(Alliance News) - Travis Perkins PLC talked up its Toolstation UK unit on Thursday, predicting it to shine in a large and fragmented market".
At an investor, the builders' merchant will "set out the pathway" for the Toolstation UK division to achieve revenue of GBP1 billion at a high single digit operating margin by 2027.
"Toolstation provides a market leading customer proposition synonymous with convenience, breadth of range and value leadership, underpinned by a fully integrated digital model. As an integral part of the group, the business provides a highly complementary offer for UK tradespeople with an excellent opportunity to continue to grow share in a large and fragmented market," Chief Executive Officer Nick Roberts said.
"The group's significant investment in Toolstation's network, workforce and infrastructure over recent years has delivered a platform of scale and underpins our confidence in the next phase of the business' journey as we focus on driving growth and profitability. Today, we look forward to providing greater insight into the business and demonstrating how these investments and its differentiated proposition will create value."
Revenue at Toolstation as a whole totalled GBP775 million in 2022, up 1.9% from GBP761 million in 2021. The unit had made an adjusted operating loss of GBP9 million, swinging from profit of GBP22 million. In the UK alone, adjusted operating profit amounted to GBP21 million, halving from GBP42 million.
Travis Perkins shares fell 0.8% to 816.80 pence each in London on Thursday morning.
By Eric Cunha, Alliance News news editor
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Travis Perkins (TPK)