(Reuters) – Travis Perkins, Britain’s biggest supplier of building materials, said on Thursday that first-quarter sales fell by about four percent, reflecting weakness in both the new-build and repair and maintenance sectors.
The success of companies like Travis Perkins is closely linked to the health of the residential property repair, maintenance and refurbishment sector, which is coming under pressure as Britons continue to restrict spending in the face of wider economic problems.
After struggling with subdued demand for much of last year, the UK property market had shown signs of stability in early 2024 due to falling mortgage rates. However, the delay in rate cuts by the Bank of England and macroeconomic problems dampened hopes of a faster recovery.
Travis Perkins said revenues in the trading segment fell 4.4% in the quarter due to subdued volumes, while prices largely stabilised but were still below the year-ago figure.
Earlier this month, Britain’s largest tile retailer Topps Tiles said subdued demand in the domestic repair and maintenance sector, particularly for major projects, would continue into 2024, adding that lower volumes would hit its half-year profit.
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Mrigank Dhaniwala)
