GCITravis Perkins reports job cuts after stepping up cost-savings plan
(Sharecast News) - Travis Perkins Plc (TPK) shares rose strongly on Thursday after the builders' merchant and home improvement retailer reported a stabilisation of pricing in the fourth quarter and announced plans to ramp-up its cost-savings programme.
While volumes remained "challenging", trading was in line with management expectations and full-year adjusted operating profits are expected to be £180m for 2023, towards the low end of the £175m to £195m guidance range given in October.
Looking ahead, Travis Perkins said that with market conditions predicted to remain "subdued" in 2024, "management has accelerated plans to continue the transformation of the business".
The company said it has already made cuts to central and regional headcount alongside efficiencies in the supply chain, which will deliver annualised savings of around £35m and result in a one-off restructuring charge of around £15m in 2023.
"These initiatives represent the first steps in a programme of planned changes to the group's operating model, which will focus on simplifying how its businesses interact with each other, reviewing the impact of loss-making activities and maximising the benefit of the group's collective scale."
The stock was up 4% at 769p by 0817 GMT.
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