Half Year 2024 Travis Perkins PLC Earnings Call Transcript
Key Points
- Travis Perkins PLC (TPRKY) reduced overheads by GBP19 million compared to the prior year.
- The company delivered a strong cash inflow, reducing net debt before leases by GBP81 million in the first half.
- Toolstation UK expanded its operating margin by 130 basis points.
- The strategic review of Toolstation Benelux is expected to deliver a breakeven performance next year.
- The company declared an interim dividend of 5.5p per share, reflecting a policy to pay 30% to 40% of adjusted earnings.
- Revenue for the first half was down 4.4%, translating to GBP2.36 billion.
- Adjusted operating profit for the half decreased to GBP75 million.
- Leverage increased to 2.7 times from 2.1 times last year due to further deterioration in profitability.
- The company expects tough trading conditions to continue in the second half of the year.
- The closure of Toolstation France will incur cash outflows of around GBP20 million to GBP25 million.
Well, good morning, and a warm welcome to all of you in the room and those of you who have joined us via the webcast. I'd like to thank our advisers, Linklaters, for hosting us here today. There are no planned fire alarm tests today. So if the alarm does sound, then please make your way through the double doors to the back of the room that you entered through and down through the foyer and out of the building.
I'm joined in the normal way by Duncan Cooper, our CFO. And together, we will take you through the financial and operational updates for the group for the first half of 2024. Before I start, I'd like to point out that on the front row is our Interim Chair, Jez Maiden, who would be available after the presentation if you'd like to catch up with him.
So let me turn to the update. As we set out in March, our key priority for financial year 2024 was to continue to improve the business and enhance cash generation. And we have made good progress despite persistently challenging market conditions. We have
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