Group overview

Travis Perkins plc (the Group) is the UK's largest product supplier to the building, construction, and home improvement markets. Having grown primarily through large acquisitions in the last decade, the Group is now focussed on extracting value from those acquisitions by growing organically though investing in more compelling customer propositions, optimising its network and using its scale advantage to improve returns for shareholders. These investments should enable the Group to outperform the market on a sustainable basis, increasing market share and increasing returns. This will ensure the Group continues with its mission to become the first choice distributor of building materials in the UK.

At a glance

£5942m
2015 Revenue
£413m
Adjusted EBITA
20+
Businesses
2028
Branch Numbers
28,000
Employees

The Group’s businesses, across over 2,000 sites, are organised and managed through four divisions.

Performance target setting is managed at a Group level with each business responsible for developing strategic plans to meet those ambitions. As the Group grows, operational decision making is increasingly being devolved to strengthened management teams in each business, allowing every business to better respond to its customers’ needs, manage its costs and capital better and meet the challenges of each market. The business management teams draw on a number of centrally based support teams including property, supply chain, IT, HR, legal and finance.

General Merchanting
Plumbing & Heating
Domestic Installers
Contract installers
Independent Wholesalers
Renewables
Contracts
Consumer

More than 27,000 employees serving trade customers and retail customers from over 2,000 trading outlets throughout the UK.

Travis Perkins PLC is the UK's largest product supplier to the building, construction, and home improvement markets. Having grown primarily through large acquisitions in the last decade, Travis Perkins is now focussed on extracting value from those acquisitions by growing organically though investing in more compelling customer propositions, optimising its network and using its scale advantage to improve returns for shareholders. These investments should enable us to outperform the market on a sustainable basis, increasing market share and increasing returns. This will ensure the Group continues with its mission to become the first choice distributor of building materials in the UK.

Group Mission: The UK’s largest distributor of building materials with room to grow

Whilst the Group is the largest distributor of building materials in the UK, its businesses are not always the first choice for many of its customers, presenting a compelling opportunity to improve and grow. The Group will remain committed to its core expertise as a distributor of building materials. Whilst there are other markets in Europe the Group could enter, the Group has significant opportunity to grow in the UK and this will remain its principal focus in the near term.

  • Customers
  • Pricing
  • Ranging
  • Delivery

Cornerstones

Keeping people safe

Safety will always be at the top of the agenda

Upholding family values

A way of working and treating people

Making decent returns

Creating value for shareholders, employees, customers and suppliers

Supporting our customers

The Group’s business is based on strong relationships

Being the best

Setting the bar high and making employees and customers feel special

Our divisions

General Merchanting

The Group’s core business supplies products for all types of repair, maintenance and improvement projects (“RMI”) as well as new residential and commercial construction. The customer base is largely made up of professional tradesmen, ranging from sole traders to national housebuilders whose key requirements are locally stocked product ranges (immediately available for collection or delivery), access to extended ranges (often delivered direct to site), competitive pricing, credit services and expertise in problem solving.

£1972m
2015 Revenue
£199m
2015 Adjusted EBITA
16%
LAROCE
2
Businesses
813
Branches
2015 2014 Change
Total revenue £1,972m £1,873m 5.3%
Like-for-like growth - - 3.9%
Adjusted operating profit £199m £183m 8.7%
Adjusted operating profit excluding property and one-offs £182m £169m 7.7%
Adjusted operating margin 10.1% 9.8% 30bps
LAROCE 16% 16% -
Branch network 813 772 41

Brands

Travis Perkins

Travis Perkins

Travis Perkins is the UK’s largest chain of builders’ merchants, with an enviable reputation for product quality and customer service. Travis Perkins supplies more than 100,000 product lines to professional tradesmen across the UK.

Despite the long history of the company and its market-leading position, we continue to invest to improve the Travis Perkins business and drive sustainable growth in the future.

Extending the branch network

  • Added 7 additional branches in the first half of 2015
  • 5 to 15 new branches to open annually to access all available catchments

Improving store formats

  • Apply more retail theory to our lightside proposition to increase share of lightside product sales
  • Increase the penetration of own-label products

IT

  • Investing in IT to enable a multi-channel customer Proposition catchments

Developing centralised distribution

  • Two lightside distribution centres make 24,000 lightside products available next-day
  • Three of four heavyside range centres in operation, serving 2/3 of TP branches
  • Fourth heavyside range centre to open late 2016 / early 2017 to give 90% coverage of the UK
  • Heavyside Range centres make 3,000 heavyside products available next-day, 3,000 more available in 48 hours.

Travis Perkins is the UK’s largest chain of builders’ merchants, with an enviable reputation for product quality and customer service. Travis Perkins supplies more than 100,000 product lines to professional tradesmen across the UK.

Despite the long history of the company and its market-leading position, we continue to invest to improve the Travis Perkins business and drive sustainable growth in the future.

Extending the branch network

  • Added 7 additional branches in the first half of 2015
  • 5 to 15 new branches to open annually to access all available catchments

Improving store formats

  • Apply more retail theory to our lightside proposition to increase share of lightside product sales
  • Increase the penetration of own-label products

IT

  • Investing in IT to enable a multi-channel customer Proposition catchments

Developing centralised distribution

  • Two lightside distribution centres make 24,000 lightside products available next-day
  • Three of four heavyside range centres in operation, serving 2/3 of TP branches
  • Fourth heavyside range centre to open late 2016 / early 2017 to give 90% coverage of the UK
  • Heavyside Range centres make 3,000 heavyside products available next-day, 3,000 more available in 48 hours.

Benchmarx

Benchmarx

An example of the Group’s move towards greater organic growth, Benchmarx was launched in 2006 as a trade-only, specialist supplier of kitchens and joinery products. With 139 locations across the UK, Benchmarx continues to increase its share of the trade kitchens market.

Continued growth in branch network

  • 34 new branches opened in 2014
  • 30 to 40 branch openings per year
  • Co-locating within Travis Perkins branches drives increased footfall and improves sales density of existing property

Showroom proposition

  • Interact with end customers through the Benchmarx kitchen design service with an extensive range of quality kitchens, appliances, doors and flooring from leading manufacturers
  • New selection centre allows end customers to mix and match doors, handles and countertops, increasing ownership of the design and the likelihood of a purchase through emotional buy in

An example of the Group’s move towards greater organic growth, Benchmarx was launched in 2006 as a trade-only, specialist supplier of kitchens and joinery products. With 139 locations across the UK, Benchmarx continues to increase its share of the trade kitchens market.

Continued growth in branch network

  • 34 new branches opened in 2014
  • 30 to 40 branch openings per year
  • Co-locating within Travis Perkins branches drives increased footfall and improves sales density of existing property

Showroom proposition

  • Interact with end customers through the Benchmarx kitchen design service with an extensive range of quality kitchens, appliances, doors and flooring from leading manufacturers
  • New selection centre allows end customers to mix and match doors, handles and countertops, increasing ownership of the design and the likelihood of a purchase through emotional buy in
Plumbing & Heating

Plumbing Trade Supplies and City Plumbing Supplies are the main brands in the Division. They supply a wide range of customers including domestic plumbers, independent plumbing merchants, large contractors and local authorities. As well as selling branded products, the Division has developed successful own brand products including a comprehensive range of plumbing and bathroom products under the iflo brand.

£1371m
2015 Revenue
£46m
2015 Adjusted EBITA
6%
LAROCE
9+
Businesses
463
Branches
2015 2014 Change
Total revenue £1,371m £1,353m 1.3%
Like-for-like growth - - (1.4)%
Adjusted operating profit £46m £65m (29.2)%
Adjusted operating profit excluding property and one-offs £46m £48m (4.2)%
Adjusted operating margin 3.3% 4.8% (150)bps
LAROCE 6% 9% 3ppts
Network expansion (no. branches) 463 505 (42)

Brands

City Plumbing

City Plumbing

Providing local plumbers, heating engineers and bathroom installers with a dedicated network of over 350 branches through the City Plumbing Suppliers business.

The majority of branches contain a bathroom showroom showcasing the best branded and own label ranges, operated by a design consultant, helping local tradesmen deliver a complete offer to their customers faster and more efficiently.

In addition, City Heating Spares concessions within City Plumbing branches enable an extension to the range of spares available to customers at short notice. City Plumbing offers a range of renewable heating products and intends to extend this range further in the future.

Providing local plumbers, heating engineers and bathroom installers with a dedicated network of over 350 branches through the City Plumbing Suppliers business.

The majority of branches contain a bathroom showroom showcasing the best branded and own label ranges, operated by a design consultant, helping local tradesmen deliver a complete offer to their customers faster and more efficiently.

In addition, City Heating Spares concessions within City Plumbing branches enable an extension to the range of spares available to customers at short notice. City Plumbing offers a range of renewable heating products and intends to extend this range further in the future.

PTS

PTS

Providing large, value and service focused contract customers with a dedicated nationwide network of over 90 branches through PTS.

With fewer larger branches, PTS is able to offer broader ranges of products in quantities designed to complete large contracts for same or next day delivery. Further improvements are planned to PTS’ account management capability to provide transparency of products ordered, despatched and awaiting delivery and improved billing services.

Providing large, value and service focused contract customers with a dedicated nationwide network of over 90 branches through PTS.

With fewer larger branches, PTS is able to offer broader ranges of products in quantities designed to complete large contracts for same or next day delivery. Further improvements are planned to PTS’ account management capability to provide transparency of products ordered, despatched and awaiting delivery and improved billing services.

Other Brands

Other Brands

Building scale in the P&H division’s focused customer proposition.

  • F & P, Primaflow & Connections – expanding the range of products offered through the reconfigured distribution infrastructure to local independent merchants
  • PlumbNation online – providing local heating engineers with a fixed price, online ordered only boiler and spares delivery service
  • Solfex – providing solar, thermal, photo-voltaic and under-floor heating packages to specialist installers
  • Underfloor Heating Store – providing both trade and retail customers with an extensive range of water and electricity based under-floor heating systems

Building scale in the P&H division’s focused customer proposition.

  • F & P, Primaflow & Connections – expanding the range of products offered through the reconfigured distribution infrastructure to local independent merchants
  • PlumbNation online – providing local heating engineers with a fixed price, online ordered only boiler and spares delivery service
  • Solfex – providing solar, thermal, photo-voltaic and under-floor heating packages to specialist installers
  • Underfloor Heating Store – providing both trade and retail customers with an extensive range of water and electricity based under-floor heating systems
Contracts

The customers of the three contracts businesses, Keyline, BSS and CCF, are typically large developers, main contractors and commercial sub-contractors. The products supplied from the three businesses the Division operates are generally used in large construction projects ranging from new road and rail infrastructure, power generation construction, public service infrastructure such as hospitals and schools, through to commercial and high rise residential construction and refurbishment.

£1214m
2015 Revenue
£83m
2015 Adjusted EBITA
14%
LAROCE
4
Businesses
181
Branches
2015 2014 Change
Total revenue £1,214m £1,072m 13.2%
Like-for-like growth - - 8.5%
Adjusted operating profit £83m £72m 15.3%
Adjusted operating profit excluding property and one-offs £78m £71m 9.9%
Adjusted operating margin 6.9% 6.7% 20bps
LAROCE 14% 13% 1ppt
Network expansion (no. branches) 181 171 10

Brands

The Contracts Division was formed on 1 January 2014, bringing together the three businesses within the Group that supply products to large construction companies, their contractors and sub-contractors. These businesses all track major commercial and infrastructure projects and by bringing them together into one division, it is enabling the Group to offer a comprehensive range of products to customers, and assist them with technical issues in design, specification and installation.

BSS

BSS

BSS is further developing its industrial product offer and improving its logistics efficiency in order to offer continuous improvements in range, service and technical support to its customers.

BSS is further developing its industrial product offer and improving its logistics efficiency in order to offer continuous improvements in range, service and technical support to its customers.

CCF

CCF

In CCF, the strategy is focused on providing national coverage through its branch network, expanding the range of products offered to customers not previously served by the Group and developing a significant presence in commercial interior partitions through its Sektor brand.

In CCF, the strategy is focused on providing national coverage through its branch network, expanding the range of products offered to customers not previously served by the Group and developing a significant presence in commercial interior partitions through its Sektor brand.

Keyline

Keyline

Keyline has a strong nationwide network supplying civils, drainage and heavyside building materials. Keyline is reconfiguring its estate to operate from lower cost sites, with excellent access to the road network, given the high proportion of its customers demanding delivery of products.

Keyline has a strong nationwide network supplying civils, drainage and heavyside building materials. Keyline is reconfiguring its estate to operate from lower cost sites, with excellent access to the road network, given the high proportion of its customers demanding delivery of products.

Consumer

The consumer division supplies domestic building and decorative materials through its store network to DIY and trade customers. It differentiates itself by providing the best value in each of its respective channels through operating lean and efficient business models, superior online propositions, high levels of availability of the brands and products customers demand and fit-for-purpose customer shopping environments.

£1386m
2015 Revenue
£95m
2015 Adjusted EBITA
7%
LAROCE
3
Businesses
571
Branches
2015 2014 Change
Total revenue £1,386m £1,283m 8.0%
Like-for-like growth - - 5.3%
Adjusted operating profit £95m £77m 23.4%
Adjusted operating profit excluding property £93m £77m 20.8%
Adjusted operating margin 6.8% 6.0% 80bps
LAROCE 7% 7% -
Network expansion (no. branches) 571 527 44

Brands

Wickes

Wickes

The strategy is to transform Wickes into the UK’s strongest serious DIY retailer with the ambition of having a Wickes project in every home. This will be achieved by leveraging Wickes’ advantaged position in the market and building on:

  • Wickes’ small store footprint
  • Modest range extensions to the focussed in-store range
  • Reinforcing Wickes value price position
  • Investing in further improvements in the online proposition
  • Selectively opening new stores in underserved catchments

With a focused range and access to buying scale through the Travis Perkins Group, Wickes is able to offer DIY sector leading prices and intends to maintain this advantage.

Wickes plans to continue to expand its network by between 10 and 15 new stores per year and continue to grow sales and gain market share over the medium term.

The strategy is to transform Wickes into the UK’s strongest serious DIY retailer with the ambition of having a Wickes project in every home. This will be achieved by leveraging Wickes’ advantaged position in the market and building on:

  • Wickes’ small store footprint
  • Modest range extensions to the focussed in-store range
  • Reinforcing Wickes value price position
  • Investing in further improvements in the online proposition
  • Selectively opening new stores in underserved catchments

With a focused range and access to buying scale through the Travis Perkins Group, Wickes is able to offer DIY sector leading prices and intends to maintain this advantage.

Wickes plans to continue to expand its network by between 10 and 15 new stores per year and continue to grow sales and gain market share over the medium term.

Toolstation

Toolstation

Toolstation operates from over 200 stores across the UK offering the same range in-store, online and through its catalogue. It aims to provide the lowest price lightside building materials to tradesmen and serious DIY customers and to always be in stock in the project quantities its customers require. If for any reason products are not available it offers next day delivery of those products free of charge.

Toolstation plans to continue to open new shops across the UK to meet growing demand from tradesmen for transparent, fixed price products. Further investments are planned to improve customers’ online experience, provide enhanced click and collect services and modestly extend the range offered to customers.

Toolstation operates from over 200 stores across the UK offering the same range in-store, online and through its catalogue. It aims to provide the lowest price lightside building materials to tradesmen and serious DIY customers and to always be in stock in the project quantities its customers require. If for any reason products are not available it offers next day delivery of those products free of charge.

Toolstation plans to continue to open new shops across the UK to meet growing demand from tradesmen for transparent, fixed price products. Further investments are planned to improve customers’ online experience, provide enhanced click and collect services and modestly extend the range offered to customers.