Travis Perkins, the U.K. building-materials retailer, is expediting its plans to restructure its business in response to sustained difficult market conditions. The company intends to reduce its headcount and implement efficiencies within its supply chain to achieve cost savings of approximately £35 million ($44.4 million).
Streamlining Operations for Greater Efficiency
Travis Perkins has outlined its strategy to streamline operations, which includes reducing central and regional headcount. These measures were initiated in the fourth quarter and are expected to yield annual savings of £35 million. However, the company anticipates a one-off restructuring charge of around £15 million, which will be reflected in its 2023 financial results.
Pursuing Planned Changes for a Simplified Business Approach
As part of its long-term goals, Travis Perkins aims to simplify its operating model and evaluate the impact of any loss-making activities. Additionally, the company seeks to optimize the advantages derived from its collective scale. These measures represent the initial steps in implementing the planned changes within the group.
Challenging Market Conditions Persisted in Q4
While Travis Perkins experienced stabilization in pricing during the quarter preceding the announcement, the company faced ongoing challenges in terms of volume performance.
Upholding Full-Year Target for Adjusted Operating Profit
Travis Perkins reaffirmed its target for adjusted operating profit of approximately £180 million for the full-year period.
Shares of Travis Perkins rose by 4.2% to 771.00 pence at 0814 GMT.