Travis Perkins has recorded a 4.7% drop in group revenue in the year to 31 December, as the building materials distributor highlighted a "continued decline in market volumes".

The firm also stated that price deflation and an underperformance in its merchanting segment also contributed to this drop in revenue.

In 2024, Travis Perkins, which owns the retailer, Toolstation, saw its operating profit fall by 98.8% to £2m.

However, it added that its net debt was reduced by £123m in this time, as a result of "improved stock management" and a "disciplined approach to capital expenditure".

Furthermore, Toolstation UK saw its operating profit increase by 48%, having been driven by "robust sales growth, improved gross margins and supply chain and overhead efficiencies". The firm has closed the French brand and added that the Benelux retailer was on an "accelerated path to profitability".

Chair at Travis Perkins, Geoff Drabble, said: "Since joining the board of Travis Perkins, I have been encouraged by the breadth and depth of our market footprint, the quality and commitment of our people and the strength of our relationships within the construction industry.

"However, it is clear to the management team that there are a number of areas where the business needs to refocus and change the way it operates in order to better serve our customers and effectively support our suppliers.

"Whilst uncertainty remains regarding the strength and timing of a recovery in UK construction activity, with more resources re-deployed into customer-facing roles, the group is now better placed to benefit from returning demand. This will be supported by disciplined capital allocation, focused on upgrading and protecting our core competitive advantages, and a clear customer-focused strategy owned by the leaders of the business."

In its outlook for 2025, the firm said that it had "experienced a mixed start" and that trading conditions in its merchanting businesses had been "challenging".

However, it did note that there appeared to be a more “robust demand backdrop” for some elements of the construction market.

As a result, Travis Perkins expects its adjusted operating profit, excluding property profits, to be "broadly in line" with 2024.

Investment director at AJ Bell, Russ Mould, concluded: "If there was any doubt about the size of the task involved in fixing Travis Perkins then it will have vanished in the wake of an ugly set of results from the builders’ merchant.

"Notably, the company has taken significant impairments in certain areas of the business. The statutory loss also reflects weak demand and pressure on pricing for the business and it badly needs to appoint a successor to former CEO, Pete Redfern, so the transformation of the group can be continued.

"There were some signs to give the market a bit of hope. Net debt reduced significantly as improved stock management and lower capital spending took effect and the Toolstation brand in the UK is showing signs of life."

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