Builder's merchant cites downturn-related costs of restructuring, lease provisions and asset write-offs and says it is set to weather the storm
Full-year profit at builder's merchant and DIY store Travis Perkins slumped 22.5% in 2008, the firm has announced. Profit before tax and charges was 拢202.5m.
The firm said it had 鈥渋ncurred an exceptional charge of 拢56.2m associated with the severe downturn in the construction markets.鈥� The charge, explained the firm, included a cost of redundancy and reorganisation (拢10.5m), property lease provisions (拢39.5m) and asset write-offs (拢6.2m).
Covenantable net debt stood at 拢1.02bn. 鈥淐ovenantable net debt is calculated after eliminating the 拢80.2m impact of an exchange rate movement that is offset by an equal and opposite debit balance in fixed assets,鈥� the firm said.
Geoff Coopers, chief executive, said the group had been prepared for the problems ahead in the 鈥渦nusually challenging鈥� economic environment.
鈥淲e took early action in 2008 to deal with the increasingly tough trading environment and have set our business ready to manage continuing difficult market conditions in 2009,鈥� he said.
The businesses 鈥渃ontinue to outperform competitors,鈥� added Cooper, pointing out that some rivals had closed.
Travis Perkins said the firm had cut net debt by 拢14.9m during 2008 and pledged to reduce it by a further 拢125m in 2009.
The firm confirmed it will not be paying a final dividend.
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