(Alliance News) - Travis Perkins PLC on Thursday said that adjusted operating profit fell in line with guidance for 2023.

The Northampton, England-based FTSE 250 builders' merchant said trading in the fourth quarter of 2023 was in line with management expectations as pricing stabilised compared to the third quarter.

Travis Perkins expects adjusted operating profit to have declined 39% to GBP180 million in 2023 from GBP295 million in 2022. This is in line with previous guidance.

The company said: "Given that market conditions are anticipated to remain subdued into FY24, management has accelerated plans to continue the transformation of the business. This work commenced in Q4 with a reduction in central and regional headcount alongside efficiencies realised within the group's supply chain. These actions will deliver annualised savings of around GBP35 million and result in a one-off restructuring charge of around GBP15 million in FY23."

Looking ahead, it is focused on delivering operational efficiencies and improve financial resilience over the medium term.

Travis Perkins will release its 2023 results on March 5.

Travis Perkins shares rose 6.2% to 785.80 pence each on Thursday morning in London.

By Tom Budszus, Alliance News slot editor

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