(Reuters) -British building materials supplier Travis Perkins reported a 24% drop in first-half adjusted operating profit on Tuesday, hurt by a prolonged downturn in the UK’s construction market.
High interest rates and fragile consumer confidence amid a sluggish UK economy have weakened commercial and residential construction activity, while also curbing big-ticket home renovation spending.
“The first quarter was difficult, with a continued trend of market share loss and revenue decline in Merchanting”, Chair Geoff Drabble said in a statement.
The company reported an adjusted operating profit of 63 million pounds ($83.6 million) for the six months ended June 30, down from 83 million pounds a year earlier, after excluding discontinued operations.
Travis Perkins expects to deliver a full-year adjusted operating profit, including property profits, broadly in line with average market expectations of 141 million pounds, according to a company-compiled poll.
($1 = 0.7533 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Sumana Nandy)
