Pete Redfern said the building supplies firm has allowed itself to become “distracted” as the group slashed its profit outlook for the second time in three months after another hefty sales fall
The new chief of Travis Perkins, Pete Redfern, has said that the building supplies company has become ‘distracted’ leading to a second profit warning in just three months following another significant drop in sales.
Mr Redfern, the former chief executive of Taylor Wimpey, took the helm at Travis last month. He has decided to take direct control of the general merchant division, which has been particularly affected by trading difficulties, in addition to his role as group chief executive in an effort to turn things around.
The company, which also owns Toolstation, reported a 6.8% fall in like-for-like sales during the third quarter, with its general merchanting business experiencing an 8.2% decline. Consequently, Travis has revised its full-year underlying operating profit forecast down to approximately £135mafter already reducing it in August to about £150m.
Mr Redfern stated: “It is clear that the group has allowed itself to become distracted and overly internally focused, which has led to the underperformance in recent periods.”
He added, “We now need to get back to a focus on operational execution. My immediate priorities are driving and incentivising branch-led performance and motivation, identifying further ways to make the business run more efficiently, and ensuring that we turn and face the anticipated recovery in the UK construction market.”
“During this important period, I will combine the roles of group chief executive and managing director of the Travis Perkins General Merchant business. This will allow me to shorten reporting lines and develop our new strategy, working closely with the operational leaders of this business as well as the group leadership team.”
Shares in the firm dropped by up to 7% in early Thursday trading following the profit warning. Travis Perkins has been actively streamlining its operation for increased efficiency and cost reduction over the past year, which has included slashing head office and regional branch jobs.
Additionally, it has closed down unprofitable Toolstation outlets in France. It is also in the process of shutting down two Toolstation distribution centres located in Bridgwater, Somerset, and Daventry, Northamptonshire.
