensuring that our frontline colleagues received pay increases and recognition of their great work with the Merchanting and Plumbing & Heating businesses both now real living wage employers.

The Group continues to invest heavily in its apprenticeship programmes, taking on 783 apprentices in 2020 with plans for an additional 1,000 in 2021. The TP Women, LGBTQ+ and BAME networks are also now active with sponsorship from the leadership team. All of these changes will support further improvements in building a more diverse workforce for the future. Principal risks and uncertainties

The risk environment in which the Group operates does not remain static. The coronavirus pandemic has required an ongoing and agile assessment of risks, uncertainties and issues, adjusting to the development of Covid-19 in real time. The pandemic and its wider economic effects continue to bring uncertainty to our operations and the delivery of our strategic objectives. Even with a mass vaccination programme, this uncertainty is likely to persist.

During the year, the Directors have regularly reviewed the Group's principal risks. Whilst a number of the principal risks faced by the business remain aligned to those listed on pages 40 to 51 of the 2019 Annual Report and Accounts, the Board has made the following key changes to the principal risk set in 2020: ? Pandemic risk, specifically in relation to Covid-19, is recognised as a new principal risk due to the inherent

associated uncertainty. ? Environmental, social, and governance ("ESG") matters have been added as a principal risk as the Group recognises

its impact and potential influence on the environment, the construction industry and wider society. ? Brexit is no longer considered to be a principal risk. Management prepared for, and will continue to implement,

the required changes to customs procedures, product standards and the recruitment of EU citizens, which remain the

more significant areas of Brexit impact for the Group. ? The risks in relation to Portfolio Management and Capital Allocation have been combined.

Accordingly the 2020 Annual Report and Accounts will report risks under the following captions: market conditions, pandemic, changing customer & competitor landscape, supplier risks, portfolio management, change management, ESG, IT systems & infrastructure, cyber threat & data security, people, health, safety & wellbeing and legal compliance.

In relation to the principal risks brought forward from 2019, the Board considers the risk trend to now be increasing in relation to market conditions, supplier risks and the changing customer & competitor landscape. All other risk trends are unchanged. Consolidated income statement

For the year ended 31 December 2020 


GBPm                                                      2020    2019 
Revenue                                                 6,157.5 6,955.7 
Adjusted operating profit (note 6)                      226.7   441.5 
Amortisation of acquired intangible assets              (9.2)   (9.0) 
Adjusting items - operating (note 7)                    (140.4) (200.4) 
Operating profit (note 6)                               77.1    232.1 
Adjusting items - remeasurement of associates (note 7)  -       40.3 
Share of associates' results                            0.5     (4.3) 
Interest on lease liabilities                           (59.0)  (57.0) 
Finance costs (note 10)                                 (37.2)  (35.2) 
Finance income (note 10)                                10.9    4.9 
(Loss) / profit before tax                              (7.7)   180.8 
Adjusting items - deferred tax (note 7)                 (6.4)   (27.1) 
Other tax (note 11)                                     (7.8)   (30.9) 
Total tax                                               (14.2)  (58.0) 
(Loss) / profit for the year                            (21.9)  122.8 
Attributable to: 
Owners of the Company      (22.4) 121.1 
Non-controlling interests  0.5    1.7 
                           (21.9) 122.8 
(Loss)/earnings per ordinary share (note 12a): 
Basic                                           (8.8p) 48.9p 
Diluted                                         (8.8p) 48.4p

All results relate to continuing operations. The accompanying notes form an integral part of these financial statements. Consolidated statement of comprehensive income

For the year ended 31 December 2020 


GBPm                                                                  2020   2019 
(Loss) / profit for the year                                        (21.9) 122.8 
Items that will not be reclassified subsequently to profit and loss: 
Actuarial gain / (loss) on defined benefit pension schemes          113.1  (43.0) 
Income tax relating to other comprehensive income                   (22.2) 8.3 
Items that may be reclassified subsequently to profit and loss: 
Foreign exchange differences on retranslation of foreign operations (2.0)  3.2 
Other comprehensive income/(loss) for the year net of tax           88.9   (31.5) 
Total comprehensive income for the year                             67.0   91.3

All other comprehensive income is attributable to the owners of the Company. Consolidated balance sheet

As at 31 December 2020 


GBPm                                                    2020    2019 
Assets 
Non-current assets 
Goodwill                                              1,358.5 1,359.1 
Other intangible assets                               312.0   332.6 
Property, plant and equipment                         830.4   882.0 
Right-of-use assets                                   1,145.5 1,276.8 
Interest in associates                                -       1.9 
Investments                                           9.2     6.7 
Retirement benefit asset                              178.4   57.5 
Total non-current assets                              3,834.0 3,916.6 
Current assets 
Inventories                                           840.7   937.8 
Trade and other receivables                           892.7   1,239.7 
Tax debtor                                            6.5     - 
Cash and cash equivalents                             505.6   207.9 
Total current assets                                  2,245.5 2,385.4 
Assets of disposal group classified as held for sale  -       138.0 
Total assets                                          6,079.5 6,440.0 Consolidated balance sheet continued

As at 31 December 2020 


GBPm                                                        2020    2019 
Equity and liabilities 
Capital and reserves 
Issued share capital                                      25.2    25.2 
Share premium account                                     545.6   545.6 
Merger reserve                                            326.5   326.5 
Revaluation reserve                                       14.3    14.5 
Own shares                                                (39.5)  (50.8) 
Foreign exchange reserve                                  1.2     3.2 
Other reserve                                             -       (4.1) 
Retained earnings                                         1,840.5 1,722.6 
Equity attributable to the owners of the Company          2,713.8 2,582.7 
Non-controlling interests                                 -       4.4 
Total equity                                              2,713.8 2,587.1 
Non-current liabilities 
Interest-bearing loans and borrowings                     575.7   583.3 
Lease liabilities                                         1,168.3 1,253.6 
Deferred tax liabilities                                  77.2    62.7 
Retirement benefit liability                              -       4.9 
Long-term provisions                                      21.9    8.0 
Total non-current liabilities                             1,843.1 1,912.5 
Current Liabilities 
Lease liabilities                                         158.8   158.7 
Derivative and other financial instruments                1.6     2.5 
Trade and other payables                                  1,304.2 1,613.9 
Tax liabilities                                           -       13.4 
Short-term provisions                                     58.0    60.4 
Total current liabilities                                 1,522.6 1,848.9 
Total liabilities                                         3,365.7 3,761.4 
Liabilities of disposal Group classified as held for sale -       91.5 
Total equity and liabilities                              6,079.5 6,440.0 Consolidated statement of changes in equity

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