FY profit down 16
Sees 2023 profit lower
Shares down 5

LONDON, Feb 28 Reuters Travis Perkins, Britain39;s biggest supplier of building materials, warned of a challenging 2023 as housebuilders slow down projects and homeowners delay improvements due to the country39;s gloomy economic outlook.

Travis Perkins, which sells bricks, timber and new kitchens, as well as equipment for large construction projects, said adjusted operating profit fell 16 last year to 295 million pounds 355 million, behind a consensus forecast of 320 million pounds.

The miss was blamed on restructuring costs from closing 20 smaller branches out of the group39;s 1,500, which Chief Financial Officer Alan Williams said was part of Travis Perkin39;s plan to prepare for a tougher year.

Shares in the 200year old group fell 5 to 993 pence in early trading.

Britain39;s overall construction market is expected to shrink about 5 to 7 this year in volume terms, and Travis Perkins said this would hit its 2023 profit, which is currently forecast to fall by 6 from last year39;s level.

The weakness will come as housebuilders start to slow down projects as fewer people buy new homes, due to concerns about the economy and the jump in borrowing costs, which now stand at 4, their highest since 2008.

That also deters homeowners from carrying out big improvement projects like building an extension or fitting a new kitchen or bathroom.

The bright spot, said Williams, was in public sector projects such as hospital…