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Annual Report
and Accounts
24
Travis Perkins plc Annual Report and Accounts 2024
INTRODUCTION
Welcome to the 2024 Annual Report
for Travis Perkins plc, the UK’s largest
distributor of building materials
The breadth, reach and scale of the business means it’s in a unique position to supply
the entire UK construction industry and provide customers with the materials and tools
they need for their building projects, when and where they need it.
The Group has a strong heritage and employs over 17,000 colleagues across five
leading businesses which are all number #1 or #2 in their markets.
What’s inside…
Overview At a glance Chair’s statement Market overview Business model Strategy Sustainability
The Group’s breadth,
reach and scale to supply
the entire UK construction
industry
Travis Perkins plc is the
largest distributor of
building materials in
the UK
Geoff Drabble on creating
a simpler, more efficient,
customer-centric business
The Group serves a
UK construction
materials market of
£65bn
Providing customers with
the building materials
they need, when and
where they need it
Growing market-leading
businesses by offering
customers excellent
service
Sourcing responsibly,
operating sustainably
and developing the
next generation
P 4–5 P 6 –7 P 8–9 P 10 P 11 P 1 2 –1 3 P 2 6–58
Travis Perkins plc Annual Report and Accounts 2024
01
GOVERNANCE
FINANCIAL STATEMENTS
OTHER INFORMATION
STRATEGIC REPORT
CONTENTS
Strategic report
2 2024 Highlights
4 Overview
6 At a glance
8 Chair’s statement
10 Market overview
11 Business model
12 Our strategy
14 Key performance indicators (KPIs)
16 Business performance and priorities
22 Financial review
26 Sustainability report
59 Statement of principal risks
and uncertainties
70 Non-financial and sustainability
information statement.
Financial statements
123 Independent Auditor’s report
131 Consolidated income statement
132 Consolidated statement of
comprehensive income
133 Consolidated balance sheet
134 Consolidated statement of
changes in equity
135 Consolidated cash flow statement
136 Notes to the consolidated
financial statements
172 Company balance sheet
173 Company statement of
changes in equity
174 Notes to the Company’s
financial statements
181 Five-year summary
Subject guide
Governance
72 Board of Directors
74 Corporate governance report
78 Section 172 statement
81 Nominations Committee report
84 Audit Committee report
90 Directors’ remuneration report
118 Directors’ report
121 Directors’ statement of
responsibilities
Other information
185 ESG data report (including SASB data)
188 Other shareholder information
Progress
Sustainability
Quote Customers and colleagues
Focus
For more and the latest information
please visit the Group’s website at:
www.travisperkinsplc.co.uk
02 GOVERNANCE
FINANCIAL STATEMENTS
OTHER INFORMATION
STRATEGIC REPORT
Travis Perkins plc Annual Report and Accounts 2024
2024 FINANCIAL HIGHLIGHTS
A challenging trading year with good
progress in Toolstation and a strong
focus on cash generation
Revenue
£4,607m
2023: £4,837m
Adjusted operating profit
£152m
2023: £198m
Net debt/adjusted EBITDA
2.5x
2023: 2.6x
Return on capital employed
5.4%
2023: 6.9%
Dividend per share
14.5p
2023: 18.0p
Loss after tax
£77m
2023: profit after tax of £38m
Graduated apprentices
427
2023: 414
Carbon emissions (kt of CO₂e)
6,530
2023: 7,012
03GOVERNANCE
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OTHER INFORMATION
STRATEGIC REPORT
Travis Perkins plc Annual Report and Accounts 2024
2024 OPERATIONAL HIGHLIGHTS
A challenging trading year
• Group revenue down (4.7)% driven by price
deflation, continued decline in market volumes
and underperformance in the Merchanting
segment.
• Significantly improved cost discipline but lower
trading volumes and price deflation resulted in
full year adjusted operating profit of £152m
(2023: £198m).
• Operating profit of £2m (2023: £161m) reflects
trading performance and adjusting items of
£139m (of which around £20m are cash items)
related to impairments in Staircraft and certain
Merchanting branches and restructuring actions.
Good progress in Toolstation
• Toolstation UK adjusted operating profit up 48%
driven by robust sales growth, improved gross
margins and supply chain and overhead
efficiencies.
• Toolstation France closed and Toolstation
Benelux on accelerated path to profitability.
Strong focus on cash generation and
strengthening the balance sheet
• Net debt before leases reduced by £123m
driven by £64m benefit from improved stock
management and disciplined approach to
capital expenditure.
• £125m raised from investment grade US private
placement notes in March 2025.
04 GOVERNANCE
FINANCIAL STATEMENTS
OTHER INFORMATION
STRATEGIC REPORT
Travis Perkins plc Annual Report and Accounts 2024
OVERVIEW
Focused on providing customers with
everything they need for their building
projects, when and where they need it
Well positioned
The breadth, reach and scale of the Group puts it in a unique position to supply the entire UK construction
industry and be customers’ first choice for building materials and tools.
Strategic opportunities
The Group’s market-leading businesses serve customer needs from well-located
branches, where operations are underpinned by safety and sustainability and
where customers are offered excellent service with a wide range, high availability,
delivery options, finance solutions and value-added services.
05GOVERNANCE
STRATEGIC REPORT
Travis Perkins plc Annual Report and Accounts 2024
OTHER INFORMATION
MEETING CUSTOMER NEEDS LEVERAGING SCALE
• Five leading businesses serving specific
construction markets
• Local empowerment to serve small
tradesmen and the general builder
• Specialist propositions for larger contractors
• Technical capability
• Value-added services
• Nationwide network
• Purchasing power
• Range and availability
• Digital capability
• Main contractor and developer relationships
• Value creation from property portfolio
• Long-term consolidation options
UNDERPINNED BY:
An efficient and sustainable
operating model
• Leading the market in a responsible
manner
• The best people in the industry
• Technical, sustainable solutions fit
for purpose
• Focused capital deployment
The Group’s values:
• We care
• We give our best to be the best
• We’re better together
Doing the right thing
• Safety and wellbeing
• Colleague voice
• Diversity, equity and inclusion
• Reward
• Charity and community
• Legal compliance
FINANCIAL STATEMENTS
OUR STRATEGY FRAMEWORK
06
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OTHER INFORMATION
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Travis Perkins plc Annual Report and Accounts 2024
06
AT A GLANCE
Travis Perkins plc is the largest distributor of
building materials in the UK
Merchanting Toolstation
Travis Perkins plc is a trade-focused group, serving
generalist and specialist trades with products and
services that are designed to help customers grow
their businesses in new and established markets.
The Group’s goal is to deliver exceptional customer
service from advantaged businesses operating from
well-positioned networks on a national scale.
The Group offers a range of high-quality products
and gives customers the choice of a range of
channels, fulfilment options and ways to pay.
Toolstation is #2 in its market in the
UK and offers customers an innovative
lightside proposition from 587 branches
across the UK and 110 in Benelux. With
a wide range of products available
in branch and for next-day delivery,
offering long opening hours, a strong
digital offering and a committed
customer service ethos, Toolstation is
changing the purchasing experience of
trade and DIY customers.
The UK’s market-leading general builders
merchant, offering a destination for heavyside
products complemented by lightside
convenience. Serving general trades and
specialist contractors with the building
materials they need when and where they
need them from 577 national locations.
Contains a comprehensive tool hire offer,
innovative Managed Services solutions and
a kitchen design and supply offer, branded
as Benchmarx.
Market-leading supplier of commercial and
industrial heating and cooling solutions,
supplying specialist contractors with a
wide variety of products from 69 branches
and two distribution centres. BSS offers
customers a tailored tool hire service and
includes TF Solutions, a specialist provider
of air-conditioning products and heat pumps.
A civils specialist, Keyline is #1 in its market and
supports housebuilders, groundworkers and
infrastructure contractors to build and redevelop
facilities which are vital to the nation. Delivering
heavy products from 41 branches in a safe and
accurate manner, Keyline works as a partner to
its specialist customers and is developing new
areas of expertise in roads and highways.
CCF distributes insulation and interior building
products from 37 branches to contractors
throughout Great Britain. #2 in its market, CCF
supports the construction and renovation of
both domestic and commercial buildings with
service and specialist knowledge.
Travis Perkins plc Annual Report and Accounts 2024
Branches
c.1,400
Employees
c.17,000
Serving the construction industry
200+ years
07
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STRATEGIC REPORT
Geographic split
Payment mix
Cash
28%
South-East 30%
Midlands 25%
North and Scotland 23%
Wales and South-West 20%
Europe 2%
Our market footprint, the quality
of our people and the strength
of our relationships, puts us in a
strong position to be our trade
customers’ first choice.
Geoff Drabble
Chair
Credit
72%
Channel
40%
Product mix
60%
Heavyside 47%
Lightside 22%
Plumbing & Heating 20%
Timber 11%
Collect
Deliver
08
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Travis Perkins plc Annual Report and Accounts 2024
CHAIR’S STATEMENT
Leveraging excellence to benefit customers
It was a real privilege to be appointed to
the Board of Travis Perkins plc last year, as
I see this as a business with many inherent
strengths and great potential. However, it
is also a business that has been through a
period of significant change.
The immediate task is to align all parts of the
business to a clear and achievable strategy
that prioritises customer service. The key
to this will be our people, and I would like to
take this opportunity to thank them for their
continued contribution during what has clearly
been an unsettling period.
Our objective is to leverage excellence in all
parts of the business and work towards a
vision where we create flexible, responsive
and entrepreneurial local businesses
supported by world class central functions
that differentiate us from our competitors, and
where we provide value added services to our
customers.
There have been some short-term tactical
missteps in the past, but the fundamental
building blocks that attracted me to the
business remain in place. We have great
brands, capable people, a unique portfolio
of businesses and the best locations in the
industry.
I was sorry to see Pete Redfern’s brief but
promising tenure as CEO being brought to a
premature conclusion due to ill health, and he
left with our best wishes for the future. On a
personal level, and on behalf of the Board, I
recognise the contribution he made to
re-energise the business.
Work by the Nominations Committee to
search for a successor CEO is underway.
In the meantime I am fully committed to
working closely with the executive and
leadership teams to ensure the stability and
continuity of the business, and that we remain
focused on progressing the actions that are in
flight to improve performance and enhance
profitability.
Uncertainty remains regarding the
strength and timing of a recovery in UK
construction activity. Irrespective of this, we
have the opportunity and ability to make
improvements in a number of areas that
are within our control. We have a strong
balance sheet that will provide security for the
changes that we need to make; changes that
will make our businesses more responsive
and bring them closer to our customers. This,
combined with the breadth, reach and scale of
our Group, puts us in a strong position to be
our trade customers’ first choice.
I am really excited at the prospect of working
with the Board and the leaders in this
business to achieve this, and by rediscovering
our competitive strengths, I am confident
that we will create a pathway to improving
profitability and providing attractive returns
for shareholders in the medium and
long-term.
Finally, on behalf of the Board, I would like
to say a big thank you to our Non-executive
Director, Jez Maiden, for his service as Interim
Chair in 2024. During a year of several Board
leadership changes, Jez provided business
continuity and great support during the
recruitment process. Special thanks also
go to our customers and suppliers, and I
look forward to strengthening our trading
relationships with them as we move the
business forward.
Geoff Drabble
Chair
31 March 2025
By rediscovering our competitive strengths,
I am confident that we will improve
profitability and provide attractive returns
for shareholders in the medium term.
Geoff Drabble
Chair
09
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Travis Perkins plc Annual Report and Accounts 2024
10 GOVERNANCE
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OTHER INFORMATION
STRATEGIC REPORT
Travis Perkins plc Annual Report and Accounts 2024
MARKET OVERVIEW
The market for building materials in the UK coming through
distribution channels is £65bn*
* Source - BUILDERS MERCHANTS MARKET REPORT UK 2024-2028, September 2024.
Private domestic and new build Commercial and industrial
Growth drivers:
• Government housing targets
• A shortage of housing in the UK
• Growth in the population
• Continued desirability of house ownership
• Upcoming building regulation change
Growth drivers:
• Refurbishment of existing commercial buildings as tenants move
to smaller, Grade A office spaces
• Greater demand for energy efficient buildings
• Cladding remediation on commercial buildings
• Increase in large projects such as gigafactories and data centres
19%
Market mix
15%
Group revenue mix
26%
Market mix
24%
Group revenue mix
Private domestic repair, maintenance and improvement (“RMI”) Public sector
Growth drivers:
• Government policy
• Building and refurbishment of the public sector estate
• Retrofit opportunities for energy efficiency
• Demand for social housing
Growth drivers:
• The age and quality of UK housing stock
• Government schemes to boost energy efficiency
• Energy efficiency retrofit trends
17%
Market mix
35%
Group revenue mix
38%
Market mix
26%
Group revenue mix
The market mix and market size figures are based on 2024 data. The Group mix is based on internal estimates.
11GOVERNANCE
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Travis Perkins plc Annual Report and Accounts 2024
BUSINESS MODEL
People are at the heart of the business model
The Group’s businesses bring together customers, suppliers and colleagues into mutually-beneficial relationships which can last
many years. The Group invests time and resources with all of its stakeholders and is mindful of the impact it has on the environment.
Inputs
Competitively-advantaged resources and relationships.
Processes
Converting the inputs, demands and requirements of
stakeholders to generate valued outputs.
Outputs
Value for all.
Customers
• Strong customer relationships
• Local empowerment to serve small trade and the general builder
• Specialist propositions for larger contractors
• Technical capability and value-added services
Resources
• A 200-year heritage and businesses that are #1 or #2 in their market
• A national branch and supply chain network
• Digital platforms to improve the customer experience
• 17,000 colleagues with technical knowhow and industry experience
Suppliers
• Partnership relationships with suppliers, which work for the
success of all
Underpinned by
Responsible and sustainable approach (See page 26) Sound corporate governance (See page 71) Robust risk management (See page 59)
Stakeholders
• Fulfilled customers
• Satisfied shareholders
• Engaged colleagues
• Valued suppliers
The Group
• Collaborate, specify and quote
• Negotiate, convert and sell
• Range and source
• Procure
• Fulfil, collect and deliver
• Provide and manage credit
12 GOVERNANCE
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STRATEGIC REPORT
Travis Perkins plc Annual Report and Accounts 2024
OUR STRATEGY
The strategy of the Group is to grow the share of its
market-leading businesses by offering customers
attractive propositions and excellent service
Proposition
Priorities and initiatives
Customers Large Large to small Small
Strategic priorities
Price Variable and
framework
Variable Fixed
Range Variable Part-mandated Mandated
Strategic initiatives
Delivered 88% 58% 10%
• Technical development
• Data-led sales approach
• Operational efficiency
• Network investment
• Customer, colleague and
supplier propositions
• Being the distributor of choice
• TF Solutions growth
• Leading on infrastructure
• Hire
• Managed service
• Benchmarx
• General builder proposition
• Network roll-out
• Ongoing digital development
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Travis Perkins plc Annual Report and Accounts 2024
14 GOVERNANCE
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OTHER INFORMATION
STRATEGIC REPORT
Travis Perkins plc Annual Report and Accounts 2024
KEY PERFORMANCE INDICATORS (KPIs)
Operational
Adjusted operating profit
£353m
£295m2022
2021
£128m
£198m
£152m
2020
2023
2024
Definition (note 2b)
Profit before tax, financing charges and
income, amortisation of acquired
intangibles and adjusting items.
Reason
Adjusted operating profit excludes adjusting
items and the amortisation of intangible
assets arising on the acquisition of a
business, so management can monitor the
Group’s underlying performance.
Sales growth
(10.8)%
(3.2)%
8.9%
2021
24.0%
2022
2020
2023
2024
(4.7)%
Definition (note 1b)
Total revenue growth.
Reason
Sales growth helps management monitor
the performance trend of the business and
gives a good indication of its overall health
compared to its competitors. Total sales
growth is not distorted by actions such as the
consolidation of branches.
Financial
Leverage ratio
1.2x
1.8x2022
2021
2.0x
2.6x
2.5x
2020
2023
2024
Definition (note 25)
The ratio of net debt to earnings before
tax, interest, depreciation, amortisation and
adjusting items (“Adjusted EBITDA”).
Reason
The leverage ratio is an indicator by
management and lenders of the Group’s
ability to support its debt. The Group has
a target of 1.5x–2.0x.
Free cash flow
£65m
£95m2022
2021
£241m
£62m
£109m
2020
2023
2024
Definition (note 24)
Net cash flow before dividends, freehold
property purchases and disposals, pension
deficit repair contributions, adjusting and
discontinued cash flows and the issuance
and repayment of debt.
Reason
The Group needs to generate strong free
cash flows to enable it to invest, expand
its operations and pay dividends to
shareholders. Freehold investments are
financed by property disposals and enable the
Group to access the best property locations.
Return on capital employed
14.1%
10.8%2022
2021
5.3%
6.9%
5.4%
2020
2023
2024
Definition (note 26)
Adjusted operating profit divided by the combined value of
balance sheet debt and equity excluding pension assets.
Reason
This ratio allows management to measure how effectively
capital is used in the business to generate returns for
shareholders.
15GOVERNANCE
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Travis Perkins plc Annual Report and Accounts 2024
Non-financial
Accident frequency rate
5.6
4.72022
2021
5.4
3.9
3.6
2020
2023
2024
Definition
The number of lost-time incidents
(“LTIs”) per million hours worked.
Reason
Keeping people safe is the Group’s first
priority. This ratio allows management
to measure progress in ensuring a
safe workforce.
Carbon emissions
9,111
8,2942022
2021
8,546
7,012
6,530
2020
2023
2024
Definition
Total Scope 1, 2 and 3 carbon emissions
(kilotonnes of CO₂e).
Reason
The Group has a responsibility to take action
to prevent the worst impacts of climate
change. This measure allows management
to measure progress in the decarbonisation
of the business. This includes Scope 3
in addition to Scope 1 and 2, as Scope 3
represents over 99% of the Group’s carbon
footprint and the Group has set a target
of reducing Scope 3 emissions by 63% by
2035 from a 2020 baseline.
Carbon emissions and accident frequency
rate are two key sustainability metrics
See page 26 for more information
16
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OTHER INFORMATION
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Travis Perkins plc Annual Report and Accounts 2024
BUSINESS PERFORMANCE AND PRIORITIES
2024 performance
2024 was a challenging year for the Group with
revenue of £4,607m down (4.7)% year-on-year,
driven by the Merchanting segment through a
combination of price deflation, reduced demand
across the UK construction market and increased
competitive intensity. Toolstation continued to
make good progress with robust revenue growth
in both the UK and Benelux reflecting ongoing
maturity benefits.
Adjusted operating profit excluding property profits
of £141m was £(42)m, or (23)%, lower than prior
year. Around £(39)m of the profit decline resulted
from lower sales volumes whilst approximately
£(56)m was attributable to lower gross
margins, driven by price deflation and increased
competitive intensity.
Against this backdrop management took actions
to reduce total overheads by £53m compared to
prior year. Restructuring actions taken at the end of
2023 reduced overheads by £35m with a further
£36m of savings on discretionary spend and £9m
savings from the strategic review actions taken in
Toolstation Benelux. Offset against this was around
£(27)m of overhead inflation, primarily on payroll
and property costs.
Building on the Group’s inherent strengths
The Group has strong fundamentals built up over
decades as the largest UK building materials
distributor, namely:
• A comprehensive UK network backed by freehold
ownership of key trading sites.
• Experienced and high-quality teams across
thebusiness.
• Long-established customer and supplier
relationships
• A unique portfolio of brands.
• Significant earnings growth potential from
Toolstation as the business matures.
Attractive long-term structural drivers
The Group operates in a market with attractive long-
term structural drivers - in particular a shortage of
UK housing, an ageing UK housing stock and a need
to decarbonise the UK’s built environment. These
structural drivers have taken greater prominence in
the key priorities and policy setting of the new Labour
Government, which has set ambitious housebuilding
targets and see construction-led activity as a major
pillar to kickstarting economic growth.
£m (unless otherwise stated) Note 2024
2023
(re-presented
1
) Change
Revenue 1 4,607 4,837 (4.7)%
Adjusted operating profit excluding
property profits¹ 2a 141 183 (23.0)%
Adjusted operating profit¹ 2a 152 198 (23.2)%
Adjusted earnings per share¹ 20b 36.6p 54.4p (32.7)%
Return on capital employed¹ 26 5.4% 6.9% (1.5)ppt
Net debt / adjusted EBITDA¹ 25 2.5x 2.6x 0.1x
Ordinary dividend per share 21 14.5p 18.0p (19.4)%
Operating profit 2 161 (98.8)%
Profit / (loss) after tax (77) 38 (302.6)%
Basic earnings / (loss) per share 20a (36.6)p 18.1p (302.2)%
1 For continuing businesses only. The Toolstation France business is treated as a discontinued operation.
17
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Travis Perkins plc Annual Report and Accounts 2024
However, the Group has become distracted
in a challenging market
The Group’s key end markets have seen a progressive
deterioration in demand over the past three years
driven by high inflation, rising interest rates and
weak consumer confidence. During this period, the
Group’s approach to capital allocation and overhead
management has diluted returns, exacerbated profit
decline and resulted in leverage increasing beyond
the Group’s target range. During this period, the
business has seen significant personnel change at
all levels of the business, particularly in some key
customer-facing roles.
Building an entrepreneurial, customer-centric
business
Over recent years, the Group has become too
centralised which has increased costs and complexity.
Work is now underway to transform the operating
model to create a business based around empowered
local branches, backed by high quality support
functions providing insight and driving the benefits
of national scale. This cultural shift will bring the
business closer to its customers and enhance
service levels.
Balance sheet
The Group has made good progress on actions to
strengthen the balance sheet during the year, with
overall net debt reducing by £77m and net debt
before leases reducing by £123m. Accordingly,
despite the further reduction in adjusted operating
profit, net debt / adjusted EBITDA has also reduced
to 2.5x. Management remain focused on returning
leverage to the Group’s target range of 1.5 - 2.0x as
soon as is practically possible.
Dividend
The Board is recommending a final dividend of
9.0 pence per share (2023: 5.5 pence per share)
to give a full-year dividend of 14.5 pence per
share (2023: 18.0 pence per share), in line with
the Group’s policy to pay a dividend of 30-40%
of adjusted earnings. The dividend will be paid on
29 May 2025 to shareholders on the register as at
close of business on 22 April 2025.
Current trading and outlook
The Group has experienced a mixed start to 2025.
Trading conditions have continued to be challenging
in our Merchanting businesses with pricing
now stabilised but volumes in modest decline.
By contrast, Toolstation has started the year more
positively and continues to deliver good growth.
It is encouraging to see a more robust demand
backdrop for some elements of the construction
market. However, the pace and rate of an overall
recovery in construction activity levels remains
uncertain and will likely need further cuts to interest
rates and an uplift to consumer confidence levels to
stimulate a meaningful increase in demand.
In recognition of this backdrop and the operational
turnaround challenges the Group currently faces,
the Board expect FY25 adjusted operating profit,
excluding property profits, to be broadly in line
with FY24.
The Board remains confident in the inherent
strengths of the Group and its market-leading
position in the building materials sector. By investing
in its core competitive advantages with a clear
focus on its customers’ needs, the Group will start
to deliver an improved financial performance and
create attractive returns for shareholders over the
medium-term.
Technical guidance
The Group’s technical guidance for 2025 is as follows:
• Expected ETR of around 30% on UK generated
profits.
• Base capital expenditure of around £80m.
• Property profits of around £3m.
Implementation of new Oracle finance system
On 1 July 2024, the Group implemented a new
Oracle Financial ERP system which represented
a significant step forward for the Group in
modernising its core technology platform. Oracle
has strengthened financial controls, enabled new
standardised processes and enhanced stock
visibility and reporting, all of which will deliver
long-term benefits for the Group.
With this being the first major systems upgrade
for several decades, the Group has inevitably
experienced some challenges with the adoption
of new processes. This has translated into some
limited customer facing challenges in branch and
disruption associated with some supplier payments
and collection of customer debt, which in turn has
had an impact on trading operations. It has also
resulted in a working capital outflow during the year,
estimated to be around £50m.
The Group is confident that as these processes
become familiar and are readily adopted that this
disruption will ease and the working capital position
will normalise throughout 2025.
Adjusting items
£m 2024
2023
(re-presented
1
)
Branch impairment 63 –
Staircraft impairment 33 –
Supply chain
consolidation 26 6
Group restructuring 11 11
Benchmarx closures 6 10
Total 139 27
The 2024 branch-level impairment review
identified 209 branches where the carrying value
of the branch’s assets was below the value of
the discounted future cash flows generated from
those assets. The total impairment recognised in
relation to these branches is £63m. In the majority
of cases the branches are expected to deliver a
positive contribution in 2025 with the vast majority
delivering a positive contribution in the future,
based on cautious financial planning assumptions.
Management’s view is that this reflects the under-
utilisation of these assets during the period under
review as a result of cyclically depressed market
volumes and that these branches will remain
an important part of the Group’s future network
strategy. An impairment of £33m has been
recognised following the annual impairment review
of the Staircraft business as a result of challenging
trading conditions in its markets.
The supply chain consolidation charge relates to
the closure of a number of distribution centres
in Toolstation, Benchmarx and the Group timber
supply chain. The costs relate primarily to stock
write-downs, dilapidations and other property-
related costs. Restructuring charges relate to actions
taken to reduce central and regional headcount.
The Benchmarx closures charge reflects the costs,
primarily redundancy, of closing 39 standalone
branches in February 2024. The prior year charge
reflected fixed asset impairments associated with
those sites.
Property
The Group generated property profits of £11m in the
year, with £62m of cash proceeds.
1 For continuing businesses only. The Toolstation France business
is treated as a discontinued operation.
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Travis Perkins plc Annual Report and Accounts 2024
BUSINESS PERFORMANCE AND PRIORITIES CONTINUED
Merchanting
2025 priorities
• Focused leadership in all businesses
• Reinvestment in branch resources
• Remove barriers to delivering excellent customer service
• Support functions focused on providing insight and driving the benefits
of national scale
Revenue
£3,786m
2023: £4,036m
Adjusted operating profit
£149m
2023: £212m
The Group’s Merchanting businesses saw revenue
fall by (6.2)% in the year as a result of price deflation
and declining volumes, arising from the depressed
levels of UK construction activity and an intensely
competitive backdrop. Adjusted operating profit
reduced by (29.7)% to £149m, reflecting the high
operational gearing of these businesses. Operating
profit declined to £20m from £199m due to these
factors and adjusting items of £133m relating to
impairments in Staircraft and certain Merchanting
branches and restructuring actions.
Price deflation, a significant factor in H1 due to
the rollover of prior year timber price reductions
in particular, eased in H2. However, volumes
worsened as the year progressed, in part driven by
project postponements caused by general election
uncertainty and the delayed government budget.
The private domestic RMI market, the Merchanting
segment’s largest end market which is primarily
serviced by the Group’s General Merchant business,
remained depressed throughout the year. The
private domestic new-build market, primarily
serviced by Keyline and CCF working with national
and regional housebuilders, also saw another
notable drop in activity.
The Merchanting segment’s other end markets
– commercial, industrial and public sector –
saw mixed levels of demand with uncertainty
surrounding government departmental budgets
persisting until after the late October budget
announcement. This created hesitancy to invest and
impacted demand in the second half of the year,
particularly in BSS which serves these markets.
Six new Merchant branches were opened during
the year as the Group continues to selectively add
new branches to its network. Five of the sites were
new General Merchant branches, serving major
conurbations including Leeds, Edinburgh, Derby and
Coventry, with a new CCF branch also opened in
Norwich.
51 Merchant branches were closed during the year
with the majority being 42 Benchmarx standalone
branches. The Benchmarx decision continues
the Group’s strategy of offering an integrated
proposition within destination General Merchant
branches. The remaining nine branches closed
comprised eight General Merchant branches and
Keyline Kirby with these sites deemed to be poorly
located or requiring significant investment and
where trade could be transferred to an alternative
nearby branch.
2024 2023 Change
Revenue £3,786m £4,036m (6.2)%
Adjusted
operating
profit £149m £212m (29.7)%
Adjusted
operating
margin 3.9% 5.3% (140)bps
ROCE 7% 9% (2)ppt
Branch
network 724 769 (45)
Travis Perkins plc Annual Report and Accounts 2024
GOVERNANCE
FINANCIAL STATEMENTS
OTHER INFORMATION
STRATEGIC REPORT
19
Travis Perkins
Norwich was one
of 6 new Merchant
branches opened
during the year.
20
GOVERNANCE
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OTHER INFORMATION
STRATEGIC REPORT
Travis Perkins plc Annual Report and Accounts 2024
BUSINESS PERFORMANCE AND PRIORITIES CONTINUED
Toolstation
2025 priorities
• Continued Toolstation UK gross margin progress with focus on
increasing own brand penetration
• Further Toolstation UK supply chain efficiencies
• Continued expansion of Toolstation UK with c.20 new branches
• Drive Toolstation Benelux strategic plan actions to narrow losses further
Revenue
£821m
2023: 801m
Branch network
697
2023: 689
2024
2023
(re-presented
1
) Change
Revenue £821m £801m 2.5%
Life-for-like
growth 1.9% 3.4%
Adjusted
operating
profit - UK £34m £23m 47.8%
Adjusted
operating
profit - Europe £(13)m £(20m) 35.0%
Adjusted
operating
profit - Total £21m £3m 600.0%
Adjusted
operating
margin 2.6% 0.4% 220bps
ROCE 4% 1% 3ppt
Store network
(UK) 587 570 17
Store network
(Europe) 110 119 (9)
UK
Toolstation UK continued to make good progress
during the year with revenue increasing by 2%,
reflecting continued maturity benefits and a modest
pricing uplift. A net 17 stores were added during
the year with 19 new stores, three relocations and
two closures. A similar number of store additions is
expected for 2025.
Adjusted operating profit increased by £11m
(47.8%) year-on-year driven by a combination of
sales growth, gross margin benefits from improved
purchasing and product mix and supply chain
efficiencies.
Benelux
Like-for-like sales in Benelux increased by 11% as
the business continues to mature. However, due to
rapid growth over recent years, the business has
not been effective in converting strong sales growth
into improved profitability and hence management
conducted a full strategic review of the business
during the first half of the year.
The review concluded that the business had good
long-term prospects but needed to take near-term
actions to accelerate the path to profitability. These
actions included the closure of 11 underperforming
branches, a 15% reduction in central headcount,
improving procurement capability and optimising
supply chain capacity. As a result of these actions,
adjusted operating losses reduced to £(13)m and are
expected to narrow significantly again in 2025.
France
Following a strategic review early in the year,
management concluded that Toolstation France
did not have a credible pathway to becoming
a profitable standalone business. The capital
requirements to reach the necessary scale in
the French market, given the operation’s relative
immaturity, and the differing customer behaviours
to Benelux and the UK, led management to pursue
divestment options with established domestic
partners in the French market. When it became
clear that there was no overall buyer, management
took the difficult decision to close the French
business. That process is now complete with 8
stores having been sold to Quincaillerie Angles
as a going concern and the 43 remaining stores,
alongside supply chain and head office functions,
closed by the end of 2024.
1 For continuing businesses only. The Toolstation France business
is treated as a discontinued operation and excluded from the
re-presented 2023 figures.
21
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Travis Perkins plc Annual Report and Accounts 2024
22 GOVERNANCE
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Travis Perkins plc Annual Report and Accounts 2024
FINANCIAL REVIEW
Volume, price and mix analysis
Merchanting Toolstation Group
Price and mix (2.3)% 1.4% (1.7)%
Like-for-like volume (4.5)% 0.5% (3.6)%
Like-for-like revenue growth (6.8)% 1.9% (5.3)%
Network changes (0.6)% 0.3% (0.5)%
Trading days 1.2% 0.3% 1.1%
Total revenue growth (6.2)% 2.5% (4.7)%
Quarterly revenue analysis
Total revenue* Like-for-like revenue
2024 2023 2024 2023
Merchanting
Q1 (6.0)% (3.2)% (4.2)% (4.2)%
Q2 (5.7)% (5.6)% (7.9)% (5.2)%
H1 (5.8)% (4.5)% (6.1)% (4.8)%
Q3 (7.1)% (3.4)% (8.2)% (2.9)%
Q4 (5.8)% (5.1)% (6.8)% (5.2)%
H2 (6.5)% (4.2)% ( 7.6)% (4.1)%
FY (6.2)% (4.4)% (6.8)% (4.4)%
Toolstation
Q1 0.9% 7.6% (1.2)% 3.5%
Q2 3.6% 9.0% 2.4% 6.4%
H1 2.3% 8.3% 0.6% 5.0%
Q3 3.0% 7.2% 2.2% 4.1%
Q4 2.2% 0.8% 4.3% (0.3)%
H2 2.6% 3.8% 3.3% 1.8%
FY 2.5% 6.0% 1.9% 3.4%
Total Group
Q1 (4.9)% (1.7)% (3.5)% (3.3)%
Q2 (4.2)% (3.5)% (6.2)% (3.5)%
H1 (4.5)% (2.6)% (4.9)% (3.4)%
Q3 (5.5)% (1.9)% (6.6)% (2.0)%
Q4 (4.3)% (4.1)% (4.8)% (4.4)%
H2 (5.0)% (3.0)% (5.8)% (3.1)%
FY (4.7)% (2.8)% (5.3)% (3.2)%
* Trading day adjusted
Revenue analysis
The Merchanting businesses saw a continuation of
challenging trading conditions across the year, with
the rollover of commodity price deflation – notably
timber – leading to pricing being down (3.6)% in
the first half. In the second half, pricing pressures
eased as commodity prices stabilised. However,
volumes deteriorated as uncertainty created by the
general election and subsequently delayed inaugural
government budget led to project postponements.
The Merchanting businesses also faced increased
competitive intensity in the second half of the year.
Toolstation continued to gain market share across
the year in both the UK and Benelux with volume
growth, despite a declining market, and robust
pricing. Maturity benefits from the investment in the
store network and customer proposition continue to
come through.
23GOVERNANCE
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OTHER INFORMATION
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Travis Perkins plc Annual Report and Accounts 2024
Operating profit
£m 2024
2023
(re-presented
1
) Change
Merchanting 149 212 (29.7)%
Toolstation 21 3 600.0%
Unallocated costs (29) (32) 9.4%
Adjusted operating profit
excluding property profits 141 183 (23.0)%
Property profits 11 15 (26.7)%
Adjusted operating profit 152 198 (23.2)%
Amortisation of acquired
intangible assets (11) (10)
Adjusting items (139) (27)
Operating profit 2 161
Finance charge
Net finance charges were in line with prior year at £41m (see note 6
for details).
Taxation
The tax charge before adjusting items was £34m (2023: £44m) giving
an adjusted effective tax rate (adjusted ‘ETR’) of 30.4% (standard rate:
25.0%, 2023 actual: 31.5%). The adjusted ETR rate is substantially
higher than the standard rate due to the effect of expenses not
deductible for tax purposes and unutilised overseas losses.
The statutory tax charge for 2024 was £2m (2023: £32m) giving
an effective tax rate of (5.7)% (2023: 26.3%). This is lower than the
adjusted ETR as a result of the tax effect of the impairment of goodwill.
Earnings per share
The Group reported a total loss after tax of £(77)m (2023: profit
of £38m) resulting in basic loss per share of (36.6) pence (2023:
earnings per share of 18.1 pence). Diluted loss per share was (36.6)
pence (2023: earnings per share of 17.8 pence).
Adjusted profit after tax was £77m (2023: £115m) resulting in adjusted
earnings per share of 36.6 pence (2023: 54.4 pence).
Cash flow and balance sheet
Free cash flow
£m 2024
2023
(re-presented
1
) Change
Adjusted operating profit
excluding property profits 141 183 (42)
Depreciation of PPE and other
non-cash movements 96 99 (3)
Change in working capital 6 (23) 29
Net interest paid
(excluding lease interest) (20) (25) 5
Interest on lease liabilities (30) (26) (4)
Tax paid (21) (41) 20
Adjusted operating cash flow 172 167 5
Capital investments
Capex excluding freehold
transactions (64) (107) 43
Proceeds from disposals
excluding freehold transactions 1 2 (1)
Free cash flow 109 62 47
The Group made strong progress on cash generation with free
cash flow £47m higher than the prior year despite a reduction of
£(42)m in adjusted operating profit excluding property profits. Key to
this improvement was a disciplined approach to capital expenditure
and a comprehensive review of stock management practices which
resulted in a £64m reduction in stock holding. This was offset by a
£(58)m working capital outflow related to debtors and creditors, the
majority of which resulted from the temporary impact of process
changes following the Oracle finance system implementation.
Capital investment
£m 2024
2023
(re-presented
1
)
Strategic 21 49
Maintenance 39 52
IT 4 6
Base capital expenditure 64 107
Freehold property 12 33
Gross capital expenditure 76 140
Disposals (63) (68)
Net capital expenditure 13 72
Base capital expenditure was reduced by £43m during the year as
a result of a more disciplined approach, predominantly on strategic
investment. As part of the Group’s prioritisation of reducing leverage,
freehold development and acquisitions were £51m lower than
the proceeds of freehold disposals, which were primarily sale and
leaseback transactions.
Uses of free cash flow
£m 2024 2023 Change
Free cash flow 109 62 47
Investments in freehold property (12) (33) 21
Disposal proceeds from freehold
transactions 62 67 (5)
Dividends paid (23) (82) 59
Cash payments on adjusting items (20) (11) (9)
Drawdown of borrowings – 100 (100)
Repayment of bonds – (180) 180
Other (16) (15) (1)
Change in cash and cash
equivalents 100 (92)
Note: Cashflows related to Toolstation France are classified above as “Other”.
Cash and cash equivalents increased by £100m driven by strong free
cash flow, a planned reduction in freehold property investment and
adherence to the Group’s policy on dividend distribution.
In the prior year, the balance of the 2023 bond (£180m) was repaid
and largely replaced with £100m of US private placement notes.
1 For continuing businesses only. The Toolstation France business is treated as a discontinued operation and excluded from the re-presented 2023 figures.
24 GOVERNANCE
FINANCIAL STATEMENTS
OTHER INFORMATION
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Travis Perkins plc Annual Report and Accounts 2024
FINANCIAL REVIEW CONTINUED
Net debt and funding
£m
31 Dec
2024
31 Dec
2023 Change Covenant
Net debt £845m £922m £77m
Net debt/adjusted EBITDA 2.5x 2.6x 0.1x <4.0x
Net debt before leases £191m £314m £123m
Net debt before leases/
adjusted EBITDA 0.6x 0.9x 0.3x
Note: All covenant metrics measured post IFRS16. In accordance with the Group’s debt covenant
definitions, the comparative year has not been re-presented to exclude the result of the Toolstation
France business.
Net debt before leases reduced by £123m driven primarily by
improvements in stock management, a disciplined approach to capital
expenditure and a reduction in the dividend. Additionally, a legacy
pension SPV has been unwound, reducing net debt by £25m, as part
of a clear roadmap to transferring the fully funded closed defined
benefit schemes to insurers.
Overall net debt reduced by £77m as lease liabilities increased by
£46m, a result of recent sale-and-leaseback transactions and also the
move to transfer the Group’s forklift truck fleet to be fully electric, with
all new forklifts being leased.
Funding
As at 31 December 2024, the Group’s committed funding of £800m
comprised:
• £250m guaranteed notes due February 2026, listed on the London
Stock Exchange.
• £75m bilateral bank loan due August 2027.
• A revolving credit facility of £375m maturing in November 2028.
• £100m of US private placement notes, maturing in equal tranches in
August 2029, August 2030 and August 2031.
As at 31 December 2024, the Group had undrawn committed facilities
of £390m (2023: £390m) and deposited cash of £200m (2023:
£102m), giving overall liquidity headroom of £590m (2023: £492m).
As part of the refinancing of the £250m February 2026 sterling bond,
on 13 March 2025 the Group issued £125m of US private placement
notes to a group of six investors with maturities between 2028 and
2035 at investment grade yields.
Financial risk management
The overall aim of the Group’s financial risk management policies is to
minimise potential adverse effects on financial performance and net
assets. The Group manages the principal financial and treasury risks
within a framework of policies and operating parameters reviewed and
approved annually by the Board of Directors. The Group does not enter
into speculative transactions.
The Group has a revolving credit facility with a syndicate of eight banks
with a total value of £375m (2023: £375m). The facility has a 2029
maturity date with an option to extend the maturity date to 2031.
The Group has £425m of committed funding from the issuance of
bonds and loans: £250m guaranteed notes due February 2026,
listed on the London Stock Exchange; £75m bilateral bank loan due
August 2027; £100m of US private placement notes, maturing in equal
tranches in August 2029, August 2030 and August 2031.
In March 2025 the Group issued £125m of senior unsecured notes to
a syndicate of six investors. The proceeds of the issuance will be used
to refinance a portion of the Group’s £250m public bond maturing in
February 2026.
The Group’s policy is to enter into derivative contracts only with
members of its bank facility syndicate, provided such counterparties
meet the minimum rating set out in the Board-approved derivative
policy. At the year-end the Group had a £75m interest rate swap
outstanding and its borrowings were fixed on 100% of the Group’s
cleared gross debt (before cash and cash equivalents).
The Group settles its currency denominated purchases using a
combination of currency purchased at spot rates and currency bought
in advance on forward contracts. It purchases forward contracts for
approximately 90% of its committed requirements six months forward
based on the firm placement of forward stock purchases. At 31
December 2024 the nominal value of currency forward contracts was
US$24m (2023: US$22m and €6m).
The Group is a substantial provider of credit to a large portfolio of
small and medium-size businesses throughout the UK together with
some of the country’s largest construction companies. It manages
its exposure to credit risk through a strong credit control function
that works closely with the business and its customers to ensure the
Group offers credit sufficient for the needs of those customers without
exposing the Group to excessive risk. The bad debt charge in 2024 was
approximately 0.4% (2023: 0.3%) of credit sales.
In summary, the key aspects of the Group’s financial risk management
strategy are to:
• Run the business to investment-grade credit parameters.
• Reduce reliance on the bank market for funding by having a diverse
mix of funding sources with a spread of maturities.
• Seek to maintain a strong balance sheet.
• Place a high priority on effective cash and working capital management.
• Maintain liquidity headroom of over £200m and build and maintain
good relationships with the Group’s banking syndicate.
• Manage counterparty risk by raising funds from a syndicate of lenders,
the members of which maintain investment grade credit ratings.
• Operate banking covenants attached to the Group’s revolving credit
facilities and term loan within comfortable margins.
• Maintain the ratio of reported net debt to adjusted EBITDA in the
range of 1.5x to 2.0x. It was 2.5x (2023 (restated): 2.6x) at the
year-end.
• Have a conservative hedging policy that reduces the Group’s exposure
to currency fluctuations.
25GOVERNANCE
FINANCIAL STATEMENTS
OTHER INFORMATION
STRATEGIC REPORT
Travis Perkins plc Annual Report and Accounts 2024
The financial ratios are calculated under IFRS as adopted by the EU as
it was immediately before the adoption of IFRS 16 – Leases, except for
the August 2022 loan agreement which has economically equivalent
tests that incorporate the impact of IFRS 16 – Leases. Tax strategy and
tax risk management
The Group’s objectives in managing and controlling its tax affairs and
related tax risks are as follows:
• Ensuring compliance with all applicable rules, legislation and
regulations under which it operates.
• Maintaining an open and cooperative relationship with the UK tax
authorities and with the tax authorities that the Group’s overseas
businesses operate under, to reduce the Group’s risk profile.
• Paying the correct amount of tax as it falls due.
Tax policies and risks are assessed as part of the formal governance
process and are reviewed by the Chief Financial Officer and reported
to the Audit Committee on a regular basis. Significant tax risks,
implications arising from these risks and potential mitigating actions
are considered by the Board when strategic decisions are taken. In
particular the tax risks of proposed transactions or new areas of
business are fully considered before proceeding. The Group employs
professional tax specialists in the UK to manage tax risks and takes
appropriate tax advice from professional firms where it is considered to
be necessary for both its UK and overseas operations. The Group’s tax
strategy is published on its website.
Total tax contribution
The table below provides a reconciliation of the income taxes paid by
the Group in the financial year compared to the tax charge shown in
the Group’s Financial Statements. Details of the total tax contribution
made by the Group in 2024 and tax collected on behalf of tax
authorities is also detailed below.
Reconciliation of tax paid to tax charge:
£m
Total tax charge per accounts 2.2
Deferred tax credit* 33.3
True up of prior periods tax liability (0.6)
Tax deductions in reserves –
Current tax payable on 2024 profits 34.9
Tax paid in 2024 to be refunded in 2025 (3.0)
Tax refunds received in 2024 relating to years prior to 2024 (11.0)
Total net current taxes paid in 2024 20.9
Other taxes paid in 2024:
Business rates 38.9
National Insurance contributions 48.9
Other taxes and duties 16.2
Total tax contribution for 2024 124.9
Tax collected in 2024:
PAYE 77.2
Employee's NI 31.6
VAT 192.1
Total tax collected and paid for 2024 425.8
* Certain profits and costs recognised in the Financial Statements do not result in a cash tax
effect until a future date. When this happens an accounting entry, called deferred tax, is made
to recognise the expected future tax cost or benefit.
Viability assessment
In accordance with Provision 31 of the UK Corporate Governance Code,
published by the Financial Reporting Council in 2018, the Board of
Directors has undertaken an assessment of the viability of the Group.
As part of its deliberations the Board undertook a robust review of
the Emerging and Principal Risks and Uncertainties facing the Group,
how they are managed and the actions that could be taken to mitigate
their effect or avoid them altogether. The resulting disclosures, which
include those risks that could threaten the Group’s business model,
performance, solvency and liquidity are shown on pages 59 to 69 of
the Annual Report. The Board believes the Group is well-placed to
manage those risks successfully.
The Board has decided that it is appropriate to assess the performance
of the Group over a three-year period from 28 February 2025, the
month-end date closest to the approval of the 2024 annual results.
Three years has been chosen because this is the period that it is
reasonably possible to forecast forward with a degree of accuracy.
This is because the Group is subject to the vagaries of the economic
cycle and property market which cannot reasonably be forecast with
certainty further than three years forward. Whilst the Board has no
reason to believe the Group will not remain viable over a longer period,
the inherent uncertainty involved means three years is the appropriate
period over which to give users of the Annual Report a reasonable
degree of confidence.
The Corporate Plan, which is prepared annually on a rolling basis,
considers the Group’s future profitability, cash flows, liquidity headroom,
availability of funds and covenant compliance. For the purposes of
the viability review, the Board has performed a robust sensitivity
analysis to stress test the downside scenario principally based upon
the 2008/2009 financial crisis and the mitigating actions that would
be taken to protect the Group’s viability. These actions include reducing
costs, capital spend, revenue investment and payments to shareholders,
as well as restricting credit to customers. In undertaking this analysis,
the Board considered the impact on the wider economy and property
market from the current interest rate environment and cost-price
inflation in building materials and energy prices, as well as general price
levels. Given the Group’s trading experience in the Covid-19 pandemic
and the nature of the near-term risks to the economy, the use of the
2008–2009 financial crisis as a model for a prolonged downturn in the
housing market remains appropriate.
Based upon the assessment undertaken, the Directors confirm that
they have a reasonable expectation that the Group will be able to
continue in operation and meet its liabilities as they fall due over the
three-year period of their assessment.
26 GOVERNANCE
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OTHER INFORMATION
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Travis Perkins plc Annual Report and Accounts 2024
SUSTAINABILITY REPORT
Building for Better
As the UK’s largest distributor of building materials, Travis
Perkins plc is committed to driving meaningful Environmental,
Social and Governance (“ESG”) change in the construction
industry. This commitment to customers, colleagues and
communities covers every aspect of the business. Besides
a focus on improving the performance of its own business,
the Group works proactively with suppliers and customers
and recognises the important role it plays as a convener
and influencer in the development of more sustainable
communities.
Building on the progress made since the Group launched
its first Building for Better framework and targets in 2020,
this latest status report provides an update on performance
in the focus areas where the Group carries the most risk or
opportunity, as shown in the framework.
BUILDING FOR BETTER
SUSTAINABILITY PRIORITY
Decarbonising the industry
Modernising
construction
Provide sustainable
products and services
to support Modern
Methods of Construction,
retrofit, energy efficiency,
decarbonisation, climate
resilience, biodiversity,
nature, water and waste.
Sourcing
responsibly
Ensure safe and quality
products from ethical,
traceable and resilient
supply chains. Support the
golden thread
of data.
Operating
sustainably
Lead by example within
the Group’s operations.
Deliver net-zero
carbon and reduce
operational waste.
Developing the
next generation
Upskill the Group’s
colleagues and the
wider industry in green
and future skills to
help facilitate sector
improvements.
DOING THE RIGHT THING
Safety & Wellbeing | Diversity, Equity & Inclusion | Colleague Voice | Reward
Charity & Community | Modern Slavery & Human Rights | Legal Compliance
27GOVERNANCE
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Travis Perkins plc Annual Report and Accounts 2024
The Double Materiality Map illustrates the Group’s key priorities based on double materiality, taking into
account impacts on the Group and the Group’s impacts on the environment, society and the market.
The Group will continue to review the material focus areas to ensure that the most important topics for
the business and for its stakeholders are in scope.
DECARBONISING THE INDUSTRY DOING THE RIGHT THING
MODERNISING
CONSTRUCTION
SOURCING
RESPONSIBLY
DEVELOPING THE
NEXT GENERATION
OPERATING
SUSTAINABLY
Employee safety
andwellbeing
Culture
and purpose
Responsible and
transparent business
Responsible
marketing
and selling
Access to sustainable
and resilience-
improving solutions
Biodiversity, nature
and forestry
Responsible sourcing
and relationships
withsuppliers
Human rights and
modern slavery
Developing skills
andknowledge in
thecommunity
Skills, apprenticeships
and training
Carbon emissions Operational waste
management
Identified as a top ten priority for inwards impact. An
issue that can materially impact Travis Perkins plc.
Pay and
reward
Employee
engagement
andrelations
Diversity, equity
andinclusion
Business
andoperations
community impacts
Identified as a top ten priority for outwards impact. An
issue that Travis Perkins plc has a material impact on.
Water use Product packaging
and circularity
Data use and
responsibility
Product safety
andquality
Air quality
Collaborative partnership
In 2024 the Group further developed the
sustainable products, data and services it offers, in
response to increasing requests from customers for
support on decarbonisation and other sustainability
issues. The Group is an active member of a number
of industry working groups to better understand
industry challenges, share best practices and
influence and develop shared approaches where
this brings efficiencies:
1. National Retrofit Hub
2. Future Homes Hub
3. Builders Merchant Federation
4. Logistics UK
This external participation reflects the Group’s
biggest sustainability risks or opportunities and
allows the Group to evolve its approach as needed,
remaining relevant for customers and other
stakeholders.
2024 performance summary
Despite a tough economic climate, sustainability
requirements from the Group’s largest customers
continue to increase. The focus in 2024 has been
on prioritised in-year initiatives as well as the
development of the product ranges and data needed
to drive sustainable and commercial success in the
medium to long term. The Group’s position in the
supply chain between thousands of customers and
suppliers means it is able to collaborate with the
supply chain to co-create solutions and influence
the changes the industry needs.
The Group has three sustainability targets relating
to carbon and skills and in-year objectives for all
other focus areas. The two carbon targets are SBTi-
approved as in line with a 1.5˚ warming pathway (see
page 44), and the skills target is to achieve 10,000
graduated apprentices by 2030 through the Group’s
LEAP apprenticeship provider.
These targets will be reviewed in 2025, taking into
account delays in government policy, funding and
infrastructure improvements, all of which are critical
to the Group’s ability to meet these targets.
The Group made progress towards its carbon
reduction targets in 2024 with specific actions
including the completion of the electric forklift
roll-out, Hydrotreated Vegetable Oil (“HVO”) use
for 210 HGVs and LED installations, as well as
data improvements for Scope 3. However, it is
recognised that absolute carbon reductions are in
part due to market volume declines. In addition, the
previously reported relative carbon performance
per £m revenue has been impacted by inflation.
As such, a new relative performance measure has
been introduced from 2024; carbon per tonne of
product sold. This indicates a potential future risk
of deterioration in the Group’s Scope 3 carbon
performance once sales volumes pick up. Work is
underway to influence Scope 3 improvements in the
value chain. Absolute performance from 2023 to
2024 is -13% for Scope 1&2 and -7% for Scope 3.
Performance relative to tonnes of product sold from
2023 to 2024 is -10% for Scope 1&2 and -3% for
Scope 3. It is important to consider carbon intensity
in a period of sales decline to gain a more balanced
view of performance. Further carbon performance
data can be seen on pages 57-58.
A total of 427 colleagues and industry partners
graduated in apprenticeships facilitated by LEAP, the
Group’s Early Careers and Apprenticeship Provider in
2024. This contributes to the Group’s upskilling target.
Work in all other focus areas has moved forward
and progress is reported on the following pages.
Double materiality and stakeholder engagement
The Group continued to engage with its stakeholders
on ESG during 2024. These interactions
demonstrated that the material focus areas for the
Group remain unchanged from those that were
determined in the 2022 in-depth ESG double
materiality assessment. Ongoing engagement with
all stakeholder groups ensures that the Group’s
strategic choices and reporting remain focused on
the most important issues. The Double Materiality
Map below illustrates key priorities for the Group
and these will be reassessed in 2025.
The Group actively engages with stakeholders to
share progress, inform plans, listen to feedback and
seek views. The key stakeholder groups, their ESG
concerns and the Group’s engagements with them
in 2024 are detailed in the Section 172 statement on
pages 78-80.
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Travis Perkins plc Annual Report and Accounts 2024
SUSTAINABILITY REPORT CONTINUED
Delivering
social value
The Group delivers value to its communities in many ways.
Below are some of the highlights from 2024.
SKILLS DEVELOPMENT OPERATIONAL IMPACT COMMUNITY INVESTMENT
Governance of sustainability
The Board has overall responsibility for
sustainability. The Group Sustainability
Director supports the Group in
developing, governing and delivering
against its sustainability strategy.
Each of the material focus areas has
a Group lead supported by nominated
leads and leadership sponsors in each
business. Progress is reported to the
Group Leadership Team and the Board
to monitor and improve performance.
The Stay Safe Committee of the Board
oversees performance in health and
safety. Policies and objectives are in place
for each material focus area. The Group’s
ESG policies can be found on the Group’s
website.
Climate-related financial risks and
opportunities
Since 2010, the Group has submitted
an annual climate disclosure to the
Carbon Disclosure Project (“CDP”)
This includes a financial assessment of
climate-related risks and opportunities.
The Group has prepared its fourth full
disclosure against the Task Force for
Climate-related Financial Disclosure
(“TCFD”) recommendations on pages
43-58. During 2024 the Group further
enhanced its climate risk and opportunity
assessment through desktop analysis
of the published TCFD reports of large
suppliers and customers.
Corporate Sustainability Reporting
Directive (“CSRD”) compliance
Toolstation Europe will report in line
with CSRD at such time as it becomes
applicable to their business.
Alignment to UN Sustainable
Development Goals
Through the Building for Better ESG
agenda, the Group directly supports
delivery of a number of the 17 UN
Sustainable Development Goals
(“SDGs”). The most relevant six goals are
detailed in the table on page 29. With
the Group’s sustainability priority being
to decarbonise the industry, Goal 13 on
Climate Action is taken into account
across all ESG focus areas and influences
decision-making.
Graduated apprentices
427
378 for Group colleagues, 49 for the industry
Transport carbon reduction
11.5%
Amount raised for charity
£1m
Revenue from products with Environmental
Product Declarations or Life Cycle Analyses
14%
Number of social value projects
supported
295
Enrolled apprentices
1,019
841 for Group colleagues, 178 for the industry
Female apprentices
29%
Spend on goods-for-resale with SMEs
26%
Total social value project value
£2.1m
Apprentices under 25 years old
34%
Employed colleagues (FTE)
17,46 4
Apprentices from ethnic minorities
8%
Investment in colleague total reward
packages
£599m
Hours of ESG training completed
in-house or through the Supply Chain
Sustainability School
85,394
Total tax contribution
£426m
£125m taxes borne, £301m taxes collected
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Travis Perkins plc Annual Report and Accounts 2024
Material focus areas Commitment 2024 planned actions Progress 2025 planned actions Supporting the Group’s strategy SDGs
MODERNISING CONSTRUCTION
Sustainable products and services
to support Modern Methods of
Construction, retrofit, energy efficiency,
decarbonisation, climate resilience,
biodiversity, nature, water and waste.
63% reduction in
Scope 3 carbon
by 2035
Develop a definition of sustainable products based on robust
criteria and launch within at least one Group business.
Increase the percentage of sales backed by Environmental
Product Declarations from 10.7% (2023).
Good
Launch data set to help customers to identify products with
sustainable attributes across at least two of the Group’s
businesses.
Continue to increase the coverage and quality of product-
level carbon data across the Group and support customers
with carbon-reporting tools.
By providing sustainable products
and value-add services to customers,
the Group can earn a greater share of
spend and become a key partner.
SOURCING RESPONSIBLY
Safe and quality products from ethical,
traceable and resilient
supply chains, supporting the
golden thread of data.
Develop the Group’s due diligence approach, with a target of
the supplier assessment programme covering 90% of Group
spend on products-for-resale by the end of 2024.
Good
Expand the share of Group spend which is covered by
supplier assessments across both GNFR and GFR suppliers.
Customer relationships are
underpinned by trust in the Group to
source responsibly and meet changing
data transparency requirements.
OPERATING SUSTAINABLY
Net-zero carbon and reduced operational
waste. Leading by example in the Group’s
operations.
Net-zero for
Scope 1 and 2
carbon by 2035,
with at least
80% reduction
Continue with carbon training to enable colleagues to drive
energy and fuel reduction and better support customers by
sharing best practice.
Good
Take stock of the Group’s estate and assets, considering
the availability of current and emerging low-carbon
technologies, to inform the continued development of the
Group’s Fleet and Estate decarbonisation roadmaps for the
years ahead.
All of the Group’s stakeholders expect
credible action on operational carbon
and waste. Performance can influence
the outcome of customer tenders.
DEVELOPING THE NEXT GENERATION
Upskilling colleagues and the wider
industry in green and future skills to help
facilitate sector improvements.
10,000
graduated
apprentices
by 2030
Introduce a flexible apprenticeship which will include
placements with other businesses in the sector. Launch
a suite of micro-qualifications: short, focused learning
programmes for job-related skills and knowledge.
Good
Develop the Group’s Learning and Development (L&D)
offering in line with the new Government’s “Growth and
Skills” levy funds to support a wider range of training and
development programmes, extending beyond traditional
apprenticeships.
To best support customers in a changing
market, green and future skills are
critical. As a trusted and leading partner
to the construction industry, customers
value the Group’s expertise and advice.
DOING THE RIGHT THING
Safety and wellbeing: Getting everyone home safe and well,
every single day.
Continue to embed the growing culture of “Calling it out”,
taking time to “Stop, Step Back, Think. Then Act” by ensuring
daily team briefings take place at all locations.
Good
Introduce a new second line of defence safety assurance
programme, and continue focus on out-of-branch safety,
including safe deliveries.
Doing the Right Thing deepens
relationships with customers as
expectations around responsible
business increase.
Diversity, equity and inclusion: Creating an environment
where everyone can be themselves.
Target an engagement survey score for the statement “I feel
a sense of belonging at this Company” above the provider’s
global average by the end of 2025.
Some
The Group is targeting an engagement survey score for the
statement “I feel a sense of belonging at this company” in
excess of the provider’s global average by the end of 2025.
Colleague voice: Listening to colleagues to make better
decisions and increase engagement.
Develop action plans to address the priorities and issues that
have the biggest impact on engagement and therefore
on overall business performance.
Some
Conduct analysis of the engagement survey, ensuring clear
actions are identified, set and taken at a Group, Business and
local level; leveraging engagement as a performance lever.
Charity and community: Taking pride in helping others and
making positive change happen.
Grow colleague volunteer hours and build charity and
community partnerships that deliver on the Group’s impact
goals and use these partnerships deliver social value.
Some
Continue to use charity and community partnership and
activity to create meaningful social change both nationally
and locally; working with established and new partners.
Reward: Improving the financial health of colleagues. Continue to explore ways to support colleague long-term
financial resilience and wider wellbeing.
Some
Focus on incentive structures to drive engagement and
performance. Provide further support to those approaching
retirement to reflect the challenges of an ageing population.
Modern slavery and human rights: Eliminating modern
slavery from the Group and its supply chains.
Extend in-person ID checks, currently conducted on higher-risk
labour agency workers, to other third parties.
Some
Development and delivery of additional controls for labour
agency workers employed at Group sites, including controls
to address the risk of modern slavery.
Legal compliance: Complying with all relevant laws. Develop the internal Doing the Right Thing portal to increase
understanding of legal compliance policies and guidance.
Some
Development and delivery of further bespoke training to
cover a number of key compliance areas, to complement
existing training modules.
Sustainability priority: Decarbonising the industry
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SUSTAINABILITY REPORT CONTINUED
Modernising construction
Providing sustainable products and services to support retrofit, Modern Methods of Construction, energy efficiency,
decarbonisation, climate resilience, biodiversity, nature, water and waste.
Why it is important
The built environment is responsible for 25% of
emissions in the UK along with a wide number of
other sustainability challenges. Customer needs are
changing and the Group needs to adapt to remain
relevant, seize the opportunity and provide different
products, data and services. With 99% of the
Group’s carbon footprint in the supply chain, due to
manufactured carbon and in-use product emissions,
innovation is essential. Enabling sustainable
construction and retrofit supports the needs of
customers and the wider community, enabling
healthier, more cost efficient and more sustainable
buildings.
Progress in 2024
In 2024, the Group further developed its product,
data and service proposition for customers, working
alongside suppliers and other partners. The Group’s
product offering has been enhanced with new
product ranges, particularly across renewables
and low-carbon heat, enabling the supply of a full
retrofit basket of goods. This product expansion
aligns with growing customer interest and demand
for sustainability, led by either EPC requirements
or their own sustainability goals, and the Group is
strategically positioning itself to meet their evolving
expectations. Progress was made against the
Group’s two stated objectives: the introduction of
definitions for sustainable attributes of products
and increased coverage of sales by Environmental
Product Declarations (“EPDs”).
The Group made further progress towards its
science-based Scope 3 carbon target of 63%
reduction by 2035 from a 2020 baseline, with a
further 7% absolute reduction in 2024. However,
tonnes of Scope 3 carbon per tonne of product sold
only decreased by 3% during 2024 highlighting
reduced sales as the primary driver of the decline,
rather than product decarbonisation.
Reduction can only meaningfully follow engagement
(supplier target setting) and data accuracy (product-
level carbon data) and these two points have
improved over the last few years, setting the Group
up for future reduction opportunities. More detailed
carbon data is shared on pages 57-58.
Working with suppliers, customers and the
wider industry to enable change
99% of the Group’s emissions are in its supply
chain and this is due primarily to the embodied
carbon from manufacturing the products sold and
the operational carbon of some of those products
in use, such as gas boilers. The Group’s Scope 3
hot spots typically mirror those of its customers;
supporting customers to improve also drives
performance against the Group’s own carbon
targets. Recognising that Scope 3 emissions are
not in the direct control of the Group, engagement
with suppliers, customers and the wider industry is
critical to influence and drive change.
Tonnes of CO
2
e (Absolute) – Scope 3
2035* 1.4m 1.4m 0.3m
2024
3.3m 0.8m2.3m
2023
2.6m 3.5m 0.9m
2020 Baseline
3.8m 3.9m 0.8m
0m 1.0m 2.0m 3.0m 4.0m 5.0m 6.0m 7.0m 8.0m 9.0m
Tonnes of CO
2
e (Absolute) – Scope 3
* Target year.
Category 1 Category 11 All other categories
indicates that the data point has been assured. Please see page 35 for more information.
Carbon reduction (Absolute Scope 3, 2020 to 2024)
-23%
Carbon reduction (Absolute Scope 3, 2023 to 2024)
-7%
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Travis Perkins plc Annual Report and Accounts 2024
Suppliers
The Group continues to work with manufacturers to
encourage them to calculate and reduce their own
emissions, develop new materials and products and provide
product-level sustainability data, typically Environmental
Product Declarations (“EPDs”).
• 61% of the Group’s spend is now with suppliers who have
calculated their carbon and set reduction targets (57%
in 2023).
• 14% of sales value was covered by high-quality emission
factors (EPDs or LCAs) applied at a product level (11% at
end of 2023). All other sales were covered by good-quality
emissions factors at a product level (an additional 32%) or at
product sub-category level (remaining 54%). Work continues
to increase the use of product-level emissions factors.
• The Group’s renewables range has been expanded, with
customers now offered a much wider range of renewables
and a complete basket of retrofit products, across both
systems and fabric.
Customers
The Group works with customers to help them to deliver
net zero new builds and to retrofit the UK’s existing built
estate, providing the products, data and services they
need. The demand for sustainable products and solutions
represents a growth opportunity for the Group and, with the
breadth of products available across each of the businesses,
the collective product offering affords opportunities for
customers which few in the industry could match.
• A product-carbon reporting tool was developed for CCF
customers, now rolling out with CCF and more widely
across the Group.
• CCF launched an own-branded low-carbon steel framing
alternative, Tradeline Lite.
• A dedicated renewables category team was established in
order to meet growing demand.
• The first customer homes have been built using the
WholeHouse® digital platform developed by the Group (see
case study on the right).
Wider industry
The Group engages with its supply chain, industry bodies
and government to enable the changes needed both for
itself and its customers.
• The Group continued its partnership with the National
Retrofit Hub, co-chairing the Supply Chain, Products and
Solutions working group and helping to shape retrofit
delivery for the UK.
• The Group is represented in sustainability working groups
with the Builders Merchant Federation, Future Homes Hub,
Supply Chain Sustainability School and Sustainability in the
Built Environment Working Group in order to learn from
others, share best practices and remove duplication and
complexity on shared challenges.
• The Group sponsored a decarbonisation launch event at
the decarbonisation hub Ty Gwyrddfai owned by one of its
large social housing customers, Adra, in Penygroes. This
provided an opportunity to showcase innovative products
to a wide range of social housing and local authority
customers across North Wales.
Helping customers through enriched data
and information
In response to a growing demand for information on
sustainable alternatives in product ranges, the Group has
been developing new data points for products to highlight
sustainable attributes with a clear set of definitions and
rules. This is important to ensure that both customers and
the wider market can trust the claims being made and to
avoid the risk of greenwashing. This new data set is planned
to launch in the first half of 2025 in one of the Group’s
businesses, expanding to the rest of the Group thereafter.
This will enable the Group to answer customer queries
confidently and customers to trust the claims being made
on products sold to them.
The design coordination and information
available ahead of construction has been
a real advantage, from the Pre-
Manufactured Utility Cupboard, allowing
the air source heat pump to be installed
more efficiently and effectively on-site,
all the way down to every door being the
same size to simplify both site practices
and the wider supply chain.
Ray Jordan
Construction Director, Bowbridge Homes Ltd
First homes built using
Travis Perkins WholeHouse
In 2024, the first home designed and
built using the Group’s ground-breaking
WholeHouse digital platform was completed
in Leicestershire. The platform was used by
Bowbridge Homes Ltd to develop a pair of
semi-detached properties on its site near
Melton Mowbray.
This significant milestone follows the launch
of WholeHouse in 2023; a platform designed
to revolutionise the way SME house builders
plan, design and construct new homes.
The platform is specifically designed for
housebuilders building up to 250 units a year.
It means SME housebuilders can plan and
design a bespoke digital model of a house
before physically constructing it. It ensures
detailed and accurate design, plans and
material pricing of developments from the
first day. From start to finish, the process can
be completed in under an hour, saving weeks
off the planning process and construction
phase to the benefit of both builders and
homeowners.
Using the WholeHouse platform, Bowbridge
Homes were able to develop two of the
existing properties on the site, enabling them
to increase their thermal performance and
try new renewable heating packages without
having to spend months changing designs
and checking compliance with the latest
regulations.
The homes are the first of many to be
developed using WholeHouse, with further
site starts expected to begin later this year.
What’s next
• Launch data set to help customers to identify products
with sustainable attributes across at least one of the
Group’s businesses.
• Continue to increase the coverage and quality of
product-level carbon data across the Group and
support customers with carbon-reporting tools.
For more information visit: www.wholehouse.uk
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Delivered by
Operational Toolkit:
Combatting Slavery in
theBuiltEnvironment
Empowering site teams with
actionable insights and resources
toaddress labour exploitation
SUSTAINABILITY REPORT CONTINUED
Sourcing responsibly
Ensuring safe and quality products from ethical, traceable and sustainable supply chains.
Why it is important
The Group sources hundreds of thousands of
product lines from thousands of suppliers and has a
responsibility to understand and manage products
and supply chains well. The way in which products
and services are sourced has a material impact on
environmental and social sustainability. By requiring
and supporting suppliers to improve and report on
their product quality, product data and operations,
the Group can protect itself and its customers, who
increasingly request evidence of this. Improved data,
provision of product information and traceability of
products will bring more accountability and effective
decision-making to the construction sector.
Progress in 2024
The primary objective for 2024 was continued
development of the Group’s due diligence approach,
targeting 90% of Group spend on goods-for-resale
to be within the supplier assessment programme.
At the end of 2024, 90% of Group spend on goods-
for-resale was within the programme, an increase
from 85% at the end of 2023.
Due diligence on product suppliers
The Online Risk Assessment (“ORA”) has been
issued to the next phase of Group suppliers, taking a
risk-based approach. ORAs were submitted by 392
suppliers of products for resale in 2024 with 1,403
suppliers now engaged in the ORA programme.
Own-brand product manufacturing sites are subject
to in-person ethical and technical audits, with all
ethical audits completed by a third-party auditor. In
2024, 199 factory audit gradings were completed.
Where issues were identified, time-bound corrective
action plans were used to support suppliers to resolve
these. Suppliers resolved 3,556 non-conformances
through engagement with the supplier assessment
programme.
A short version of the assessment has been
implemented within the Group’s new finance system
for onboarding lower spend suppliers and has been
completed by 204 suppliers during 2024.
Assessment of Goods-Not-For-Resale
(“GNFR”) suppliers
The Group’s GNFR ORA, alongside an internal
assessment, was extended to additional suppliers
on a risk-basis across all businesses and Group
functions, covering 54% of the Group spend on
GNFR by the end of 2024.
Maintaining safe and sustainable timber
supply chains
90.1% of timber purchased by the Group in 2024
was certified. The business continues to operate a
robust timber chain of custody system in order to
pass the “chain of custody” safely onto customers.
Collaboration across the industry
The Group Head of Responsible Sourcing, working
within the Supply Chain Sustainability School’s Modern
Slavery Working Group, contributed to the development
and launch of a new modern slavery guidance
document, “Operational Toolkit: Combatting Slavery
in the Built Environment”.
This toolkit aims to empower individuals involved in
site set up and management to effectively combat
slavery and labour exploitation. It brings together
insights and recommendations to help address these
issues, including free resources such as posters, toolbox
talks, and videos from leading modern slavery expert
organisations to make it easier for businesses to find
the support they need.
What’s next
Expand the share of Group
spend which is covered by
supplier assessments across
both GNFR and GFR suppliers.
Certified timber purchased in 2024
90.1%
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Working to raise standards in construction
product information
CCF successfully passed the Code for
Construction Product Information (“CCPI”)
assessment for Merchants and Distributors. This
achievement underscores CCF’s commitment
to providing accurate and reliable product
information to its customers.
The CCPI is a stamp of approval to verify
that suppliers’ information on their products
and systems is clear, accurate, up-to-date,
accessible and unambiguous. For distributors it’s
a verification that their processes and training
means that they accurately relay suppliers
product information to their customers.
34 GOVERNANCE
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OTHER INFORMATION
STRATEGIC REPORT
Travis Perkins plc Annual Report and Accounts 2024
2035 Target
5,022
10,796
2024
6,200
39,739
2023
44,932 7,750
2024
2020
508 25,929
53,981 25,111
2023
0
20,000 40,000 60,000 80,000
1,075 27, 3 76
2022
Tonnes of CO
2
e (Absolute) – Scopes 1 & 2
1,622 25,913
0
Transport Buildings
10,000 20,000 30,000
Tonnes of Waste
Landfilled Waste Recycled/Recovered Waste
SUSTAINABILITY REPORT CONTINUED
Operating sustainably
Securing long-term success and efficiencies for the Group by adapting operations to deliver net zero carbon, reduce
operational waste and prevent pollution.
Why it is important
The Group takes responsibility for direct
environmental impacts from its estate of over 1,400
sites and fleet of 2,500 vehicles, because it’s the
right thing to do and to drive operational efficiencies
and meet growing expectations of customers and
investors. The Group has committed to reducing
Scope 1 and 2 carbon – relating to the Group’s
fleet and estate – by 80% by 2035 and offset any
remaining emissions. Whilst 99% of the Group’s
footprint is in the supply chain, to have integrity
in asking suppliers and customers to decarbonise
the Group must address its own direct emissions.
Besides carbon, the Group generates waste in
its operations, primarily relating to packaging or
obsolete products, and takes its role in preventing,
reusing, recycling and recovering waste seriously in
order to minimise the use of natural resources and
protect the natural environment.
Progress in 2024
In 2024, the Group committed to continue carbon
training for colleagues and to better support
customers by sharing best practices. Sustainability
training, including carbon training, was delivered
to over 8,500 colleagues either through online
training modules or bespoke training sessions.
Representation from the Group continued in a
number of industry forums (see page 80) to share
best practices and support customers. Additional
action was taken to decarbonise the Group’s estate
and fleet.
Decarbonising the estate
The Group’s estate consists of a number of
distribution centres and over 1,400 branches. In
2024 the Group continued to use a renewable
energy tariff, saving 13,657 tCO
2
e emissions. Work
continued on the rollout of the Group’s LED lighting
project, upgrading lighting in 38 locations, replacing
obsolete fluorescent lighting with modern, efficient,
LED lighting and PIR sensors. Investment in this
project, whilst not delivering additional carbon
savings while the Group is on a renewable tariff,
lowers the Group’s energy demand and delivers
operational cost benefits. The Group has also taken
action to decarbonise eight new branch openings,
installing air source heat pumps, solar panels and
electric vehicle charging stations. See the Swindon
West case study for an example of this in practice.
Decarbonising the fleet
In 2024 the Group completed one of the UK’s largest
forklift electrification programmes. This multi-million
pound investment enabled the transition of diesel
powered forklift trucks to a fully electric alternative.
The programme resulted in a root and branches
review of mobile handling equipment needs, and saw
the introduction of around 900 electric forklift trucks
and associated charging infrastructure. The Group is
already seeing improvement in operational efficiency
and it is estimated that this programme will reduce
Scope 1 emissions by around 5,000 tonnes CO
2
e per
annum. The Group also continued to use HVO instead
of diesel in 210 of its HGVs during the year.
Progress against carbon targets
During 2024, Scope 1&2 carbon reduced by 13%,
taking performance from the 2020 baseline year
to 2024 to -42%. The absolute reduction is partly
influenced by volume-driven activity decline in a
tough economic climate. Carbon performance per
tonne of product sold is shared on page 58.
Reducing operational waste
The Group aims to reduce operational waste
and contribute to a more circular economy. In
doing so, the Group has continued its reverse
logistics programme, backhauling timber
pallets (6,360 tonnes), plastic packaging (239
tonnes), paper and cardboard (3,128 tonnes) to
its distribution centres, to be sorted and sent
for recycling. During the year the Group also
reviewed its waste management framework
contract, appointing Veolia as its trusted waste
management partner.
Tonnes of CO2e (Absolute) – Scopes 1 & 2
Waste
indicates that the data point has been assured.
Please see page 35 for more information.
Carbon reduction (absolute
scope 1 & 2, 2020 to 2024)
-42%
Percentage of waste diverted
from landfill in 2024
98%
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Travis Perkins plc Annual Report and Accounts 2024
Environmental management
The Group has a robust Environmental Management
System (“EMS”) in place to help manage the
potential environmental impacts from its day-to-
day activities. The EMS is central to the Group’s
ambition to operate sustainably and is certified to
ISO 14001:2015 the environmental management
standard.
In 2024 the Group recorded 20 environmental
incidents with nine classed as reportable by its
internal procedures. Of the nine reportable incidents,
six were the result of third parties. The majority of
incidents related to small-scale spillages such as the
release of hydraulic oils.
Assurance
Specific data points in the Sustainability section,
marked with the logo
, have been assured against
LRQA verification procedures which are based on
AA1000AS (2008) and ISAE 3000. A copy of their
verification statement is available on our corporate
website.
Travis Perkins Flagship branch
Swindon Westmead gains
BREEAM* “Excellent” rating
This rating indicates that a new-build scheme
has incorporated innovative strategies and
techniques to reduce its environmental impact
and is committed to long-term sustainability.
Achieving an Excellent rating places the
project in the top 10% of new
non-domestic buildings.
The new-build development presented
an opportunity to showcase enhanced
new building design, ensuring the Group’s
operations remain fit for the future. The 2.1
acre all-electric site supports the Group’s
commitment to decarbonising its estate and
includes a modern, energy-efficient design
that incorporates insulated wall and roof
panels, a 68,000 kWh solar panel array,
charging points for electric vehicles, large
underground attenuation tanks to support
sustainable urban drainage (“SUDs”) and
landscaping and tree planting that, together
with the installation of bat and swift boxes,
supports biodiversity.
The new, sustainable building allows the branch
to operate from a larger floorspace and yard
and continue to provide customers with Travis
Perkin’s great range of products and services.
Scan this QR code to
see inside our new
Swindon site.
What’s next
Take stock of the Group’s estate and assets,
considering the availability of current and emerging
low-carbon technologies, to inform the continued
development of the Group’s Fleet and Estate
decarbonisation roadmaps for the years ahead.
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Travis Perkins plc Annual Report and Accounts 2024
SUSTAINABILITY REPORT CONTINUED
Doing the Right Thing People
Protecting against modern slavery and complying with all relevant laws.
Why it is important
Maintaining the Group’s Code of Conduct and legal compliance framework
helps to ensure stakeholders can rely on the Group to continue to do the right
thing and protects the Group from fines and business interruption. Whether
managing key compliance topics such as anti-bribery and corruption, anti-
money laundering, data protection or anti-competition, or reducing the Group’s
risks relating to modern slavery or human rights infringement, the Group
underpins its work on the strategic sustainability focus areas with a responsible
approach to business.
Progress in 2024 – modern slavery
Construction remains one of the industries most exposed to modern slavery and
the Group works to ensure the fair treatment of all workers in its own businesses
and supply chains.
The key objective for 2024 was to further develop in-person ID checks, currently
conducted on higher-risk labour agency workers, to include other third parties
working at the Group’s sites, based on risk. Following review of labour agency
use, the Group undertook work to identify opportunities to improve its modern
slavery controls.
Progress in 2024 – legal compliance
There was further development of the “Doing the Right Thing” and “Toolstation
Together” internal webpages to enhance access to legal compliance policies
and accompanying guidance. A risk-based approach was adopted to support
the advanced understanding of certain audiences in key compliance areas of
competition law and anti-bribery and corruption through the recompletion of
advanced legal compliance modules. The foundational compliance modules
listed below were completed in 2024 to improve understanding on key legal
topics.
• Code of Conduct and whistleblowing line
• Anti-bribery and corruption
• Anti-money laundering
• Competition law
• Corporate criminal offences
• Market abuse and insider trading
• Sales of restricted products
We continue to be immensely proud
of our apprentices and 2024 has
been another great year with our
achievement rates improving by nearly
10%. In my role I am lucky enough to
meet hundreds of colleagues who have
gained a formal qualification alongside
performing a busy job and their stories
of perseverance and listening to them
talk about the skills they have gained
and their career progression is inspiring.
It is clear though that still more needs
to be done if we are to address the
skills crisis across construction and
give colleagues the skills they need
to operate in a fast-evolving industry.
We are therefore looking forward to
maximising the opportunities that
will come from the government’s
overhaul of the apprentice system and
the introduction of the new Skills and
Growth levy.
Andy Rayner
Director of Learning and Development
What’s next – modern slavery
Development and delivery of additional controls
for labour agency workers employed at our
Group’s sites including controls to address the risk
of modern slavery.
The current economic climate increases the risk of
forced labour, especially in our supply chain. We are
committed to robust due diligence and ethical sourcing
to combat this.
John Bullivant
Group Head of Responsible Sourcing
What’s next – legal compliance
Development and delivery of further bespoke
training to cover a number of key compliance
areas, to complement existing training modules.
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Travis Perkins plc Annual Report and Accounts 2024
Developing the next generation
Upskilling colleagues and the wider industry in green and future skills to help facilitate sector improvements.
Why it is important
The sector is changing with new products and
construction methods, increased digitalisation
and new sustainability requirements. It needs to
attract more people to be successful. The Group
is committed to the development and deployment
of talent and the next generation workforce.
Development and apprenticeship programmes
upskill colleagues in their current roles and introduce
new colleagues to the business and the wider
construction sector.
Progress in 2024
The Group’s focus has remained on the
development of the next generation workforce,
driving apprenticeships to attract new and diverse
talent and upskilling existing colleagues.
Over 2,000 apprentices have graduated through
training programmes run by Group, marking a
significant milestone on the journey towards the
Group’s target of 10,000 development graduates
by 2030.
The key objective for 2024 was to introduce a
“flexi-job” apprenticeship which includes placements
with other businesses in the sector and also to
launch a suite of micro qualifications – short,
focused learning programmes that provide specific,
job-related skills and knowledge. Development
programmes launched during the year are as
follows:
• Customer Sales Excellence: Upskilling customer-
facing colleagues and equipping them with better
sales and service skills.
• Multi-Skilled Merchanting: Training colleagues to
excel in all areas of a Travis Perkins branch
including the branch counter, yard, Hire, Managed
Services and Benchmarx.
• Fast Track Hire Management: Equipping colleagues
with the skills and knowledge to manage a Hire
business.
External recognition
The Group was ranked 38th in the Apprenticeships
Top 100 Employers 2024 and 48th in the Rate My
Apprenticeships Best 100 Employers in 2024.
Attracting new talent into the sector
The Group and its apprenticeship division, LEAP,
worked closely with the Builders Merchants
Federation (BMF) in 2024 alongside a wide number
of industry peers to create the Building Materials
Careers Campaign, “Materially Different”. The
campaign showcases the breadth of opportunities in
the sector, enabling new entrants to find employers,
job and apprenticeship opportunities.
What’s next
Develop the Group’s Learning and
Development offering in-line with the
new Government’s “Growth and Skills”
levy to support a range of training and
development programmes that extend
beyond traditional apprenticeships.
100% of the Group’s apprentices rated
their experience as “excellent” for
learning new skills or developing
existing skills.
RateMyApprenticeship Data, 2024.
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Travis Perkins plc Annual Report and Accounts 2024
SUSTAINABILITY REPORT CONTINUED
Diversity, equity and inclusion
Creating an environment where everyone can be themselves.
Why it is important
With a changing industry and a fight for talent, focus
on Diversity, Equity and Inclusion (“DE&I”) helps
create diverse teams where everyone has the skills,
confidence and ambition to be their best and which
have the diversity of thought needed for the Group and
the industry to innovate and change.
Progress in 2024
The key objective was to improve the Group’s
engagement survey score for the statement “I feel
a sense of belonging at this company” to above the
provider’s global average. The score was negatively
impacted in 2024 by tough trading conditions and
difficult decisions made by the Group. Further attention
will be given to this during 2025.
New Inclusive Leadership programme
The Group continued to build the skills, knowledge and
behaviours of its leaders, helping them to create the
conditions for a diverse and inclusive workplace.
The Group worked in partnership with Green Park, a
pioneer in building diverse senior leadership teams
and more equitable workplace cultures, to develop its
Inclusive Leadership programme, which was delivered
in 2024 to more than 80 leaders.
Diversity statistics
Gender diversity 2024 – by role type Female % Male % Total
Director 2 25% 6 75% 8
Senior Manager 62 26% 176 74% 238
Colleague 4,254 25% 12,964 75% 17, 218
Total 4,318 25% 13,146 75% 17,464
Gender diversity 2024 – by business segment Female % Male % Total
Group and shared service 476 50% 475 50% 951
Toolstation 2,254 35% 4,180 65% 6,434
Merchanting 1,588 16% 8,491 84% 10,079
Total 4,318 25% 13,146 75% 17,464
Actively supporting the Construction Industry Coalition (“CIC”)
The Group is strategic partner to the CIC and in 2024 has shared information on initiatives taken
to drive improved DE&I. Angela Rushforth, Managing Director of Toolstation and Chair of the CIC,
spoke at the Coalition in Conversation conference in October 2024, setting out the objective of
the coalition: “There are good people in the industry but there are so many more good people the
industry could have. We want to be game changers and build a truly inclusive industry.”
What’s next
The Group is targeting an engagement
survey score for the statement
“I feel a sense of belonging at this
company” in excess of the provider’s
global average in 2025.
For further diversity statistics please see page 186 ESG/SASB table at the back of the report.
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Travis Perkins plc Annual Report and Accounts 2024
Hannah Stronach
Branch Operations Manager
From Branch Apprentice to Operations Manager
Hannah Stronach started her career at Travis Perkins Elgin three years
ago, joining the business as a Branch Apprentice studying Level 2 Trade
Supplier. Nearing the end of the programme, Hannah was promoted
to Branch Operations Manager thanks to her skills and newly acquired
expertise. After completing the programme, Hannah went straight on
to the Level 3 Team Leader Apprenticeship where she says “Part of my
new role in the branch was to make changes to the way the transport
department was running and organised. Learning new management,
organisation, and communication skills helped me massively to
complete these changes and have the confidence to communicate
the changes to the team.”
When asked about her favourite thing about being on an apprenticeship,
Hannah explained that it is “being pushed out of my comfort zone
to learn new things and having difficult conversations with staff and
customers if needed. It pushes you to not just do your 9-5 job but to
take the leap and find out about what is available to you and how you
could progress through the business if you are interested.”
Hannah is among numerous colleagues benefiting from the Group’s
award-winning apprenticeship programme, an important focus as the
Group develops the next generation of talent.
40 GOVERNANCE
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Travis Perkins plc Annual Report and Accounts 2024
SUSTAINABILITY REPORT CONTINUED
Safety and wellbeing
Getting everyone home safe and well, every single day.
Why it is important
Keeping people safe and well is the Group’s
top priority.
Progress in 2024
The Group’s key objective for 2024 was to continue to
create a culture of Calling it Out, taking time to Stop,
Step Back, Think. Then Act by ensuring daily team
briefings take place at all locations.
The Group’s top leaders visited branches more often,
checking in with branch teams to better understand
safety performance and trigger additional support
where needed.
Supporting the business to operate safely
through business change
The Group’s organisational structure changed in
a number of ways during the year which required
sharpened focus, new ways of working and increased
communication and activity to keep up safety
standards. The Group’s Lost Time Incident (“LTI”)
Frequency Rate improved slightly, while the Severity
Rate remained flat compared to the prior year.
Enhanced site reviews to drive safety
culture change
The site review programme has been overhauled
to better articulate the Group’s safety expectations,
implement key safety culture change programmes
and identify best practice and will make it easier for
teams to see where improvement opportunities lie
and provide more robust assurance. The updated
programme will take effect from January 2025.
Senior leaders engaging
moreon safety
Senior leadership engagement is critical in
driving a positive safety culture, so in 2024
the Group’s top 100 leaders spent more
time visiting branches and holding safety
conversations, helping to demonstrate where
safety sits on the Group’s priority list.
Lost time incident frequency rate Severity rate
2024
3.6
2024
0.05
2023
3.9
2023
0.05
2022
4.7
2022
0.07
0.0 1.0 2.0 3.0 4.0 5.0 0.00 0.02 0.04 0.06 0.08
Lost workdays per thousand hours worked
LTIs per million hours worked
The figures reported do not include Toolstation Europe and agency colleagues
When I visit stores I get the team to
educate me about the safety challenges
they experience. I find it interesting to see
first-hand how some of the decisions my
commercial team make can impact
stores, as well as how we can help them.
The insight enables me to feed into the
Senior Leadership Team’s strategic
discussions in a different way. In fact,
I’ve been so inspired that I’ve asked all
of my direct reports to spend a day a
month in Stores doing likewise.
Rupert Nichols
Customer, Commercial and Supply Chain Director
New charity partner to support wellbeing
Travis Perkins plc has partnered with The
Lighthouse Charity to help its 17,000 colleagues
better look after their own mental health and to help
them signpost support for customers and others
who work in the construction industry.
Lighthouse is dedicated to supporting construction
workers and their families through tough times such as
illness, injury, financial hardship, providing emotional
support, financial aid, and even retraining programmes
to help people get back on their feet. Colleagues tell
us that it is important to them that charity partnerships
benefit those who work within the Group and help
strengthen relationships with customers and suppliers.
What’s next
• Introduce a new second line
of defence safety assurance
programme that assesses
both achievement of
minimum standards, cultural
position and best practice.
• Continued focus on out-of-
branch safety including safe
deliveries.
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Travis Perkins plc Annual Report and Accounts 2024
RewardColleague voice
Listening to colleagues to improve engagement. Improving the financial health of colleagues.
Why it is important
Listening to colleagues can improve engagement
and create a more positive and productive work
environment.
Progress in 2024
Key actions undertaken during the year are detailed
below:
Three senior leader events were held in 2024 to
enable discussion on business and functional plans
and their alignment to the Group’s strategy and to
help the businesses and functions to better support
each other.
• Colleague engagement and development
continued through At My Best conversations, to
align colleague objectives to the Group’s priorities.
• Improved accountability and ownership through
local line manager action plans.
• Continued embedding of the Group’s values.
• Business-level colleague forums and
listening groups.
Engagement survey
• The Group’s annual engagement survey was
carried out in Q4 2024 with participation of 80%.
• The engagement score fell from 73% to 69% due
to poorly implemented restructuring and the
uncertainty created by leadership change.
• The successes identified in the survey were local
line manager feedback, the safety culture and the
ability for colleagues to be themselves.
• The survey identified the need to give colleagues
more clarity following significant change.
Why it is important
Improving the financial, physical and emotional
health and wellbeing of colleagues contributes
towards stable communities and enriches the lives
of colleagues and those around them.
Progress in 2024
The objective for 2024 was to continue to help
colleagues build their financial resilience.
Building better financial resilience
We offer fair pay and a comprehensive package of
benefits and pensions. Depending on performance,
there is also the opportunity for colleagues to earn a
bonus and share in the Company’s success through
share plans and savings programmes.
The Group’s colleagues have continued to use
Wagestream, a financial management and wellbeing
app that allows them to access a portion of earned
salary each month before pay day and allows them
to set up a savings fund directly from their pay.
Colleagues have built short-term savings of almost
£2.2m since the benefit was launched in 2022.
The Group launched a new benefit to encourage
colleagues to save regularly, partnering with
Commsave, one of the largest credit unions in the
UK. Commsave is a not-for-profit financial co-
operative which provides easy access to savings
and loans direct from pay.
There are now 2,700 colleagues across Wagestream
and Commsave who are saving regularly via payroll
each month. As well as providing a critical financial
safety net in times of need, a savings habit builds
financial resilience, reduces financial stress and
contributes positively to overall wellbeing.
What’s next
We will be focusing on incentive structures to drive
engagement and performance. Further support will
also be provided to those approaching retirement
to reflect the challenges of an ageing population.
What’s next
Conduct further analysis of the engagement
survey, ensuring clear actions are taken.
42 GOVERNANCE
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Travis Perkins plc Annual Report and Accounts 2024
SUSTAINABILITY REPORT CONTINUED
Charity and community
Taking pride in helping others and making positive changes happen.
Why it is important
Travis Perkins plc is at the heart of its communities.
As a local employer that supports building projects
across the UK, the Group contributes to local and
national economies. Colleagues take great pride in
being part of a business that supports its customers
and where they can deliver a wide range of
community projects that create positive change.
Progress in 2024
The focus in 2024 was to grow volunteering efforts
and to continue to build charity and community
partnerships that help to deliver on the Group’s
strategy and provide social value for the Group’s
customers and communities.
Volunteering
The Group continued its partnership with Volunteer
it Yourself (“VIY”); a social enterprise that provides
young people with trade skills whilst renovating
community spaces. In addition to part-funding
projects that included the renovation of a Scout
hut and a boxing club for people with special
educational needs and disabilities, colleagues
supported projects with volunteering, providing skills
workshops, mentoring and general support with
gardening, decorating and other renovations works.
Charity partnerships
In 2024 the Travis Perkins business announced a
new charity partnership with Alzheimer’s Society
and Alzheimer Scotland. Over a three-year period,
the business has committed to raising funds,
awareness and understanding to support those
living with Alzheimers.
The Group introduced its first Group-wide charity
partner, The Lighthouse Charity, to support mental
health for colleagues and the wider industry (for
more information see page 40).
Colleagues across the Group also continued to
drive meaningful change by supporting many other
charities and community causes in creative ways.
Fundraising in 2024
What’s next
Continue to use charity and
community partnership and
activity as a way to create
meaningful social change both
nationally and locally, working
with established and new
partners and with a particular
focus on improving wellbeing
for colleagues and customers.
Charity and Social Enterprise partners 2024 contributions
Alzheimer's Society £183k
Centrepoint £11k
Construction Youth Trust £10k
Cynthia Spencer £9k
The Lighthouse Charity £17k
Macmillan Cancer Support £633k
Mind £35k
Prostate Cancer UK £24k
Scottish Action for Mental Health £2k
Variety £26k
Volunteer It Yourself £60k
The Travis Perkins plc property team has
been a supporter of children’s charity Variety
since 2018 and in 2024 the team donated
a Variety “Sunshine Coach” to Northgate
School and Arts College in Northampton.
This school caters for students with special
educational needs and is particularly
focused on preparation for adulthood.
The new Sunshine Coach will be used to
regularly take pupils to and from their work
experience and on educational trips.
Without the support of companies like Travis Perkins, working with Variety,
the children’s charity, our young people would miss out on so much “out-
of-the-classroom” learning. A Sunshine Coach enables us to plan for a
more hands-on, practical curriculum to improve learning opportunities.
Sheralee Webb, Executive Head Teacher, Northgate School Academy Trust
43GOVERNANCE
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TCFD disclosure requirement Location in Annual Report Page(s)
Governance
Disclose the organisation’s
governance around climate risks
and opportunities
Describe the Board’s oversight of
climate-related risks and opportunities
TCFD report – Board oversight and engagement 45
Principal risks report – Climate
change and carbon reduction
65
Describe management’s role in assessing and managing
climate-related risks and opportunities
TCFD report – Board oversight
and engagement
45
Strategy
Disclose the actual and potential
impacts of climate-related
risks and opportunities on
the organisation’s businesses,
strategy, and financial planning
where such information
is material
Describe the climate-related risks and opportunities the
organisation has identified over the short, medium and long
term
TCFD report – Principal risks and opportunities 46
Principal risks report – Climate change and carbon
reduction
65
Describe the impact of climate-related risks and opportunities
on the organisations businesses, strategy and financial planning
TCFD report – Principal risks and opportunities 46
Describe the resilience of the organisation’s strategy, taking
into consideration different climate-related scenarios
including a 2°C or lower scenario
TCFD report – Scenario results 50
Risk management
Disclose how the organisation
identifies, assesses and
manages climate-related risks
Describe the organisation’s processes for identifying and
assessing climate-related risks
TCFD report – Risk and opportunity management 48-56
Describe the organisation’s processes for managing climate-
related risks
TCFD report – Risk and opportunity management 48-56
Describe how processes for identifying, assessing and
managing climate-related risks are integrated into the
organisation’s overall risk management
TCFD report – Risk and opportunity management 48-56
Principal Risks report – Climate change
and carbon reduction
65
Metrics and targets
Disclose the metrics and targets
used to assess and manage
relevant climate-related risks
and opportunities where such
information is material
Disclose the metrics used by the organisation to assess
climate-related risks and opportunities in line with its
strategy and risk management process
TCFD report – Metrics and targets 57-58
Sustainability report – Operating sustainably 34-35
Sustainability report – Modernising construction 30-31
Remuneration report 90-117
Disclose Scope 1, Scope 2 and, if appropriate, Scope 3
greenhouse gas (GHG) emissions, and the related risks
TCFD report – Metrics and targets 57-58
Sustainability report – Operating sustainably 34-35
Sustainability report – Modernising construction 30-31
Describe the targets used by the organisation to manage
climate-related risks and opportunities and performance
against targets
TCFD report – Metrics and targets 57-58
Sustainability report – Operating sustainably 34-35
Sustainability report - Modernising construction 30-31
TCFD
disclosure
Compliance statement
The following disclosure is consistent with the
recommendations and recommended disclosures
of the Taskforce for Climate-related Financial
Disclosures (“TCFD”) as stated in the listing rule LR
9.8.6(8)R. Similar content can be found in the Travis
Perkins Group Carbon Disclosure Project (“CDP”)
Climate disclosure which is available for public
review. The disclosure covers the whole business
and its supply chain and all climate-related risk and
opportunity types, over three time periods, all of
which is detailed in the pages that follow. This is the
fourth year of disclosure under TCFD for the Group.
Further improvements have been made and more
are planned to enhance the disclosure, including
more in-depth analysis by material type to have
greater insight to physical climate risks and
opportunities in the supply chain and to further
assess transitional risks and opportunities. This
will be shared in the 2025 Annual Report and
TCFD Report. During 2024 a desktop review of
material risks and opportunities for three more
material types and also for two customer types was
completed to enhance the Group’s understanding of
supply chain risk.
44 GOVERNANCE
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SUSTAINABILITY REPORT CONTINUED
Governance
Scope and sphere of influence.
The Group’s addressable market for construction
materials is £65bn. The Group has a 7% share of
this addressable market, serving generalist and
specialist customers that range from the smallest
jobbing builder to the largest national contractor
or housebuilder. The Group operates over 1,400
distribution sites and has a turnover of £4.6bn and a
fleet of over 2,500 heavy and light goods vehicles.
Committed to decarbonisation
Decarbonisation of the Group’s businesses and
supply chain remains the Group’s sustainability
priority. For further information see page 26. The
Group has commitments to reduce carbon in line
with a 1.5°C pathway across the value chain. To
monitor delivery of this commitment, the Group has
two key long-term targets which have been verified
by the Science-Based Target initiative (“SBTi”). For
more information on the Group’s carbon agenda see
pages 30 and 34. Pages 57-58 provide details of the
metrics and measures used by the Group to assess
progress.
The Group’s targets are SBTi approved as being
in line with a 1.5°C pathway. By 2035 the Group
targets reduction of Scope 1 and 2 greenhouse gas
emissions (“GHG”) by 80% and Scope 3 emissions
by 63% from a 2020 baseline.
BUILDING FOR BETTER
SUSTAINABILITY PRIORITY
Decarbonising the industry
Modernising
construction
Sourcing
responsibly
Operating
sustainably
Developing the
next generation
DOING THE RIGHT THING
Safety & Wellbeing | Diversity, Equity & Inclusion | Colleague Voice | Reward
Charity & Community | Modern Slavery & Human Rights | Legal Compliance
45GOVERNANCE
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Governance continued
Collaborating to support change
The Group is engaging with the sector to support the
decarbonisation agenda. Sitting in the middle of the
supply chain, the Group recognises the importance
of collaboration, joining together with the industry
to share best practices, collaborate and co-create
solutions.
During 2024 the Group continued its partnership
with the National Retrofit Hub (“NRH”) and the
Group Sustainability Director is co-Chair of NRH
Working Group 2: Supply Chain, Products and
Solutions, to help in showcasing solutions and
encourage retrofit activity and the uptake of more
sustainable and innovative products. The Group also
has representation on sustainability working groups
at the Builders Merchant Federation and the Supply
Chain Sustainability School, to ensure that the voice
of the merchant is well represented and solutions
are created together. As 80% of the properties that
will exist in 2050 exist today, action is needed to
address the current housing and commercial stock
and reduce in-use carbon, in particular moving
away from gas boilers. For more information on
stakeholder engagement see pages 78-80.
The scenario analysis conducted by the Group in
the previous three years has identified that an early
adoption pathway carries the lowest risk for the
Group. Consequently the Group will continue to
advocate for progressive action on climate change in
line with these scenarios, but recognises that a slow
pace of change to government policy and funding
and other constraints in the macro environment
pose a risk to the UK remaining on an early-action
pathway.
Accountabilities
Climate change is a boardroom topic with the CEO
setting the agenda. Carbon strategy is directed
by the CFO with delivery steered by the Group’s
Sustainability Director, Head of Environment and the
Fleet, Property and Commercial teams along with
nominated leads in each of the Group’s businesses.
The Managing Director for CCF Ltd is the Group
Leadership Team sponsor for Modernising
Construction, including Scope 3 carbon reduction.
Board oversight and engagement
The management reporting cycle on the Group’s
climate goals and targets is at least quarterly, with
five sessions with the Group Leadership Team or
plc Board during 2024. The Group has developed
carbon roadmaps (Scope 1 and 2: Buildings and
Fleet, and Scope 3: Product Decarbonisation)
against which progress is monitored by the Group
Leadership Team (GLT) and the Board. Moreover,
the GLT and Board consider the principal climate
risks and opportunities identified via the Company’s
risk identification activities. The Company’s risk
identification activities consider risks emerging from
three future scenarios and over the short, medium
and long term. The Board has recognised the
strategic importance of managing climate-related
risks and opportunities due to the Group’s ongoing
materiality analysis.
For more information on how the Board is apprised
of climate-related risks and opportunities, see the
climate change principal risk on page 65.
The GLT and Board consider climate-related
issues when reviewing and guiding strategy, major
plans of action, risk management policies, annual
budgets, and business plans as well as setting the
organisation’s performance objectives, monitoring
implementation and performance, and overseeing
major capital expenditures, acquisitions and
divestitures.
For example in 2024 the GLT and Board approved
the costs to renew the Group’s renewable electricity
tariff and install further LEDs by the end of 2025
and continued investment in HVO for over 200
heavy goods vehicles (“HGVs”).
Alignment of incentives to carbon
commitments
The 2024 bonus targets for the GLT included
deliverables in line with the Group’s sustainability
ambitions such as further carbon reductions and the
development of more detailed carbon roadmaps.
(see page 105).
In addition, the restricted stock scheme included an
ESG-related performance underpin (see page 95).
46 GOVERNANCE
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L P
M R
H I
SUSTAINABILITY REPORT CONTINUED
Sustainability strategy
Principal risks and opportunities
Risks and opportunities are identified via an assessment
approach which aligns not only with the Group
principal risk process and rating tables but also uses
the risk drivers and types published by CDP. Internal
stakeholders are invited to advise on the relevant risk
and opportunity types, level of impact and speed of risk
materialisation. External stakeholders have shared their
insights on what is material to them through the Group’s
materiality assessment (last completed in 2022)
and ongoing stakeholder engagement. The impacts
from risks and opportunities have been considered in
relation to products and services, supply chain and/or
value chain, investment in research and development,
operations (including type of operations and location
of facilities), acquisitions or divestments and access to
capital. The risk and opportunity identification process
is iterative and informed by scenario analysis which the
Group is developing but recognises is not yet complete.
For more details on the principal risk process see pages
59-61.
Across all three assessed time periods, geographies,
scenarios and risk types the Group does not consider
its direct operations to be very highly exposed to
physical impacts from climate change. The Group is
predominantly a UK-based distributor of products,
with limited non-UK activity and limited manufacturing
activity. Accordingly, the majority of the climate-
related financial risks and opportunities relate to
what is purchased and sold, rather than how it moves
through the Group’s businesses. The table to the
right summarises the Group’s principal risks and
opportunities.
Top climate-related financial impacts
RISK – TECHNOLOGY: TRANSITIONING TO LOWER EMISSIONS TECHNOLOGY
Description:
Risk for the
Group*
Scenario in which
this impacts:
Time period in which
this impacts Parts of the value chain most impacted:
Decarbonisation of the HGV fleet (c.1600 HGVs to transition away from diesel)
H P
R
In-house: Travis Perkins Group
RISK – PHYSICAL: RISING SEA LEVELS AND EXTREME WEATHER EVENTS
Description:
Risk for the
Group*
Scenario in which
this impacts:
Time period in which
this impacts Parts of the value chain most impacted:
Decreased asset values (assumes some branches affected)
L
M P
R
I
In-house: Travis Perkins Group
RISK – REGULATION: MANDATES ON AND REGULATION OF EXISTING PRODUCTS AND SERVICES
Description:
Risk for the
Group*
Scenario in which
this impacts:
Time period in which
this impacts Parts of the value chain most impacted:
Product carbon pricing (assumes a small portion of carbon-related cost price
increases are not passed through)
L P
R
Downstream and Upstream: Customers and
Manufacturers
RISK – MARKET: CHANGING CUSTOMER BEHAVIOUR
Description:
Risk for the
Group*
Scenario in which
this impacts:
Time period in which
this impacts Parts of the value chain most impacted:
Obsolescence of product (assumes some product lines are no longer of interest
to customers aligning with net zero)
L P
R
Upstream: Manufacturers (particularly manufacturers
of gas boilers or high-carbon building fabric materials)
OPPORTUNITY – PRODUCTS AND SERVICES: DEVELOPMENT AND/OR EXPANSION OF LOW EMISSION GOODS AND SERVICES
Description:
Risk for the
Group*
Scenario in which
this impacts:
Time period in which
this impacts Parts of the value chain most impacted:
Rising demand for new product mix and new technologies (to meet changing
building regulations and low-emission targets)
H P
R
In-house: Travis Perkins Group
Upstream: Manufacturers
OPPORTUNITY – RESOURCE EFFICIENCY: USE OF MORE EFFICIENT MODES OF TRANSPORT
Description:
Risk for the
Group*
Scenario in which
this impacts:
Time period in which
this impacts Parts of the value chain most impacted:
Increased revenue opportunity (assumes large customers move business
towards merchants with decarbonised transport options)
L P
R
In-house: Travis Perkins Group
OPPORTUNITY – PRODUCTS AND SERVICES: DEVELOPMENT AND/OR EXPANSION OF LOW EMISSION GOODS AND SERVICES
Description:
Risk for the
Group*
Scenario in which
this impacts:
Time period in which
this impacts Parts of the value chain most impacted:
Rising demand for new product mix and new technologies (to adapt to climate change
(i.e. strengthening flood resilience), and to react to climate events (i.e. extreme weather)
L P
R
In-house: Travis Perkins Group
* Risk ratings are in line with those in the Principal Risks Section on pages 59-69.
Low Proactive
Medium Reactive
High Inactive
47GOVERNANCE
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Timelines
The timelines considered and why they were selected is detailed in the table below.
Time Horizon Description Why chosen
Short
1-5 Years (2022-2027)
This time horizon was chosen to ensure impacts being felt now
and their potential escalation areunderstood
Medium
5-15 Years (2028-2037)
This time horizon was chosen to reflect that scenarios show
limited divergence prior to this point
Long
15-30 Years (2038-2052)
The physical impacts from climate change will magnify over a
longer time period than usual business planning
Strategic response to risks and opportunities
The material considerations in achieving the Group’s
strategic commitment to the transition to a low-
carbon economy include:
• Accelerated trends in product replacement and the
associated changes to the Group’s business model,
including the move away from fossil-fuel boilers.
• The need to adapt the Group’s branches and fleet
to be low carbon or no carbon.
• Changes to customer projects and locations that
may impact the Group’s estate.
• Strong customer and supplier partnerships remain
key in achieving a successful transition.
Carbon transition plan
The Group has shared the roadmaps to 2035 for Scopes 1, 2 and 3 on its corporate website and these now all include interim targets. Key activities include:
Despite tough economic conditions, we’re making progress in
reducing product carbon by engaging with industry partners,
fostering innovation, and driving sustainable practices.
Heinrich Richter
Head of Commercial - Sustainable Products and Services
(1) Reducing the embodied and in-use carbon of
products sold
(Scope 3 represents 99% of the Group’s footprint
with Category 1 (Purchased Goods and Services)
and Category 11 (Use of Sold Products e.g. gas
boilers) representing 87% of this).
• Working with the whole value chain to phase out
the majority of fossil-fuel boilers from sales by
2035. This primarily relates to commercial gas
boilers sold by the BSS business.
• Reducing the embodied carbon in the goods the
Group sells. This will be achieved through
influencing supplier action and supporting their
uptake of new technologies such as carbon capture
and storage and introducing alternative materials
or products where carbon reduction is not viable.
(2) Decarbonisation of the Fleet and Estate
(Scopes 1 and 2 represent 1% of the Group’s footprint)
• Phasing in the use of HVO fuel for diesel engines
as a transition fuel. Over 200 HGVs used HVO
instead of diesel in 2024.
• Introducing electric or alternate technology HGVs
from around 2027. The first electric HGV was
deployed in 2021 as a pilot to inform the Group’s
roadmap and the Travis Perkins Managed Services
fleet now has seven electric vans.
• Taking action to improve the energy efficiency of
both freehold and leasehold buildings.
• 100% renewable energy tariff for all UK sites. This
tariff was introduced in October 2021.
• Continuing to move from gas boilers to air-source
heat pumps and other low-carbon technologies to
heat the Group’s branches and offices.
(3) Climate adaptation plan
The Group has reviewed the physical impact risk
across different warming scenarios for both its own
estate, UK infrastructure and its supply chains. This
information is used to inform:
• Commercial strategy for the medium to long term to
ensure both continuity of supply and a just transition.
• Group property decisions and planning for new site
locations and existing site adaptation.
• Group insurance planning to best manage future
risks and business continuity. Physical climate risk
impacts are rated as low to medium. Early
conversations are underway on this and plans will
evolve more in the coming year.
• Climate risk is now also influencing sales
opportunities for the Group with opportunities to
supply the climate adaptation products needed by
customers.
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SUSTAINABILITY REPORT CONTINUED
Risk and opportunity
management
As climate governance is integrated into business
decision-making, principal risks and uncertainties
are recorded and reported with other business risks
and uncertainties on page 65. The identification of
risks and opportunities around climate change uses
the same complementary likelihood and impact
criteria as other Group risks and the assessment
covers direct and indirect physical and transitional
impacts. In addition, risks and opportunities over the
Group’s three chosen scenarios (Proactive, Reactive
and Inactive), as well as over three timelines (five
years, 15 years and 30 years) are taken into account
by referencing the results of the scenario analysis.
A detailed risk assessment process is conducted
annually to identify any emerging risks and ensure
the assessment of impact from all risks and the
selection of management approach is appropriate.
A risk report is presented to and discussed annually
with the GLT and Board. The Group’s principal
risk list, which includes climate change risk, is also
reviewed by the Board and the Group’s financial
auditors. Details of the most material climate risks
and opportunities have been published annually for
the last 15 years in the CDP climate disclosure.
The uncertainties around impacts are considered via
scenario analysis which is detailed on the next page.
Sizing and scaling of risks and opportunities is
performed in conjunction with internal and external
stakeholders and uses the outputs from the Group’s
scenario analyses, materiality assessments and the
professional judgement of the internal sustainability
team together with external advisers. Decisions to
mitigate, transfer, accept, or control the risks are
made by the risk owners (nominated GLT members)
with confidence to make decisions provided by a
clear carbon strategy, target and roadmaps.
In 2024 the Group followed up the scenario analysis
undertaken in the previous three years with a
desktop review of material risks and opportunities
published by a sample of large materials suppliers
and customer types. All other results published in
this disclosure are from the 2023 scenario analysis.
49GOVERNANCE
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Scenarios and modelling process
†
The scenarios modelled outline possible physical and transitional impacts to 2050 and beyond. The transitional scenarios used are from the Network for Greening the Financial System (“NGFS”) and are the same
scenarios used by the Bank of England in its Climate Biennial Exploratory Scenario publication which explores the financial risks from climate change. The Group selected the scenarios below to illustrate the best and
worst outcomes and the sensitivities involved when identifying future impacts from changes to the climate and society’s response to that change. Note that no additional scenario analysis was conducted in 2024. The
results were instead enhanced through a desktop review of risks and opportunities identified by selected supply chain partners.
Proactive Reactive Inactive
Early action Late action No additional action
Transitional Action taken early and effectively. Global net zero CO
2
emissions
are achieved by 2050. Transition risks arelow.
Action is delayed until 2031 and is more sudden and disorderly.
Higher transition risk and short-term macroeconomic disruption.
No further action is taken on climate change and even current
obligations are not met. Hence GHG emissions grow unchecked.
Transition risks arelow.
<2 degrees mean global warming
Between 2-3 degrees mean globalwarming
>3 degrees mean global warming
Physical Using RCP 2.6. Using RCP 4.5. Using RCP 8.5.
Global CO
2
emissions peak by 2020 and decline to around zero by
2080. Concentrations in the atmosphere peak at around 440 ppm
in mid-century and then start slowly declining.
Emissions peak around mid century at around 50% higher than
2000 levels and then decline rapidly over 30 years and then
stabilise at half of 2000 levels. CO
2
concentration continues on
trend to about 520 ppm in 2070 and continues to increase but
more slowly.
Concentrations of CO
2
in the atmosphere accelerate and reach
950ppm by 2100 and continue increasing for another 100years.
Scenario
assumptions
whichapply to
all three
scenarios
• The retention of current market share in all categories where the Group is active
• The use of a blended construction and manufacturing GVA to project revenue. This assumes the sector moves from unsustainable manufacturing processes to new, as yet unknown, processes and materials
• A 0.5m rise in sea levels is effectively mitigated by sea defence adaptations
• Cost price inflation caused by supply chain mitigation of physical and transitional risks can be substantially passed on tocustomers
• The 166 UK sites, in 166 different towns and cities, assessed for physical climate risk are representative of the Group’s UK sites and infrastructure and inferences about the portfolio risk can be made from the sample
• The expected number of days of business interruption from physical climate change impact are modelled with the Gumbel distribution to best represent extreme events
Scenario
assumptions
whichapply
to specific
scenarios
• Full international implementation of country-level commitments on
climate change action
• Price parity for non-fossil fuel delivery will not be achieved
before 2040
• Current commitments by countries and businesses to GHG
reductions are notmet
† Climate scenarios make projections on hypothetical futures and as such come with a degree of uncertainty. While some of the information obtained from existing climate models have a high degree of accuracy, there is still a level of uncertainty. As a result,
scenario analysis should only be used as a guide for climate-related risks and opportunities.
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SUSTAINABILITY REPORT CONTINUED
Risk and opportunity management continued
Scenario risk lenses
The climate change impact under each of the three scenarios was
considered across a number of risks and opportunities for the Group,
including the following examples.
The transition risk and opportunity assessment considered:
Policy and legal risks
• Carbon pricing
• Enhanced emissions-reporting obligations
• Mandates on and regulation of existing products and services
• Exposure to litigation
Market risks
• Increased cost of raw materials
• Changing customer behaviour
Reputation risks
• Stigmatisation of the sector
• Shifts in consumer preferences
• Increased stakeholder concern or negative stakeholder feedback
Technology
• Costs of lower emissions technology
• Unsuccessful investment in new technologies
• Substitution of existing products and services
with lower emissionoptions
The physical risk and opportunity assessment considered:
• Rising mean temperatures
• Changing precipitation patterns
• Sea level rise
• Extreme weather
• Wildfire
This was taken into account for the Group’s UK estate as well as
UK-wide infrastructure (roads, ports, railways, utility supply, IT
infrastructure), selected supply chain locations and comprehensive
timber supply chain locations. Impacts on the UK workforce due to
physical climate risk were also reviewed.
In future reporting periods the Group will conduct deep dive
assessments on other material types in its supply chains.
Scenario results
Resilience over the 3 scenarios
Scenario Proactive Reactive Inactive
FUTURE COSTS
(resilience)
LOWEST
The proactive scenario aligns with
the Group’s own SBTi approved targets
and roadmaps. Transitional costs (fleet
and estate) have been considered in
line with this roadmap. Product-related
carbon costs are assumed to be
substantially passed through to the
market. Costs from physical impacts of
climate change
are expected to be low to moderate.
HIGHER
The reactive scenario introduces more
risk as policy around climate change is
either too late or too weak, exposing the
Group to higher transitional costs and a
supply chain with less mandate to
change. Costs from physical impacts
remain low to moderate for the UK but
may be higher in the Group’s supply
chains.
HIGHEST
The inactive scenario introduces
reputational risk around target
achievement as there would be no
further changes from the government,
leaving the Group unsupported by
policy to meet its SBTi targets. The
Group’s UK infrastructure will be
impacted by rising sea levels and
flooding by 2050. There will be supply
chain disruption.
The Group’s exposure to financial stress from physical climate change or transitional climate change impacts can be successfully mitigated by
following the adopted strategy and roadmaps outlined in this disclosure. Transitional impacts are expected to be far greater than physical impacts
and the ability to pivot away from some construction materials and technologies and towards the supply of other materials will be key to the
future success of the Group.
The proactive scenario delivers a decarbonised business model in the most efficient way with the best financial outcomes. The Group’s SBTi
approved targets and roadmaps are aligned to this early action pathway.
Summary of transitional risks
There are two predominant transitional risk implications of climate change for the Group – both of which are rated as high-risk. Firstly, impacts on
the ongoing relevance of the products and services that the Group sells to the market. Secondly, impacts on the pace and methods of upgrading
the Group’s own fleet, in line with or ahead of UK policy.
With regard to products and services, the Group’s businesses will need to evolve their product mix and develop services to meet the product,
data and service requirements of a low-carbon construction sector. The analysis has identified a risk of product obsolescence, for example gas
boilers in some markets, and changing customer demand towards materials, products and solutions that reduce lifetime GHG emission levels
from buildings. The Group measures product sales that contribute to a low-carbon economy and is looking at ways of promoting more sustainable
construction in the medium and longer term.
Carbon pricing will introduce a cost to embodied emissions and climate experts are calling for carbon pricing across more sectors and on high-
emission materials such as steel, plastic, cement and bricks (see forecast trends on the following page). In 2023, the EU implemented the Carbon
Border Adjustment Mechanism trial phase, placing a cost on the embedded emissions in certain materials. The UK will likely follow and introduce
a similar mechanism. Whilst the Group has a policy to pass price increases through to customers, thereby not directly taking on these costs,
the market will consider alternative materials, and the Group will need to adapt to remain relevant.
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Steel price
1,600
£/tonne of Steel
1,400
1,200
1,000
800
600
400
200
0
2020 2025 2030 2035 2040 2045 2050
The price of steel after the introduction of a carbon border
mechanism across each climate scenario and timeframe.
Proactive Reactive Inactive
2050
PVC price
1,400
£/tonne
1,200
1,000
800
600
400
200
0
2020 2025 2030 2035 2040 2045
The price of PVC across each scenario and timeframe.
Proactive Reactive Inactive
Cement price
£/Mt
Heat pump installation projections
1.8
Installations (million)
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0
2020 2025 2030 2035 2040 2045 2050
Proactive Reactive Inactive Government target
Heat pump installation projections.
Oil price
Pricing for oil under each of the three scenarios.
Proactive Reactive Inactive
12.2
£/GJ
11.8
11.6
11.4
11.2
11.0
10.8
10.6
2020 2025 2030 2035 2040 2045 2050
12.0
350
300
250
200
150
100
50
0
2020 2025 2030 2035 2040 2045 2050
Proactive Reactive Inactive
The price of cement across each scenario.
In addition to the cost increase of high-embodied
carbon products, there will also be a move to
heating technologies with a lower carbon impact
in-use, such as heat pumps instead of gas boilers.
The data in these charts were modelled by Inspired
ESG as part of the Group’s scenario analysis work in
2023. They were not updated in 2024.
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SUSTAINABILITY REPORT CONTINUED
Risk and opportunity management continued
Climate change risks impact all companies in the Group’s value
chain. By understanding customer and supplier risks we can
consider how to ready our own business as well as how we can
support with climate adaptation products and services.”
Megan Adlen
Group Sustainability Director
The Group’s climate change strategy means it
asks more from its value chain partners in terms
of compliance and innovation. Over the medium
term, the Group’s engagement strategy with its
supply chain will become more targeted on lowering
lifetime impacts. For example, in promoting
innovative and sustainable products to customers
and developing packaging waste solutions. The
Group has expertise in developing low-carbon
solutions that other parts of the value chain will
require and is looking for ways to develop this into
a service. The Group appointed a new Head of
Commercial for Sustainable Products and Services
and Sustainable Product Data Analyst in late 2023
to accelerate this work.
With regard to the Group’s heavy fleet, the
investment required to decarbonise the Group’s
heavy fleet is affordable and is most effectively
deployed in a phased manner. In the last three
years, capital spend requirements to deliver
efficiency programmes have been approved and
have proven to decrease carbon impacts. In 2024,
£14.3m was invested in replacement or new delivery
vehicles and an additional £1m on plant assets
across the network. £406k was invested into HVO
fuel purchase, based on average costs compared to
diesel in 2024. Transport-related carbon reduced by
11.5% in 2024 as compared to 2023.
As a non capital-intensive business with 99% of
emissions in the value chain, an internal carbon
price is not a tool that has been adopted by the
Group to date. Although this will be considered in
future years as a tool to support the business case
for change, particularly in light of the projected costs
for oil under the three scenarios.
Summary of physical risks
The physical risk from climate change to the Group’s
estate in the UK and the UK transport, utility and IT
infrastructure is low to medium as the Group assets
are large in number and geographically spread
providing resilience to the physical impact from a
changing climate.
The physical risk from climate change to the Group’s
supply chain (causing business interruption) is also
forecast as low to medium due to the Group’s ability
to adapt to new supply routes and suppliers and the
assumption that transactions with customers are not
lost but delayed.
The physical risk from climate change to the Group’s
customers (causing delays in developments and
therefore lost or delayed sales) has been explored
initially through a desktop review. This will be
explored further in future reporting years.
A deep-dive on physical risk to the Group’s
UK estate
The scenario analysis for physical risks
(temperature, precipitation, fire and extreme
weather) to the Group’s estate in the UK suggests
broadly similar impacts (low to moderate) for each
of the three warming scenarios. The likelihood of
moderate risks increases in the reactive or inactive
scenarios over time. The analysis suggests that not
all regions will be impacted equally by changing
precipitation, temperatures, wildfire risk or extreme
weather events.
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Direct flood impacts (damages to the Group’s
property, stock and machinery) will likely increase
in the inactive scenario. 45 branches are at direct
risk from river flooding and 73 branches will be
exposed to indirect risks of flooding i.e. affected
transport networks. Annually, Wales, Scotland and the
Northwest receive the most rainfall.
• Heatwaves are predicted to become more likely as
the UK temperature is predicted to rise between
0.67°C and 1.45°C by mid-century (from
a1980–2010 baseline). Extreme temperatures can
disrupt transport networks, reduce employee
productivity, increase the risk of wildfire and
decrease the efficiency of electrical products.
Greater London, theSouth East and South West
will experience the most significant temperature
increases under all threescenarios.
• A forecast 0.5m rise in sea levels would not impact
on all of the Group’s coastal sites and shipping
ports used in the supply chain equally. Sites and
ports in the east of the UK are forecast to be the
most vulnerable to sea level rise. Twenty-one
Group sites could be impacted by 2050 under the
Inactive scenario.
Proactive Reactive Inactive
Timeframe for
0.5m sea level
rise to impact
2110
(86 years)
2080
(56 years)
2070
(46 years)
15% of the Group’s current estate was at risk of
impact from wildfires within 10km of the branch
between 2018–2022, although none directly
impacted the estate or operations. The Group will
keep monitoring wildfires as, whilst less common
than flooding events, they could have a higher
impact per event.
Higher increases
in precipitation
Higher sea level rise
impacts
Regions likely to experience the highest temperature increases under the three scenarios.
Region
Reference period
(1980–2011)
Average daily temperature projection by 2052 (°C)
Proactive Reactive Inactive
Greater London 10.77 11.44 (6%) 11.76 (9%) 12.22 (13%)
South East 10.69 11.36 (6%) 11.68 (9%) 12.14 (14%)
South West 10.48 11.15 (6%) 11.47 (9%) 11.93 (14%)
Regions likely to experience the highest precipitation increases under the three different
scenarios.
Region
Reference Period
(1980-2011)
Annual Precipitation Projection by 2052 (mm/yr)
Proactive Reactive Inactive
Wales 1032 1056 (2%) 1082 (5%) 1066 (3%).
Scotland 1028 1029 (0.1%) 1029 (0.1%) 1053 (2%)
North West 937 962 (3%) 972 (4%) 970 (4%)
The analysis, completed in 2023, confirms that overall physical risk across the Group’s UK-
based estate increases over time but never gets beyond medium in any region. Once impacts
are monetised and seen in the context of the entire estate, the overall impact is considered to
be low to moderate.
The Group will use the insight provided by the scenario analysis to refine its property and
insurance strategies.
Higher increases
in temperature
54 GOVERNANCE
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Travis Perkins plc Annual Report and Accounts 2024
SUSTAINABILITY REPORT CONTINUED
Risk and opportunity management continued
A deep-dive on physical risk to UK
infrastructure
Scenario analysis completed in the previous
financial year included a review of the physical
climate risks affecting the UK infrastructure.
The headlines of this analysis are as follows:
• Roads will be affected by increased precipitation
due to landslide risks and closed roads, in addition
to increased surface water runoff. Extreme heat
can also cause roads to melt. Road disruption
affects both distribution of goods and the ability for
employees and customers to travel to sites.
• Ports will be affected by sea level rises, storm
surges and damage toport infrastructure. Shipping
fees may increase as ports raise handling fees for
repairs after storm damage and port closures
willcause bottlenecks at other ports across the UK.
• Railways will be affected as heat waves can buckle
tracks and flooding prevents trains from accessing
tracks. Secondary risks include landslides and rock
falls which can damage tracks and otherrail
infrastructure.
• Electricity supply will be affected as increased
temperatures cause lower efficiency in electrical
products, including solar panels. Storms can
damage transmission lines and cause wind
turbines to cut out. Storm damage to transmission
lines left over one million people and businesses
without power for a week in 2022. Extended
droughts can impact water availability for
hydroelectric power.
• IT infrastructure will be affected as increased
flooding can corrode buried electrical cables and
high-flowing flood water can damage telephone
masts and other IT infrastructure. High
temperatures impact wi-fi speeds as routers
struggle to send and receive data.
The analysis confirms that the overall risks are low
to medium, and the Group is well placed to balance
the risk with the opportunity to sell products which
prevent or remediate climate impacts.
The Group will use the insight provided by the
scenario analysis to inform its approach to property
locations, energy resilience, logistics planning,
commercial strategy and business continuity.
A deep-dive on physical risk to timber
supply chains
Scenario analysis completed in the previous
financial year included a deep-dive review of the
physical climate risks to timber supply chains.
Globally, climate change is expected to increase the
frequency of extreme weather events, exposing the
timber industry to varying degrees of risk.
Key takeaways from the analysis were as follows.
• Increased carbon in the atmosphere will benefit
tree growth, providing other factors also increase
(water availability, soilnutrients,etc.).
• There is a risk to timber quality as increased
carbon can promote faster tree growth, potentially
making the timber unsuitable for construction
grade requirements.
• Increased heat waves can directly damage foliage
on trees and bake soils, affecting growth rates.
• Drought events limit water availability for tree growth
and can cause reduced yields or tree mortality.
• Wildfire events will be more frequent,
damaging forests.
• Flooding, due to increased precipitation, can
prevent access toforests.
• Warmer climates favour invasive pest and disease
species, threatening trees and ecosystems.
• Storm damage will increase, damaging forests and
also potentially requiring timber to be treated
before it can be used in construction.
The Group is protected in general by its spread of
supply chain partners, enabling continuity of supply
when parts of the supply chain are affected. The
risks of supply chain disruption are rated as low-
medium over the three scenarios. The Group will
use the insight provided to inform its commercial
strategy in order to ensure supply chain resilience
and to work with suppliers to enable them to act
early and support a just transition.
A desktop review of climate risks and
opportunities of sample supply chain partners
A desktop review was completed in 2024
of published climate risk reports from large
manufacturers, in three product categories, and
large customers, from two customer types. The
results are presented on the next two pages.
This research identified that:
• Suppliers and customers carry varying levels of
risk and opportunity related to climate change,
both transitional and physical.
• Companies within each category have “common
risks” (i.e. certain transition risks relating to policy
and markets) but also “company-specific risks” (i.e.
physical risks based on their geographical
locations, for example.)
• Common risks to all company types were physical
impacts, carbon price and supply chain disruption.
• Manufacturers are dealing with the barriers to
creating lower-carbon products while Customers
are dealing with the risks of low availability of
low-carbon solutions – there is progress underway
but a hesitancy caused by technology, market and
policy risks.
Implications for the Group
• The findings do not alter the Group’s climate risk
and opportunity profile. However, the results do
allow for better understanding and work with the
supply chain to navigate the changes ahead.
• For companies that have identified their risks and
opportunities and have adjusted their strategy
accordingly, the Group can work with them to
understand progress and their changing risk profile.
• For companies that have not yet identified their
risks and opportunities, the Group can share
guidance and insights to help them to understand
the changes ahead and to ensure a just transition.
• The Group’s commercial team can use this
information to consider the supplier portfolio and
where other supplier partners may be needed over
time to prevent supply chain disruption.
• The Group’s sales teams can use this information
to consider which customer types need support to
identify lower-carbon products or climate-
adaptation solutions.
• Additional product categories and customer types
will be reviewed in future years to keep aware of
upstream and downstream quantification of
climate risk and opportunity and what this means
for the Group.
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Travis Perkins plc Annual Report and Accounts 2024
Risk type Risk detail
Sample manufacturers Sample customers
Plaster and
plasterboard
Blocks, cements
and concrete
goods Bricks
National
housebuilders Tier 1 contractors
Physical risk
Increase in intensity and frequency of extreme climate events Y Y Y Y Y
Sea-level rise, increase in average temperatures, change in precipitation Y Y Y Y Y
Water scarcity Y Y Y Y
Transition risk – Technology
Availability and cost of raw materials for low-carbon products Y Y Y
Increase in costs for transition to low-carbon technology, energy and solutions Y Y Y Y Y
Risk of lower product demand. New homes weight efficiency over space Y Y Y
Slow technology innovation – CCUS*, hydrogen, low-carbon energy/transport Y Y Y
Risk of new technology quickly becoming outdated Y
Requirement for new skills to transition to new technology Y Y
Transition risk – Market
Increased price of Greenhouse Gas (GHG) emissions Y Y Y Y Y
Increase in production and distribution costs (e.g. for high-carbon materials) Y Y Y
Redefinition of types and nature of materials required Y
Competitiveness risk with respect to imported materials (specific to Europe) Y Y
Disruptions in the value chain (supplies, operations, etc.) Y Y Y Y Y
Risk loss of sales to lower-carbon alternatives or Modern Methods of Construction (MMC) Y Y
Risk of loss of competitiveness on new ranges of low-carbon solutions Y
Risk of loss of competitiveness if low demand for low-carbon solutions Y
Low availability of low-carbon product alternatives, not meeting demand Y
Increased insurance premiums due to higher cost of adaptation measures Y
Transition risk – Policy
Evolution of regulations (product, solutions, carbon reduction) Y Y Y Y
Climate change litigation Y Y Y Y
Extension of EU Emissions Trading Scheme (ETS), or reduction of free allowances on UK ETS Y Y
Poor accounting of full lifecycle of products Y
Burden of enhanced/changing reporting regulations Y Y
Limitation on suitable fuels or materials Y Y
Lack of financial incentives for R&D and low-carbon investment Y
Increased costs or risk of delays from changing housing regulations Y Y
Increased planning or site requirements lower land viability or cause delays Y
Transition risk – Reputation
Continuation of extractive practices and the use of fossil fuels Y
Lack of progress, communication and transparency on climate issues Y Y Y
Changes in consumer preferences regarding the use of new materials Y Y Y
Dissatisfaction of customers with new technology or homes Y
Reduced access to capital or permits – if not meeting expectations Y Y
Greenwash risk from competitors – misleading the market Y Y
Public opposition for companies not meeting expectations Y Y
Challenges retaining/attracting talent – if not meeting expectations Y Y
* Carbon capture, utilisation and storage
56 GOVERNANCE
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STRATEGIC REPORT
Travis Perkins plc Annual Report and Accounts 2024
SUSTAINABILITY REPORT CONTINUED
Risk and opportunity management continued
Opportunity type Opportunity detail
Sample manufacturers Sample customers
Plaster and
plasterboard
Blocks, cements
and concrete
goods Bricks
National
housebuilders Tier 1 contractors
Physical opportunities Impacted built environment in some areas driving demand for product Y Y
Transition opportunities –
Technology
New materials and construction methods for lower environmental impact Y Y
Development of solutions to reduce dependence on raw materials Y
Development of CCUS capability Y Y
Lower operating costs from energy efficiency measures Y
Transition opportunities – Market
Increasing demand for low-carbon and/or recycled products, or MMC Y Y Y Y
Increasing demand to take local climate considerations into account Y
Rising energy prices (e.g. need for energy saving products, etc.) Y
Recognition of thermal mass benefits Y Y
Increasing demand for, and affordability of, green new homes and other developments Y Y
Green mortgage and energy efficiency cost savings allow for premium charge Y
Home buyers can borrow more with a green mortgage and get a larger home Y
Land buying and local partnerships enhanced with low-carbon homes Y
Sustainability performance opens green financing (lower interest rates) Y
Demand for retrofitting services including prioritisation over new build Y
Increasing demand for climate adaptation measures and climate-resilient buildings Y
Transition opportunities – Policy
Changes in regulations related to site operations (GHGs, Energy Performance Certificates (EPCs)) Y
Changes in regulations relating to product (recycled, low-carbon, labels) Y Y Y
Changes in local regulations due to regional climate conditions Y
Credible accounting of full lifecycle of products Y Y
Lower carbon tax exposure where carbon reductions are made Y
Transition opportunities –
Reputation
Consumers’ need for transparency concerning environmental impact Y Y Y
Investors’ need for transparency concerning environmental impact Y Y Y
Greenwash risks well managed – allowing credit to be given where due Y Y
Increasing expectation of colleagues for sustainable business – talent attraction Y Y
Lower cost of capital opportunity Y
To note:
The companies reviewed often described their risks and opportunities differently or allocated them to different risk/opportunity types. Sensible
decisions were made to consolidate this information and results are indicative only.
The companies reviewed had ranked their risks and opportunities according to severity. This is not presented in the table above to keep the summary
simple as all companies only presented “material” risks and opportunities.
Whether one or all companies assessed listed a particular risk or opportunity, a “Y” was added to the table. The results show the breadth of risks and
opportunities, and the differences by company type, rather than a weighting.
Companies reviewed:
Plaster and plasterboard – Saint Gobain (parent company to British Gypsum)
Blocks, cements and concrete goods – Forterra, Heidelberg Materials, H+H, Marshalls, Tarmac, Tobermore
Bricks – Forterra, Ibstock, Wienerberger
National house builders – Barratt Developments, Taylor Wimpey
Tier 1 contractors – Balfour Beatty, Wates Group
Note: Sample companies selected based on availability of data (not all companies have published climate risk reports) and were limited to a small,
representative sample.
Note: As only large listed (originally) and large private (recently) companies are required to publish information on climate risk, the research shows the
naturally higher risk profile of large companies. Much of the Group’s customer base is SME trades who have not published climate risk reports and
would be unlikely to identify with many of these risks and opportunities.
57GOVERNANCE
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Travis Perkins plc Annual Report and Accounts 2024
Metrics and KPIs
Major
emissions
categories
Other
emissions
categories
The Group sets out performance against a number
of environmental KPIs, including absolute carbon
reduction and performance against targets and
additional detail on energy consumption. The Group
has also included interim targets within the three
carbon reduction roadmaps (buildings, fleet and
Scope 3).
KPIs and metrics which align to the Group’s material
climate-related risks and opportunities are set out in
the table below. For additional detail required under
Streamlined Energy and Carbon Reporting (“SECR”)
please see the table on page 185.
The carbon KPIs are measured using the GHG
protocol, are independently verified by LRQA
and accepted by the SBTi. More details about the
methodology can be found on the Group’s website
(www.travisperkinsplc.co.uk/sustainability). The
Group’s net zero target follows the UK government’s
definition of total Scope 1 and 2 carbon emissions
that are equal to or less than the emissions the
Group removes from the environment. Data points
from prior years may have been restated where
better data is now available.
Carbon data table
The Group has reported on all of the emission
sources required under the Companies Act 2006
(Strategic report and Directors’ reports) Regulations
2013. The numbers reported include data for
companies where Travis Perkins plc has operational
control. Scope 1 and 2 emissions are calculated
using the DEFRA Conversion Factors for Company
Reporting 2024 on an operational control basis.
Scope 3 emissions are calculated using EcoInvent or
DEFRA factors, Environmental Product Declarations
(“EPDs”) or other Life Cycle Assessment (“LCA”)
data. Specific data points in the carbon chart and
the carbon data table, marked with the logo
, have
been assured against Lloyd’s Register verification
procedures. For a link to the assurance report
see page 35. The following two footers relate to
references in the carbon data table on the following
page.
1. Fugitive emissions from domestic refrigeration and building
air conditioning are excluded as they are not material to the
Group’s overall emissions.
2. Scope 3 data quality improved in 2024, due to data
corrections and the use of Environmental Product
Declaration carbon data where available within Category
1: Purchased Goods and Services, instead of estimated
emissions factors. The data methodology for Scope 3 is
shared on the website https://www.travisperkinsplc.co.uk.
Total emissions Scope 1, 2 and 3
(tonnes CO
2
e) 6,530,092
Scope 3 % of total emissions 99%
Breakdown of the Group’s 2024 Scope 3 carbon by category
Category 11: Use of sold products – 52%
Category 1: Purchased goods and services – 36%
All other categories – 12%
Category 4: Upstream transportation and distribution – 6.59%
Category 9: Downstream transportation and distribution – 2.01%
Category 12: End-of-life treatment of sold products – 1.58%
Category 10: Processing of sold products – 1.07%
Category 13: Downstream leased assets – 0.52%
Category 3: Fuel and energy related activities – 0.43%
Category 2: Capital goods – 0.42%
Category 6: Business travel – 0.09%
Category 7: Employee commuting – 0.07%
Category 5: Waste generated in operations – 0.01%
58 GOVERNANCE
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Travis Perkins plc Annual Report and Accounts 2024
2024
2023
2020 (Baseline)
Performance in
2024 vs 2023
Targets
(with 2020
baseline)
Performance in
2024 against
2020 target
baseline year
UK Non-UK Total* UK Non-UK Total* UK Non-UK Total* %* %*
Energy GWh
Operational carbon
GWh energy
Annual energy use relating to gas, purchased electricity and transport
fuel (for SECR compliant kWh data see the data table on page 185)
268 9 277 306 6 312 334 5 340 (11)%
Carbon Dioxide Equivalent (CO
2
e) Tonnes
Scope 1
Direct emissions from burning gas and solid fuel for heating and from
road fuel use for distribution
1
44,440 1.097
45,537
51,325 501 51,826 60,656 641 61,297 (12)%
Scope 2
Indirect emissions from the Group’s use of electricity
0 402
402
0 856 856 17,333 461 17,794 (53)%
Scope 1 and 2 Absolute
44.440 1,499
45,939
51,325 1.357 52,682 77,989 1,102 79,091 (13)%
Net zero by 2035
(min. 80% reduction)
(42)%
Scope 1 and 2 Intensity
Tonnes Scope 1 and 2 emissions per £m of revenue
9.8 13.1
9.9
10.7 11.3 10.8 21.3 15.7 21.2 (9)% (54)%
Scope 1 and 2 Intensity *NEW KPI*
Tonnes Scope 1 and 2 emissions per tonne of product sold
0.0055 0.0927 0.0057 0.0062 0.0964 0.0063 (10)%
% of fleet (inc. MHE) that is low-carbon in use (either electric,
hybrid or alternate fuel)
42% 25% 16% 17 ppt
Supply chain carbon
Scope 3 Absolute
2
Indirect emissions from the supply chain. Including all Scope 3 categories
6,244,830 239,323
6,484,153
6,666,567 292,988 6,959,554 8,466,700 424 8,467,124
(7)%
63% reduction
by 2035
(23)%
Scope 3 Intensity
Tonnes Scope 3 emissions per £m of revenue
1,374 2,088
1,391
1,401 2,448 1,426 2,316 6 2,274 (2)% (39)%
Scope 3 Intensity *NEW KPI*
Tonnes Scope 3 emissions per tonne of product sold
0.779 14.794 0.807 0.802 20.807 0.836 (3)%
% heat generators sold which are low carbon (i.e. heat pumps, solar thermal
or electric boilers)
19.00% 10.7% 8.3 ppt
% of Group product spend with suppliers engaged on decarbonisation
(carbon calculated and targets set)
61% 57% 1% 4 ppt
Total
carbon
Scope 1, 2 and 3 Absolute
6,289,270 240,822 6,530,092 6,717,892 294,345 7,012, 237 8,544,689 1,526 8,546,215 (7)% (24)%
SUSTAINABILITY REPORT CONTINUED
* Note that figures stated are rounded to a sensible whole number or decimal point.
Totals or percentages reflect true not rounded number calculations.
1 and 2: See previous page for more information on these two points
59GOVERNANCE
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Travis Perkins plc Annual Report and Accounts 2024
STATEMENT OF PRINCIPAL RISKS AND UNCERTAINTIES
Maintaining a dynamic and effective risk management process is central to the successful delivery of the Group’s strategic objectives and
building resilience, as the Group continues to navigate a challenging external environment, an evolving risk landscape and continued uncertainty.
Risk management framework
The Group takes a balanced approach to manage risks in a proactive, efficient and effective way, targeted at the most significant risks, particularly where there is a low tolerance for risk or uncertainty. The risk management
framework considers risk from both a “top down” and “bottom up” perspective, to support a comprehensive and common understanding of the risks and opportunities and their potential impact on the achievement of the
Group’s strategic priorities, and to provide a multi-layered approach to the review and management of risk. The approach and key responsibilities remain consistent with prior years, as set out in the diagram below:
Key activities
Risk appetite – An annual Board exercise to consider the nature
and level of risk it is prepared to accept to deliver the strategy
Risk identification – Key review and decision-making processes
capture risks, including reviews of strategy, major programme
and performance
Risk assessment – Risks are prioritised using a standard scoring
mechanism and compared to appetite
Risk response – Action is taken, if possible, for risks outside
appetite. Risk acceptance is formalised
Reporting and monitoring – The Board, Audit Committee and
GLT receive regular risk reports and challenge and agree the
Group’s principal risks and mitigation strategies twice a year
Emerging risks and issues – areas of change are monitored
through regular risk activities, assurance processes and horizon
scanning
Internal control and assurance framework – a “three lines”
model to confirm effective risk management
TOP DOWN
Board – Audit Committee
– GLT – Risk function
Activities focused on the assessment and
mitigation of material risks to the Group’s strategy,
business models andoperations
The Board
• Overall responsibility for risk management and internal control,
reviewing effectiveness annually
• Reviews and selects the Group principal and emerging risks
and approves related disclosures
• Sets the risk appetite and monitors adherence
The Audit Committee
• Regular assessment of the risk management framework, and
development activities
• Monitors the results of key assurance processes
• Provides assurance to the Board on the effectiveness of risk
management and financial, compliance, and operational
controls
The Group Leadership Team (“GLT”)
• Undertakes regular top-down risk reviews
• Monitors key risks particularly in relation to safety, programmes
and performance
Business and functional leadership
• Responsible for control, compliance with minimum standards
and the active management of risk for their area
The Risk function
• Maintains the risk management framework
• Co-ordinates “top down” reporting, horizon scanning and risk
disclosures
• Reviews and challenges risk content and the quality
of mitigation plans
BOTTOM UP
Risk Function – Business
and Functional Leadership
– Major Programmes
Activities across the Group that capture and
assess significant risks at a business unit,
programme or functional level
Further details on the Group’s risk management responsibilities and oversight are set out in the Corporate Governance report on page 74.
60 GOVERNANCE
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Travis Perkins plc Annual Report and Accounts 2024
STATEMENT OF PRINCIPAL RISKS AND UNCERTAINTIES CONTINUED
Risk appetite
The Board accepts that, in order to achieve its strategic objectives, and generate suitable returns for
shareholders, it must accept and actively manage a certain level of risk. The Board undertakes an exercise,
at least annually, to consider the nature and level of risk it is prepared to accept to deliver the strategy and
to set its resulting risk appetite. Following a comprehensive restatement of risk appetite last year, the Board
has reviewed and updated its position during 2024. No significant changes were made during the year, and
the risk appetite statements for the principal risks were approved by the Board. These are used to define the
risk-taking parameters for all significant activity within the business.
The risk appetite continues to balance opportunities for growth and business development in areas that
present a clear opportunity for reward, against a low risk tolerance for activities that offer little commercial
advantage or that may present a significant safety, legal, regulatory or reputational risk.
The Board also considered the principal risks in the context of risk appetite and assessed current and
planned mitigating activities to ensure that these key risks are being managed within the stated appetite.
Principal risks
The Group operates in an industry and markets which, by their nature, are subject to a number of inherent
risks. In common with many large organisations, the Group is also influenced by a complex set of external
factors, including geopolitical and economic risks, which have continued to bring uncertainty during 2024.
The principal risks that are considered to have a potentially material impact on the Group’s operations and
achievement of its strategic objectives are set out below. Further detail in respect of the potential risk impact
and the mitigating actions taken is explored on the following pages. The scope and potential impact of risks
will change over time. As such the risks set out below should not be regarded as a comprehensive statement
of all potential risks and uncertainties that may manifest in the future. Additional risks and uncertainties that
are not presently known, or which are currently deemed immaterial, could also have an adverse effect on the
Group’s future operating results, financial condition or prospects.
The Board and GLT assess the Group’s principal and emerging risks at least twice a year, with a detailed
assessment of external and internal developments and influences on the risk set.
The existing principal risk set remains relevant and appropriate, and no risks have been added or removed in
the latest risk review. Whilst each of the risks and associated mitigations continue to evolve, the overarching
trends and inherent risk levels are assessed to be broadly consistent year-on-year. The Board has discussed
risk trends and influencing factors, and as set out in the half year results, the trend for the Managing Change
principal risk was updated to Increasing as a result of the large-scale change experienced by the Group during
2024, including the appointment of a new CEO and Chair and implementation of new systems. The risk
trend relating to Macroeconomic Volatility was also updated to Limited change year-on-year to reflect a
relative stabilisation in the level of uncertainty in the macro environment impacting the Group.
Figure 1 – Principal risks: at a glance
Risk category Principal risks
Strategic
objective
Risk trend
Inherent
risk
1
2024 2023
External 1. Long term market trends ABCD High
2. Macroeconomic volatility AE
High
3. Supply chain resilience BC
High
Strategic 4. Managing change ABCDE
Medium
5. Climate change & carbon reduction D
High
Technological 6. Cyber threat and data security D
High
Operational 7. Health, safety & wellbeing D
Medium
8. Legal compliance D
Medium
9. Critical asset failure BCD
Medium
1 Risk is stated before the application of control. Key
New
Increasing
Decreasing
Limited change year-on-year
2024 strategic objectives: A Operating & leading in attractive markets B An efficient and sustainable operating model
C Maximising the potential of Toolstation D Leveraging the scale of the Group E Delivering attractive financial outcomes
Principal risks heat map:
1
2
3 4
5
6
7
9
8
After mitigating action or controls
Impact
Likelihood
Key disruptive risks that may impact the viability of a strategy or business model are also identified and
managed. The Group does not currently consider any of these to be standalone principal risks. Several
of the risks set out below, particularly long-term market trends, include elements that can be considered
disruptive in nature, however they are categorised in the table above according to the primary driver of the
risk for the Group.
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Emerging risks
The risk environment in which the Group operates will continue to evolve as a result of future events and
uncertainties, and awareness of related emerging risks forms part of the overall risk assessment process.
The Group seeks to capture emerging risks that do not currently present a significant risk but which may
have the potential to adversely impact its operations in the future. This enables the Group to monitor and
understand the potential implications and build these into the decision-making processes at the right
time. The Group identifies new and emerging risks through a process of horizon scanning that includes
assessment of our risk set against a diverse set of external benchmarks, alongside perspectives on emerging
risks collated from assessments made by the business and functional leadership teams and
the results of assurance activities.
Unrest across the Middle East and the war in Ukraine continue to be monitored as potential risks in relation
to the Group’s supply chain and macroeconomic volatility more generally, and the Group continues to ensure
compliance with relevant trade sanctions. Changes following globally significant elections during 2024 will
be closely monitored, and the Board remains watchful of developments which may impact the Group. There
are no other emerging risks considered significant enough to report at this time.
Long-term market trends
Inherent risk:
High
Relevance:
Industry-wide
Risk
Trend:
Description
The construction sector is changing, driven by both macro and sector-specific factors. In the short term,
the sector saw an improvement following the pandemic, only to be then impacted by multiple macro
factors: a recession in the UK, global economic instability and a change of government. In the long-term,
there are multiple opportunities and risks for the Group:
• The housing shortage in the UK, covering both private and social housing, presents significant
opportunity for the Group. A growing population and desire for home ownership both fuel long-term
demand. New government targets look to increase the number of houses built each year, however the
ability to deliver on this target in the next five years is considered a significant challenge.
• A growing productivity challenge in the construction sector needs to be addressed alongside an
increasing scarcity of technical knowledge and a more general labour shortage.
• The challenges presented by the age and condition of existing housing stock in the UK, further
impacted by the need to meet the Decent Homes Standard.
• Manufacturers of the materials and products sold by the Group may look to sell directly to end
customers. Disintermediation has the potential to increase in a challenging economic environment
where customers are more price sensitive and proposition differentiation becomes less important.
• ESG factors are becoming more fundamental to long-term success but are challenging to address,
requiring investment and broad engagement across the sector.
• Changing UK legislation and a move to modern methods of construction drives a need to manage
changing building standards and the future framework for heat in buildings through the products
and services offered by the Group.
Mitigation
Whilst current macroeconomic conditions are challenging, the long-term fundamental drivers of the
Group’s end markets remain robust. The UK faces a shortage of new and affordable housing, alongside a
significant backlog of maintenance and improvement work on public sector assets and the need to
decarbonise an ageing housing stock is growing in urgency.
The Group is well positioned to partner with the construction industry to address these challenges. Its
balanced portfolio of businesses all hold #1 or #2 positions in their markets and benefit from a diverse
end market exposure, from small independent builders to large national contractors.
The Group has five focused businesses serving specific construction markets. There is local
empowerment to serve small trade businesses and the general builder. This is then complemented by
specialist propositions for larger contractors that have the technical capability to add value.
The Group has a nationwide network, with purchasing power of over £3bn annually, built upon a wide
product range with strong availability and relationships. The Group continues to be underpinned by its values
and doing the right thing, whilst continuing to develop an efficient and sustainable operating model.
The Board conducts an annual review of strategy, which includes an assessment of likely competitor
activity, market forecasts and possible future trends in products, channels of distribution,
disintermediation threats and customer behaviour.
The Group maintains a comprehensive tracking system for lead indicators that influence the market for
the consumption of building materials in the UK.
Impact: Adverse effect on financial results; loss of market share
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STATEMENT OF PRINCIPAL RISKS AND UNCERTAINTIES CONTINUED
Macroeconomic volatility
Inherent risk:
High
Relevance:
Industry-wide
Risk
Trend:
Description
The Group’s operations are predominantly based in the UK, serving UK customers, with a small presence in
the EU. These operations place some reliance on a multi-territory supply base that exposes the Group to
much wider macroeconomic and geopolitical uncertainty.
The UK continues to face a range of macroeconomic challenges including, along with many of the countries
from which the Group also sources product, weak demand in the construction sector (driven in part by
persistently high interest rates) and an increasing tax burden on both individuals and businesses.
Alongside general economic conditions, Group performance is affected by a number of specific drivers
of construction, RMI and DIY activity. Whilst current trading conditions remain challenging, the Group’s
lead indicators, which include the volume of housing transactions, house price inflation, and consumer
confidence, suggest an improving outlook. However, the timing and strength of a recovery in the UK
construction sector remains uncertain and is likely to vary across specific segments.
Continued uncertainty in the external environment could negatively impact the Group’s ability to grow
market share and deliver an improved trading performance. A stable government with a large majority,
however, does provide a more reassuring backdrop and potentially will encourage increased investment
in the UK. The Autumn 2024 budget may offer some opportunities for the Group through increased
infrastructure investment but the additional taxes levied on employers to support this investment will
require mitigating management actions. The new Government’s target of building 1.5 million new homes
over the next five years is unlikely to be achieved but the intent, alongside positive steps to reform the
application of planning laws, is supportive for a recovery in new housebuilding activity which the Group is
well placed to benefit from.
Mitigation
The Group remains confident in the long-term resilience of its diverse end markets, which are showing
early signs of recovery, but needs to consider capital investment and overhead management carefully
given the uncertainty regarding the speed and scale of a recovery in UK construction demand. Actions
taken in 2024, such as the consolidation of the Group’s Commercial and Supply Chain functions, and
modernising of key technology platforms, will deliver operational efficiencies whilst ensuring the Group is
in a strong position to respond to the anticipated recovery in underlying markets when this begins to
materialise.
The Group continually reviews pricing strategies and product availability across each of the businesses.
Policy and legislative changes that may impact the Group are monitored and, where appropriate, actions
taken to ensure the Group is adequately prepared to address relevant changes.
The Group has a conservative hedging policy to reduce its exposure to currency and energy price
fluctuations.
The Group has committed debt facilities of £800m, including a £375m revolving credit facility that was
renewed in November 2023 with a five-year term plus a two-year extension option.
The Group has balanced supporting colleagues at a difficult time with adjusting the cost base to reflect
market conditions. Colleague salaries were reviewed in April 2024, with lower paid colleagues supported
with a larger pay increase whilst higher paid colleagues received a more modest uplift.
Impact: Operational disruption; adverse effect on ranging and/or price, customer service and financial results
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Supply chain resilience
Inherent risk:
High
Relevance:
Industry-wide
Risk
Trend:
Description
A resilient supply chain is a critical factor in serving customers and achieving strategic objectives.
There is both breadth and depth in the supply chain. Sourcing is undertaken across the globe and the
Group sells a wide range of products, from materials such as timber through to power tools comprising
many components. The smooth operation of this extensive supply chain may be disrupted by many events
and circumstances outside of the Group’s direct control including public health crises, geopolitical and
macroeconomic factors, industrial action, transport network disruption and climate impacts.
In certain product categories, the Group faces risk in relation to key supplier dependencies, where there are
limited alternative options. The Group is the largest customer to a number of our suppliers and, in some
cases, those suppliers are material enough to cause significant difficulties and disruption if they are unable
to meet their supply obligations. Alternative sourcing may be possible, but the volumes required and the
production time needed could impact availability.
ESG matters are increasingly important to the Group and its customers: sourcing responsibly is a strategic
focus area. This places additional requirements on the supply chain, which may increase over time. This is a
means to assess supplier resilience but if suppliers do not meet the Group’s standards it could further
restrict supplier options.
Mitigation
The Group maintains strong relationships with its key suppliers and continuously works with them to agree
mutually beneficial contracts, conduct due diligence in line with its commitment to responsible sourcing, and
ensure a continuous supply of quality materials.
Where possible the Group has multiple sourcing strategies for key products, to reduce the effect of a
supply failure. The Group keeps stock levels under constant review and has a track record of effectively
managing availability issues in conjunction with suppliers.
Potential impacts to the Group’s supply chain from geopolitical developments are closely monitored.
During 2024 the Group’s Commercial function was restructured, with teams now aligned by product
category, eliminating duplication, lowering costs and enabling the Group to build broader category
expertise alongside harmonising ranges and trading terms. The changes will also enable the development
of a Group-wide customer proposition.
Investment in the Group’s distribution capabilities has continued in 2024, with a number of actions taken
to consolidate the Group’s supply chain, drive efficiency, and reduce risk where possible, including:
• Closure of Toolstation distribution centres in Bridgwater and Daventry in order to drive long-term
efficiencies from the investment in the Pineham distribution centre.
• Consolidation of the Group’s timber supply chain with the closure of the King’s Lynn and Tilbury
timber supply centres.
• Closure of the Benchmarx assembly facility in South Molton with kitchen cabinets now solely
assembled at the Group’s Primary Distribution Hub in Northampton.
The Group holds Authorised Economic Operator status as a preferred importer in order to reduce
potential customs delays.
Published Supplier Commitments clearly articulate the Group’s expectations. Independent checks are
undertaken at the factories producing products for the Group, covering ethical, safety, environmental,
financial and quality factors. The results of these checks are kept under review with action taken as
necessary to address any concerns. Guidance is provided for suppliers and workshops are held to help
them to improve and protect their own operations and supply chains.
Impact: Adverse impact on ranging and/or price, customer service and financial results
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STATEMENT OF PRINCIPAL RISKS AND UNCERTAINTIES CONTINUED
Managing change
Inherent risk:
Medium
Relevance:
Company specific
Risk
Trend:
Description
Embracing and effectively navigating change is fundamental to the Group’s future success.
The ability to attract, retain and develop colleagues, or add capability through targeted acquisitions or
partnerships, is central to ensuring that the Group has the right skills and experience to deliver its
strategic initiatives. The Group increasingly competes for skills nationally and internationally and, in key
areas such as data analytics, the demand for skills may increase recruitment time and costs. Market
forces could make it harder to secure capabilities key to strategic delivery.
Technology-enabled business change
The Group has embarked on a number of major technology projects to underpin its operations, enable
the future growth plans and meet customers’ changing needs. Delivering the systems and associated
business change required is key to achieving these objectives.
In adopting a more agile, incremental approach to business change, enabled by technology, the Group
needs to manage an extended transition period where old and new technologies must successfully
co-exist.
Against a backdrop of economic uncertainty and difficult trading conditions, the pace of delivery may
need to flex with available resources, which could lead to missed opportunities or delays to access
operational benefits and/or deliver on strategic priorities. The Group has not delivered significant
technology change for a long time, and through the projects undertaken in 2024, a need to further build
our internal skills base and expertise has been identified, to ensure the business is better positioned and
prepared to undertake future change.
Mitigation
A Group-wide “Idea to Live” process is used to prioritise, approve and manage change initiatives in a
transparent and consistent way.
Dedicated teams deliver major programmes with external expertise added to support when necessary.
Programmes consider the related capability requirements and the options to buy or grow the skills
needed for a strategically significant opportunity.
Major programmes are sponsored by a designated GLT member. Defined governance structures are in
place, including programme Steering Committees, and oversight of programme assurance at the Audit
Committee. Regular Board reporting and the monthly GLT Programme Review to assess progress,
milestones, risks, interdependencies and key decisions.
The transition of finance processes into the Kerridge system is now complete, and the system will be
rolled out to the branch network in 2025, facilitating significant modernisation of the technological
landscape in BSS.
Oracle Financials was implemented across the other merchanting businesses, and will continue to deliver
significant technological and business process enhancements, resulting in a more robust control
environment.
The Group undertakes post-investment review exercises to assess the success of change programmes, in
both financial and non-financial terms. If projects do not deliver against expectations, the “lessons
learned” inform future programmes.
Impact: Failure to deliver the strategy; adverse effect on financial results, shareholder value, colleague engagement
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Climate change and carbon reduction
Inherent risk:
High
Relevance:
Industry-wide
Risk
Trend:
Description
Climate change will significantly impact the construction sector during the transition to a low-carbon
environment. The nature, extent and scale of that change remains unclear although headline risks and
opportunities have been forecasted through climate scenario analysis. The Group is committed to
helping the industry decarbonise by providing low-carbon products, supplied through efficient
operations, to produce improved outcomes for communities.
This commitment not only promotes a sustainable business model, but also supports progress against
the Group’s carbon targets and influences the wider industry, to mitigate the significant threats posed by
climate change.
The Group’s top climate-related risks relate to:
• The move to a low-carbon fleet, given the Group has one of the largest UK vehicle fleets;
• Increasing costs of goods due to producer country carbon pricing mechanisms;
• The ability to transition to new lower-carbon product categories; and
• Product obsolescence for higher-carbon product categories.
Delivering the Group’s carbon reduction targets will be challenging. It requires significant investment and
engagement with the wider construction products industry to reduce supply-chain and product carbon.
In a difficult economic environment, both the Group and the wider industry must collaborate to deliver
this change amid short-term capital expenditure restrictions which could limit progress and shorten the
target period for investment.
Environmental matters are increasingly important to colleagues, customers, suppliers, investors and
government, driving changes to demand, expectations and information requirements, which the Group
must identify and effectively respond to.
Mitigation
The Group regularly identifies its most material climate-related responsibilities and challenges in order to
target investment and drive effective mitigation. Governance is led by the Board, which receives regular
reports on the most material climate risks and opportunities, the action taken and the progress made.
The Group has made progress against its SBTi accredited targets, which are underpinned by clear
roadmaps for delivery in each business, although absolute reductions will also have been impacted by
recent volume declines.
The Group allocates capital to meet its commitments. The Group completed its roll-out of new electric
forklift trucks, replacing diesel alternatives and saving around 5,000 tonnes of carbon a year. The Group
has also invested in HVO as an alternate fuel in 37 branches, serving 210 HGVs in 2024. The LED roll out
also continues across the branch network.
A key element of plans to address Scope 3 carbon emissions is engagement throughout the whole
supply chain. The Group is working closely with suppliers to collect Environmental Product Declarations in
order to extract and better use carbon data and provide customers with information to support Scope 3
reductions. By the end of 2024, 14% of the Group’s spend was backed by high-quality carbon data
(Environmental Product Declarations or other Life Cycle Assessments) at a product level, with work
ongoing to continually improve this coverage. Collaboration and engagement with suppliers and
customers on decarbonisation continues with either tailored support or wider industry working groups
and events.
Alongside targeted investments and ongoing engagement, developments to support ongoing carbon
reduction in 2024 include:
• Development of a product-carbon report for customers by CCF, soon to expand to the Group. This
builds on the previously developed delivery-carbon report.
• Investment in the renewables category team to expand the Group’s offering and support customer
adoption of new technology.
Further information on progress made during the year can be found in the Sustainability report on pages
30-31, 34-35 and 57-58.
Impact: Adverse effect on reputation, financial and/or operational performance; competitive disadvantage; less attractive as an investment stock
66 GOVERNANCE
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STATEMENT OF PRINCIPAL RISKS AND UNCERTAINTIES CONTINUED
Cyber threat & data security
Inherent risk:
High
Relevance:
Industry-wide
Risk
Trend:
Description
Events in the last year highlight how geopolitical crises and technological changes increase the risk of
cyber attacks. Sophisticated, targeted and increasingly frequent cyber-crimes represent a real and
present risk to all Group businesses, particularly given the drive to accelerate application development to
support the expanding adoption of digital services by customers large and small. Risks associated with a
growing digital footprint are further exacerbated by geopolitical tensions, cyber warfare and
advancements in highly disruptive new technologies, such as artificial intelligence.
Incidents impacting the confidentiality, integrity and availability of the Group’s data and systems could
disrupt customers and the supply chain. Theft and misuse of confidential data, damage to or
manipulation of operationally critical data or interruption to technology services would have a serious
consequential impact on the Group’s reputation, ability to trade and the risk of fines relating to non-
compliance with regulations, including the Payment Card Industry Data Security Standard and General
Data Protection Regulation.
The Group currently assesses its main risk of attack to be from opportunistic criminals seeking financial
gain either from the theft and sale of personal data or encrypting data to demand ransom payments,
either directly or as the result of supply-chain attacks. The Group has seen a year-on-year continued
increase in the volume, frequency, and sophistication of attempted cyber-attacks, which aligns with
broader trends.
As the Group continues to drive digital change to meet customers’ expectations and obtain competitive
advantage, the underlying data that powers these services is of increasing value to cyber criminals.
In executing the technology, data and security strategy, the Group will move away from legacy internally
hosted systems and transition to new cloud-based services, with enhanced native cloud security
capabilities that will improve the overall security maturity and posture for the Group.
Mitigation
The Group is proactive in ensuring it meets its responsibilities and legal obligations in respect of
information security and compliance, taking a risk-based approach in relation to people, process and
technology to reduce the overall likelihood and impact of cyber incidents.
To ensure the Group stays ahead of evolving threats, it is essential to maintain the security of its network
edge perimeter, infrastructure and sensitive data, while continuing to build cyber resilience into
technology-driven digital processes. Key elements of the framework to achieve these aims include:
• Modern XDR endpoint protection and continuous threat hunting to rapidly identify potential
vulnerabilities and attack vectors rapidly.
• Regularly reviewing, updating and rehearsing incident capabilities, including lessons learnt from
attempted attacks and threat intelligence sharing. The Group has third-party support services with
an approved NCSC Incident Responder (IR) specialist capabilities, including forensic, containment
and recovery.
• Education and awareness are promoted across all colleague levels: baseline cyber awareness
training is in place, which is further enhanced with regular phishing simulations, awareness
campaigns and the work of information security champions.
The Group continually tests its security posture via CREST-approved Penetration Testers and takes steps
to remediate any vulnerabilities or weaknesses identified. Changes to technology solutions require
Information Security review and approval.
Impact: Operational disruption; adverse effect on reputation; potential legal action, fines and penalties
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Health, safety & wellbeing
Inherent risk:
Medium
Relevance:
Industry-wide
Risk
Trend:
Description
Keeping people safe and well is clearly aligned to the Group’s purpose. The Group expects everyone to
go home safe and well, every single day.
The Group operates a large estate, with many sites running complex and busy yards. The Group also
operates one of the largest vehicle and mechanical handling equipment fleets in the UK, distributing
heavy and bulky materials. Certain products that are sold pose health and safety risks. Poorly
implemented safety practices on site, on the road and at delivery locations could result in significant
harm to colleagues, customers and the wider community.
Full ownership of Staircraft adds a further element to the Group’s safety risk profile, with this business
carrying an inherent risk (and greater likelihood) of harm from the manufacturing process, in a sector
with different requirements and greater regulatory scrutiny.
Mitigation
Health, safety and wellbeing are fundamental to the Group’s values. The Group continues to challenge
current ways of thinking to de-risk its operations and improve safety performance. An open reporting
culture is fostered, with colleagues encouraged to “Call It Out” if they see anything that they consider to be
unsafe. Monthly communication to colleagues highlight examples of successfully “calling it out” or where
there are lessons to be learned.
Safety governance is well established and designed to promote continual focus and improvement. A
process of reviewing the Group Safety strategy has commenced, with a view to identifying further
opportunities to drive compliance and performance against existing controls. Safety performance is
reviewed at every level of the business, including at all Board meetings and by the dedicated Safety
Committee, which is chaired by a Non-executive Director. The process of assessing safety compliance
and performance at sites across the Group has been reviewed during 2024 and will be rolled out in 2025
to maintain focus on key risks and drive consistency in management reporting.
Staircraft has now embedded the Group’s Safety Management System and is supported by dedicated
safety support along with a new business leadership team.
The Mental Health First Aider community continues to support colleagues and the Group maintains
a suite of resources in the online StayWell hub during the year.
Further information on progress made during the year can be found in the Safety and Wellbeing report
on page 40.
Impact: Harm to colleagues, customers or the public; potential legal action, fines and penalties; adverse effect on reputation
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STATEMENT OF PRINCIPAL RISKS AND UNCERTAINTIES CONTINUED
Legal compliance
Inherent risk:
Medium
Relevance:
Industry-wide
Risk
Trend:
Description
The Group is subject to a broad range of existing and evolving governance requirements, environmental,
health and safety and other laws, regulations, standards and best practices which affect the way that it
operates and gives rise to significant compliance costs, potential legal liability exposure for non-
compliance and potential limitations on the development of the Group’s operations and strategy, if not
managed correctly. The scope of these requirements is in keeping with an organisation of our scale and
operational model.
The ongoing global development of ESG reporting regimes, the continuing implementation of the Building
Safety Act 2022, as well as responding to UK corporate governance reforms all require the Group to
assess current processes, controls and related assurance. New requirements may also be placed on the
Group as it develops new value-add services in response to the evolving needs of our customers.
Should the Group fail to deliver against its legal and regulatory obligations, as well as broader
responsibility commitments, this could significantly undermine the Group’s reputation, result in the
imposition of fines or other enforcement action, and adversely impact operations and results.
Mitigation
The Group maintains a number of teams of subject matter experts with responsibility for supporting
delivery against legal and regulatory obligations that affect the business. Internal subject matter expertise
is augmented by external advisors. The GLT and the Board regularly monitor compliance with laws
and regulations.
A Code of Conduct, supported by minimum standards, all-colleague mandatory training and
comprehensive framework of detailed policies, sets out the requirements for all colleagues to do business
in the right way with adherence periodically monitored by the GLT.
The Group encourages colleagues to speak up whenever they see or suspect activity that contravenes the
values, Code of Conduct or policies. All cases reported through the independent hotline are investigated.
The Group shares a Supplier Manual and Supplier Commitments to articulate its expectations of the
supply base and higher risk suppliers are assessed against these requirements through onsite audits or
an Online Risk Assessment. As construction is exposed to more modern slavery than many other
industries, the Group is a member of the Supply Chain Sustainability School’s Modern Slavery Group, and
contributed to the development of the School’s new Operational Toolkit; “Combatting Slavery in the Built
Environment” to support businesses with their modern slavery due diligence.
The Group has mapped out the ESG reporting changes ahead and is readying the data and information
required to meet these in the timescales indicated. Further information on the Group’s climate disclosures
in line with TCFD guidelines can be found on pages 43 to 58.
Progress continues in the product provenance strategic workstream to track product data from source
through the supply chain to a customer’s project.
The Group has begun a scoping and materiality assessment as part of its preparation for the first internal
controls declaration required by UK Corporate Reform requirements, and regular updates will be provided
to the GLT and Audit Committee throughout the year, ahead of the reporting deadline.
Impact: Adverse effect on reputation, financial and/or operational performance; potential legal action, fines and penalties; diversion of management attention
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Critical asset failure
Inherent risk:
Medium
Relevance:
Company specific
Risk
Trend:
Description
Disruption of a critical Group asset, whether a primary Group distribution location, or a key system failure
or outage, could significantly interrupt operations. More generally, if the Group is unable to effectively
respond to global or national events, which may impact multiple sites simultaneously, this could also
significantly impact operations and performance.
Distribution centres
The Group operates a small number of distribution centres with significant stockholdings with an
increasing volume of deliveries that are shipped direct to the end customer. Whilst many categories,
particularly lightside products, are held throughout the network such that a short period of disruption
could be managed, certain categories such as kitchens would present more significant challenges over
a prolonged period of disruption. Certain distribution locations hold product, and related handling
equipment, that is not carried elsewhere in the network.
IT systems
In its day-to-day operations the Group is dependent on a wide range of IT systems and supporting
infrastructure. The Group’s current IT landscape is complex and includes some legacy systems that lack
the functionality of modern software and where expertise is diminishing. Although adequate resources
and processes are in place that keep the current IT estate well maintained and operational, and there is a
plan to replace the legacy systems over time, the older systems present an increasing risk of failures or
outages and require more effort to maintain.
Mitigation
Crisis management & business continuity planning
The Group has developed crisis response capabilities, overseen by a Group-level steering group. In the
event of an incident, tiered crisis response teams are mobilised that coordinate activity and provide
ongoing monitoring, decision support and communications.
A risk-based approach is taken to business continuity management with a focus on critical infrastructure.
This is currently being reviewed through the preparation of updated strategic business impact
assessments in each Group business. The supporting business continuity plans prepared for key sites
cover a range of scenarios. Regular prevention measures, such as fire risk assessments, are undertaken
across the estate as well as maintenance programmes, in order to reduce the risk of internally-generated
disruption.
The Group’s size and scale helps to mitigate stock issues in the event of disruption. The Group carries a
level of buffer stock in the network that would be sufficient to cover a short-term disruptive event. The
Group has the ability to leverage the lightside capability in Toolstation to support an issue in Travis
Perkins, and vice versa. Branch-level disruption would be managed by fulfilling orders from alternative
local sites and re-routing stock.
IT disaster recovery
The Group’s incident management process is designed to prioritise and respond to any incident quickly
and effectively, with escalation and communication protocols. Recovery targets are in place, designed to
minimise the operational and customer impact. The Group’s IT function is in the process of moving IT
infrastructure and systems to the AWS Cloud which will further remove physical risks and continue to
modernise the Group’s technology infrastructure, and is on target to complete the migration in 2025.
Impact: Adverse effect on performance: financial, operational, customer service; diversion of management attention
70
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NON-FINANCIAL AND SUSTAINABILITY INFORMATION STATEMENT
The information below is intended to help users of these accounts understand our position on key
non-financial and sustainability matters and has been prepared in response to the reporting requirements
contained in section 414C(7), 414CA and 414CB of the Companies Act 2006.
Reporting requirements Principal risks Policy embedding, outcomes and key performance indicators Link
Colleagues Health, safety and
wellbeing
Business model Page 11
KPIs – Accident frequency rate Page 15
Safety and wellbeing Page 40
Managing change Development Page 37
Modern slavery and human rights Page 36
Diversity and inclusion Page 38
Colleague voice and engagement Page 41
Reward Page 41
Directors’ remuneration report Page 90
Directors’ report – Employees Page 119
Environment Climate change and
carbon reduction
Business model Page 11
KPIs – Carbon emissions Page 15
Climate-related financial disclosure Page 43
Sustainability report Page 26
Carbon Page 30,
34, 58
Waste Page 34
Modernising construction Page 30
Human rights,
anti-bribery
andanti-corruption
Legal compliance Human rights and modern slavery Page 36
Supply chain resilience Legal compliance Page 36
Directors’ report – Modern slavery Page 119
Social and
community
Managing change Business model Page 11
Charity and community Page 42
Responsible sourcing Page 32
A description of the Group’s business model and how it creates sustainable value can be found on pages 14
to 15. Most of the reporting on these topics and KPIs is contained in the Strategic report under the sections
Business model, Sustainability report and Statement of principal risks and uncertainties or are incorporated
into the Strategic report by reference from the pages noted. The Group has appropriate policies and
diligence procedures regarding all the non-financial information presented in this Annual Report.
Section 172 statement
Working together with our stakeholders towards shared goals is part of how we deliver long-term sustainable
success. Go to page 94 to see more.
The Strategic report on pages 2 to 70 was approved by the Board of Directors and signed on its behalf by:
Geoff Drabble Duncan Cooper
Chair Chief Financial Officer
31 March 2025 31 March 2025
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GOVERNANCE
Contents
72 Board of Directors
74 Corporate governance report
78 Section 172 statement
81 Nominations Committee report
84 Audit Committee report
90 Directors’ remuneration report
118 Directors’ report
121 Directors’ statement of responsibilities
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Travis Perkins plc Annual Report and Accounts 2024
BOARD OF DIRECTORS
Committee
membership key:
A
Audit
N
Nominations
R
Remuneration
S
Stay Safe
Chair
Geoff Drabble
Chair
Date of appointment to the Board
October 2024
Committee memberships: None
Experience
Geoff has unrivalled leadership experience
from publicly listed businesses across the
building materials distribution, equipment hire
and tools markets nationally and internationally.
He has gained this from both executive and
non-executive roles, and is currently
Non-executive Chair of multinational
plumbing and heating products distributor,
Ferguson Enterprises Inc. He previously
served as Non-executive Chair of DS Smith
plc, Senior Independent Director of Howden
Joinery Group plc and was CEO of Ashtead
Group plc during a period of unprecedented
growth. He has also been Executive Director
of The Laird Group plc and held a number of
senior positions at Black & Decker.
External appointments
• Ferguson Enterprises Inc (Chair)
Jez Maiden
Senior Independent
Non-executive Director
Date of appointment to the Board
June 2023
Committee memberships:
A N
Experience
A qualified accountant (FCMA), Jez is a proven
Senior Independent Director with diverse sector
experience spanning household FMCG,
management consultancy, food manufacturing,
transport and chemicals. He has extensive
finance and audit, public company and capital
markets expertise and has held a number of
Executive Director CFO positions, latterly as
Group Finance Director for Croda International
Plc. He has previously served as a Non-executive
Director at PZ Cussons plc and Synthomer plc
and is currently a Non-executive Director and
member of the Audit Committee at Intertek
Group plc, and has recently been appointed
as a Non-executive Director, Chair of the Audit
Committee and a member of the Remuneration
Committee of Smith & Nephew plc.
External appointments
• Centre for Process Innovation Ltd
(Non-executive Director)
• Smith & Nephew plc (Non-executive Director)
• Intertek Group plc (Non-executive Director)
Marianne Culver
Non-executive Director
Date of appointment to the Board
November 2019
Committee memberships:
R S
Experience
Marianne has extensive executive and board
experience in the global distribution and
logistics sectors. She has served as Chief,
Global Supply Chain with Premier Farnell plc
and as Chief Executive (UK & Ireland) of TNT.
Marianne was latterly Global President of RS
Components, (formally Electrocomponents
plc).
Her non-executive career to-date has
included membership of the boards of Rexel
SA (listed on Euronext Paris), The British
Quality Foundation and EDS Corporation and
she is a current member of the Supervisory
Board of BME B.V.
External appointments
• BME B.V (Supervisory Board)
Duncan Cooper
Chief Financial Officer
Date of appointment to the Board
January 2024
Committee memberships: None
Experience
Duncan is a Chartered Accountant and, in
addition to having a strong finance
background, has experience in corporate
communications, strategy design and
implementation and large-scale technology
change. Duncan joined the Group from Crest
Nicholson plc, where he was appointed Chief
Financial Officer in 2019.
He formerly worked at J. Sainsbury plc where
he held multiple roles since 2010, culminating
in Director of Group Finance. Prior to that
Duncan held finance roles at BSkyB plc and
GlaxoSmithKline plc after qualifying at
Deloitte LLP.
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Louise Hardy
Non-executive Director
Date of appointment to the Board
January 2023
Committee memberships:
R
N
Experience
Louise brings to the Board over 30 years
of business and significant leadership
experience from across the construction
and infrastructure industry.
A civil engineer by background, Louise has
held a range of senior roles at London
Underground, Bechtel and Laing O’Rourke,
where she was the Infrastructure Director for
the London 2012 Olympic Park. Her most
recent executive appointment was European
Project Excellence Director for AECOM.
Louise remains a keen volunteer within the
construction industry as a STEM ambassador
and diversity champion.
External appointments
• Crest Nicholson Holdings plc
(Non-executive Director)
• Balfour Beatty plc (Non-executive Director)
• Oriel (Chair)
Jora Gill
Non-executive Director
Date of appointment to the Board
August 2021
Committee memberships:
N S
A
Experience
Jora has extensive data and digital experience
having held a number of Chief Information
Technology Officer and Chief Digital Officer
roles in significant organisations, including
Standard and Poors, Elsevier, The Economist,
and latterly SHL Group Ltd where he served
as Chief Digital Officer until December 2021.
Jora is now the CEO and co-founder of an
AI company, Insights Driven. In addition, he
serves as a Non-executive Director of the
Phoenix Life Limited, a role he has held since
June 2023.
External appointments
• Insights Driven (CEO)
• Phoenix Life Ltd (Non-executive Director)
Heath Drewett
Non-executive Director
Date of appointment to the Board
May 2021
Committee memberships:
A
R
Experience
Heath is an experienced CFO and currently
Chief Financial Officer for Aggreko; a global
power, temperature control and energy
services company and constituent of the FTSE
250, prior to its takeover in August 2021.
He also has extensive experience in the
engineering, leisure and transportation and
industrial sectors having previously worked for
WS Atkins, British Airways, Morgan Advanced
Materials and PwC. Heath brings a wealth of
financial and commercial acumen to the Board
at Travis Perkins based on his experience
across a number of markets and sectors
adjacent to the construction industry.
External appointments
• Aggreko (Chief Financial Officer)
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CORPORATE GOVERNANCE REPORT
UK Corporate Governance Code
Throughout the year ended 31 December 2024, the
Company was in compliance with the principles and
provisions of the UK Corporate Governance Code
2018 issued by the Financial Reporting Council (“the
Code”) and which is available at www.frc.org.uk,
subject to the following explanations.
Further explanation in relation to Provision 24 of
the Code and regarding the role of Jez Maiden as
both the Interim Chair and as a member of the
Company’s Audit Committee is provided in the
Audit Committee report on pages 84 to 89.
It is a requirement under Provision 12 of the Code
that one of the independent non-executive directors
of a company be the Senior Independent Director
(“SID”). The responsibilities of the Company’s SID
are described under the “Division of responsibilities
and meetings” heading below. Jez Maiden was the
Company’s SID during 2024. When Jez became
Interim Chair with effect from 31 May 2024 it was
decided that engagement between the Non-
executive Directors and by the Company with its
shareholders would not be adversely affected by
this temporary arrangement, especially given the
Board’s focus on confirming the plan for permanent
Chair succession, which it was anticipated would be
fully resolved within a reasonable period. There was,
therefore, no appointment of an alternative SID. As
such, Jez Maiden was the only Director nominated
as SID during 2024, including during the period
when he was also Interim Chair.
Under Provision 4 of the Code, when 20% or
more of votes have been cast against the Board
recommendation for a resolution, the Company
should explain, when announcing voting results,
what actions it intends to take to consult
shareholders in order to understand the reasons
behind the result. An update on the views received
from shareholders and actions taken should
be published no later than six months after the
shareholder meeting. The shareholder consultation
by the Company described in further detail under
the “Annual General Meeting” heading below was
conducted substantively within six months of the
2024 AGM; however, the update on views and
actions was published on 18 November 2024 which
was six months and 27 days after the AGM.
Role of the Board
The Board is responsible for considering the
opportunities and risks relevant to the success of the
Group and for setting the tone and approach
to corporate governance.
The Board has a schedule of matters reserved
to it, which was last reviewed and approved in
December 2024. The latest approved schedule of
matters reserved can be found on the Company’s
website. In line with the Code, the Board has a
number of Committees to which it delegates certain
responsibilities: Audit, Nominations, Remuneration
and Stay Safe. Aligned with the Code the Audit,
Nominations, and Remuneration Committees all have
three independent Non-executive members. The
Committees all have defined terms of reference that
are available on the Company’s website.
Culture
The Board makes use of a range of insights to
assist in its understanding of the Group’s culture.
This enables the Board to monitor the alignment of
practices and behaviour with Group policy, strategy
and values. Sources of insight include:
• Feedback received informally through visits by
members of the Board to branches and other sites
across the Group.
• Responses to the Group-wide colleague
engagement survey (“Your Voice, Our Future”).
• Feedback from colleague listening sessions held
by members of the Board.
• Review of issues raised through the Group’s Speak
Up line.
These insights are useful to the Board in its
assessment of the extent to which prevailing culture
in the Group is aligned to the Group’s policy, strategy
and values.
Engaging with stakeholders and the workforce
Engagement with stakeholder groups such as
shareholders, customers, suppliers and colleagues
occurs when formulating the strategic direction
of the Group. The Board takes the views of its
stakeholders into account when strategic decisions
are made. A statement on the ways in which the
Group meets its duties under s172 of the Companies
Act 2006 is described in the Section 172 statement
on pages 78 to 80. This includes detail regarding
engagement with major shareholders and the
outcomes influenced by that engagement.
The Board has designated a workforce Non-
executive Director to help bring the colleague voice
into the boardroom. This role was fulfilled by Louise
Hardy in 2024. Louise held listening sessions to
gauge engagement and colleague sentiment.
Conflicts of interest and raising concerns
Declarations of any actual or potential conflicts of
interest with items on the agenda are requested and
made at the start of every Board and Committee
meeting. A register of the Directors’ interests and
conflicts is maintained by the Company Secretariat.
Geoff Drabble
Chair
31 March 2025
In this the first Annual Report
since I was appointed Chair, I am
pleased to present the Corporate
governance report for the year
ending 31 December 2024.
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Directors complete an annual questionnaire on
potential or actual conflicts of interest and their
activities throughout the year. Any potential conflicts
are reviewed by the Board as a whole and, if
necessary, mitigating actions are taken and recorded
on the register of Directors’ interests and conflicts.
The impact of any relationships or involvements
are considered carefully to ensure that they do not
compromise or override the Directors’ ability to
exercise independent judgement.
Concerns in relation to the operation of the Board
can be raised with the Chair or the SID. As part of
the leadership evolution in 2024, the views of Board
members were sought by the SID and discussed
by the Board without the then Chair present, in
accordance with good governance practice.
During 2024, the Group continued to emphasise
the importance of “doing the right thing” aligned
to the Code of Conduct and of “speaking up”
using the Speak Up line. A number of policies and
related guidance were updated and communicated.
Communication included details of how colleagues
could whistleblow using the Speak Up service
where they believed that others may not be doing
the right thing. The Speak Up service is available
for colleagues and others to raise concerns by
telephone call or web portal submission regarding
issues that are inconsistent with its Group’s values
or otherwise require investigation and attention. The
Audit Committee, on behalf of the Board, received
regular reports during 2024 regarding issues raised
through the Speak Up line and subsequent action
taken. The Board also reviewed the effectiveness of
the Speak Up line at its meeting in December 2024.
Board composition and effectiveness
Board changes
Appointments of new Directors are made by the
Board on the recommendation of the Nominations
Committee.
There were a number of changes to the Directors
during 2024. Duncan Cooper took up the position of
CFO on the Board on 9 January, with Alan Williams
stepping down from the Board on 23 January.
Jasmine Whitbread stepped down as Chair from
the Board on 31 May and at that point Jez Maiden
became Interim Chair. Nick Roberts stepped down
from the Board and Pete Redfern took up the post of
CEO with effect from 16 September and regrettably
resigned due to ill health on 10 March 2025. I joined
the Board on 1 October. As at 31 December 2024, the
Board comprised six Non-executive Directors and two
Executive Directors. The biographies of the Board as
at the date of the Annual Report and Accounts are
listed on pages 72 to 73.
Re-election of Directors
All Directors as at the date of the Annual Report and
Accounts are considered to be eligible, on the basis
of their performance and contribution to the long-
term sustainable success of the Company, to submit
themselves for re-election at the 2025 Annual
General Meeting.
Board effectiveness review
Consistent with the requirements of the Code,
evaluation of the performance of the Board and its
Committees was carried out in 2024 as described
in the Nominations Committee report on pages 81
to 83.
Division of responsibilities and meetings
Chair and CEO
The roles of the Chair and CEO are split and the
Board has approved a written statement of the
division of key responsibilities between the Chair
and CEO which was reviewed in December 2024
and is available on the Company’s website. The
Chair leads the Board and ensures its effectiveness.
Jasmine Whitbread and Jez Maiden were
independent on appointment as Chair/Interim Chair
and remained so for as long as they held that post. I
was independent on appointment as Chair.
Non-executive Directors
The Board ensures that at least half of its members,
excluding the Chair, are independent Non-executives
and reviews any relationships or circumstances which
are likely to affect their independence. Provision 10
of the Code sets out circumstances which are likely
to impair, or could appear to impair, a Non-executive
Director’s independence, including where individuals
hold cross-directorships or have significant links
with other Directors through involvement in other
companies or bodies. The Board is satisfied that there
were no relevant cross-directorships or other links in
2024 and that none of the circumstances set out in
provision 10 of the Code currently applies. The Board
is satisfied, therefore, that all Non-executive Directors
remain independent.
The Non-executive Directors provide constructive
challenge, strategic guidance and appraise
Executive Directors’ performance against agreed
performance targets, including through the work of
the Remuneration Committee. The Non-executive
Directors and Chair meet regularly without the
Executive Directors present.
A Non-executive Director is appointed as the SID.
The SID acts as a sounding board for the Chair and
an intermediary for Directors and shareholders. The
SID is available to shareholders should they wish to
raise an issue through an alternative channel. The
Non-executive Directors led by the SID meet without
the Chair present annually to discuss the Chair’s
performance and any other matters as required. The
details of the responsibilities of the SID are set out in
writing and are available on the Company’s website.
Jez Maiden is the Company’s SID and fulfilled the
foregoing responsibilities during 2024, while also
serving for part of this period as Interim Chair.
Time commitment
When making new appointments, the Board
considers the competing demands on candidates’
time. Prior to appointment, candidates are required
to disclose any significant commitments along with
the estimated associated time commitment. Each
Non-executive Director’s letter of appointment
sets out the time commitment expected of them
and these letters are available for inspection at the
Annual General Meeting. So far as is practicable, the
Company liaises with the Non-executive Directors to
ensure the schedule of meetings does not clash with
external appointments. Directors are able to attend
meetings by video or telephone conferencing if there
is an issue with location or travel.
The Board considers, on an annual basis, the time
commitments of each Director and it is satisfied
that all Directors continue to have sufficient time
available to fulfil their duties. Any new external
appointments during the year are given careful
consideration and (if necessary) before consent is
given, taking into account the number and scale of
each Director’s other commitments.
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CORPORATE GOVERNANCE REPORT CONTINUED
Subject to approval by the Board, Executive
Directors are allowed to accept one external non-
executive directorship with a listed entity.
Board and Committee meetings
The Board held nine meetings in 2024, dealing
with the annual cycle of activity planned in advance
of the year and other matters arising during its
course. The format for meetings of the Board in
2024 was a mix of in person and virtual using video
conferencing. Regular items on the agenda for
consideration included:
• Detailed updates on financial results and
performance against related KPIs, in particular
delivery of the Group’s business improvement
priorities.
• Health and safety policies and performance.
• Strategic reviews of the Group as a whole and its
businesses.
• Governance matters, including review of the work
of the Committees to the Board and the conduct of
matters reserved to the Board.
• New appointments.
Examples of other areas of particular focus in
certain meetings include:
• Review of the outturn trading performance of
Group in 2023 and the response of the Group to
the trading conditions prevailing in 2024.
• Colleague voice; review of key themes in the feedback
from the Your Voice our Future engagement survey.
• Investor relations; review of feedback received
from investors in the course of the year and
discussion of investor relations priorities for 2024.
• Sustainability and corporate affairs; review of
climate-related risks and opportunities, the
sustainability reporting landscape and the
roadmap for the Group’s external engagement.
• Technology and data enablement; review of the
delivery of technology enabled business change,
aligned to the objectives of the Group.
• Risk Appetite and Principal Risks; to facilitate the
calibration of Board risk appetite and including
coverage of cyber risk preparedness. Group talent
agenda; review with particular focus on talent and
succession.
• Implementation of Oracle Financials; receiving
updates ahead of and post “go live”, to monitor
and support delivery.
• Business reviews of specific trading operations
within the Group.
The Chair meets regularly with Board members
and with members of the Group Leadership Team
(“GLT”) between Board meetings and ensures that
Board members are kept informed of material
developments. At meetings the Chair encourages
debate and equal contribution from each Board
member within a transparent and constructive
atmosphere. The names of the Directors who served
on the Board during the year together with the
number of Board and Committee meetings attended
by each Director is set out in the following table.
PLC
Board
Audit
Committee
Nominations
Committee
Remuneration
Committee
Stay Safe
Committee
Overall
attendance
(%)
Number of meetings 9 4 2 3 2 98
Attendance:
D. Cooper 9/9 – – – – 100
M. Culver 9/9 – – 3/3 2/2 100
G. Drabble
1
2/2 – – – – 100
H. Drewett
2
8/9 4/4 – 3/3 – 94
J. Gill 9/9 4/4 2/2 – 2/2 100
L. Hardy
3
9/9 – 1/1 3/3 – 100
J. Maiden 9/9 4/4 2/2 – – 100
P. Redfer n
4
3/3 – – – 1/1 100
N. Roberts
5
6/6 – – – 1/1 100
J. Whitbread
6
3/3 – 1/1 2/3 1/1 88
A. Williams
7
1/1 – – – – 100
1 Geoff Drabble joined the Board on 1 October 2024.
2 Heath Drewett was absent from one Board meeting as a result of a personal emergency.
3 Louise Hardy joined the Nominations Committee on an interim basis on 30 April 2024.
4 Pete Redfern joined the Board as CEO on 16 September 2024.
5 Nick Roberts stood down from the Board on 16 September 2024.
6 Jasmine Whitbread stood down from the Nominations, Remuneration and Stay Safe Committees on 30 April 2024 and from the Board on 31 May 2024.
7 Alan Williams stood down from the Board on 23 January 2024.
Group Leadership Team
The Board has delegated responsibility for the
execution of the Group’s strategy and the day-to-
day management and operation of the Group’s
business to the CEO. The CEO leads the GLT, which
comprises key business and functional leaders.
Other colleagues are invited to attend GLT meetings
from time to time in relation to specific matters. The
main purpose of the GLT is to assist the Executive
Directors in the performance of their duties,
particularly in relation to:
• the development and implementation of strategy,
operational plans, policies, procedures and
budgets;
• the monitoring of operational and financial
performance;
• the assessment of control of risk; and
• the prioritisation and allocation of resources.
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Provision of information and support
All Directors have direct access to the General
Counsel & Company Secretary who is responsible
for advising the Board on all governance matters.
Directors may also seek independent professional
advice at the Company’s expense in the furtherance
of their duties as required.
Annual General Meeting
On 22 April 2024 the Company welcomed
shareholders, their proxies and corporate
representatives to the Annual General Meeting held
in person at the London offices of Linklaters. All
Directors were present and available for questions.
Support was received from shareholders, including
those casting votes by proxy, sufficient to pass all of
the resolutions put to the meeting, with an average
of 92% of votes in favour of each resolution. Less
than 80% support was received for two resolutions;
79.06% of votes cast were in favour of resolution 3
and 76.41% of votes cast were in favour of resolution
12. The details of those resolutions were:
• Resolution 3: To receive and approve the Directors’
remuneration policy, which is contained in the
Directors’ remuneration report as set out on
pages96-101 of the Annual Report and Accounts
for the financial year ended 31 December 2023
which will take effect from the date of its approval.
• Resolution 12: To re-elect Jasmine Whitbread as
a Director of the Company.
In line with its responsibilities under the Code (where a
resolution receives a more than 20% vote against), the
Board consulted with shareholders to understand the
reasons behind these votes. In respect of resolution 12,
the then Chair and the SID held a number of meetings
with shareholders during March and April 2024, and
Jasmine Whitbread stepped down from the Board
on 31 May 2024. Jez Maiden became Interim Chair
and led the process to appoint both a new CEO and
a permanent Chair, seeking input from shareholders
on the characteristics that they would wish to see in
the new appointments. This process was concluded in
July 2024. Regarding resolution 3, following the AGM,
Louise Hardy, Chair of the Remuneration Committee,
sought further input from shareholders, which, together
with previously articulated shareholder positions,
has enabled the Company to better understand the
rationale behind most of the voting which did not
support resolution 3. A consistent theme of a lack of
support for elements of the Company’s Restricted
Share Plan (“RSP”) in the context of underlying
performance.
Immediately following the shareholder consultation,
against the backdrop of 88.02% shareholder
support when the RSP was adopted, the Company
did not believe an immediate change to its long-
term incentives was appropriate. However, as noted
at pages 90 to 91 of the Directors’ remuneration
report, the Company continued to keep the efficacy
of its Directors’ Remuneration Policy under review;
including, in particular, whether the RSP remained
the best vehicle through which to provide long-term
incentive to the relatively new executive team and
to support the Group with the retention of executive
talent through a period of business turnaround.
The Board looks forward to welcoming shareholders,
their proxies and corporate representatives who
wish to attend the 2025 Annual General Meeting of
the Company in person. The shareholder appetite
for online broadcast of the Annual General Meeting
appears to remain low and it has been decided that
there will be no broadcast of the Annual General
Meeting this year in order to use shareholders funds
appropriately by avoiding unnecessary expenditure.
Shareholder demand for remote participation will be
kept under review and will inform the approach to
arrangements for future Annual General Meetings.
Statement by the Board
A review of the performance of the Group’s
businesses and the financial position of the Group
is included in the Strategic report on pages 8 to
25. The Board uses it to present a full assessment
of the Group’s position and prospects, its business
model and its strategy for delivering that model.
The Directors’ statement of responsibilities for the
financial statements are described on page 121.
Going concern
After reviewing the Group’s forecasts and risk
assessments and making other enquiries, the Board
has formed the judgement at the time of approving
the financial statements that there is a reasonable
expectation that the Company has adequate
resources to continue in operational existence for
the 12 months from the date of signing this Annual
Report and Accounts. For this reason the Board
continues to adopt the going concern basis in
preparing the financial statements.
In arriving at their opinion the Directors considered:
• The Group’s cash flow forecasts and revenue
projections.
• The impact on trading performance of severe but
plausible downside scenarios. Key assumptions
include significant reductions in revenue removal
of property profits and limited reductions in fixed
overheads, as well as mitigating actions such as
delayed capital expenditure and dividend
suspension.
• The committed debt facilities available to the
Group and the covenants thereon.
• The Group’s debt maturity profile and investment
credit ratings.
• The Group’s robust policy on liquidity and cash
flow management.
• The Group’s ability to successfully manage the
principal risks and uncertainties outlined on pages
59-69 during periods of uncertain economic
outlook and challenging macroeconomic conditions.
The downside scenarios tested, outlining the impact
of severe but plausible adverse scenarios based on
a severe recession and housing market weakness,
show that there is sufficient headroom for liquidity
and covenant compliance purposes for at least the
next 12 months from the date of approval of these
financial statements.
The Board’s fair, balanced and
understandable declaration
At the Board meeting during which the Group’s
results for the year were presented, the Board
considered whether the Annual Report and
Accounts, when taken as a whole, present a fair,
balanced and understandable overview of the
Group and its performance. After hearing from the
CFO, receiving a report from the Audit Committee
Chair on that Committee’s meeting to review the
preparation and content of the year-end financial
statements and the audit conducted upon them,
and reviewing the content of the Annual Report
and Accounts, the Board concluded that the
Annual Report and Accounts are fair, balanced
and understandable and accordingly the Directors’
declaration to that effect can be found under the
Directors’ statement of responsibilities on page 121.
Effectiveness of the system of internal control
and risk management
In conjunction with the Audit Committee and in a
process that accords with the Financial Reporting
Council guidance on Risk Management, Internal
Control and Related Financial and Business
Reporting, the Board has carried out an annual review
of the overall effectiveness of the system of internal
control and risk management during the year and
up to the date of approval of the Annual Report and
Accounts, and concluded that these systems are
effective. A further description of this work is set out
in the Audit Committee report on page 87.
Geoff Drabble
Chair
31 March 2025
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SECTION 172 STATEMENT
The Group has taken into consideration the interests of key stakeholders and the success of
the Company for the benefit of its members as a whole, in line with Section 172(1) (a) to (f) of
the Companies Act 2006 (“s172”). This s172 statement explains how:
• the Directors have taken into consideration the interests of members as a whole in key decision-making; and
• the Group, including the Directors, has engaged with stakeholders.
s172 requires Directors to have regard (amongst other matters) to:
a. The likely consequences of any decision in the long-term;
b. The interests of the Company’s employees;
c. The need to foster the Company’s business relationships with suppliers, customers and others;
d. The impact of the Company’s operations on the community and the environment;
e. The desirability of the Company maintaining a reputation for high standards of business conduct; and
f. The need to act fairly as between members of the Company.
For example and as set out below, the Board had particular regard to the requirements of s172 (amongst
the other requirements of s172 and other matters more generally) in connection with the decision to close
Toolstation France.
Key Board decision Key requirements
Closure of Toolstation France – The Board reviewed and ultimately approved the closure of Toolstation
France.
The Board first approved an internal engagement with the Works Council and colleagues, the results of
which informed the decision to communicate externally in March 2024 the strategic plan to review
options for Toolstation France.
Engagement with, and support for, colleagues, suppliers and other stakeholders impacted by the
potential change was maintained throughout the review process, the outcome of which was reported
regularly to the Board. In response to the review the Board confirmed the decision to close Toolstation
France, to include the sale of stores as a going concern where this would be feasible and not detrimental
to the interests of the Company’s shareholders.
Eight Toolstation France stores were sold as a going concern as part of the subsequent closure process,
securing jobs for 10% of the colleagues impacted.
The operation closed by the end of 2024 and is presented as a discontinued operation.
Likely consequences of decision in the long term
The Board based its decision on a consideration of the likely long-term consequences of either extending into the longer
term the Group’s investment in the Toolstation France business or ending its investment in 2024.
Interests of colleagues
The Board had regard to the impact of decisions on colleagues, informed by its understanding of the local consultation process
described in the preceding column.
Need to foster business relationships
In a similar way to which it had regard for the impact on colleagues, the Board had awareness of how the closure would affect
relationships with local suppliers and customers.
Impact of operations on the community and the environment
The Board’s regard to the impact of the closure of operations and resulting redundancies on colleagues included consideration of
the positive feedback from the Works Council on the suitability of the post-redundancy support package for ex-colleagues. By
reason of this, the Board’s regard included the impact on people post-closure as members of the community.
Desirability of maintaining a reputation for high standards of business conduct
The Board assured that the process connected with the review and decision to close was conducted in compliance with local
legislation throughout the process.
Need to act fairly as between members of the Company
The best interests of the Company’s shareholders, and by implication the need to act fairly as between them, were key to the
Board’s decision making regarding the closure of Toolstation France.
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Relevant issues, factors and stakeholders
The Group’s Strategy and ESG framework take into account key macro factors and challenges (pages 60 and 61), growth drivers (page 10) and double materiality assessment results (page 27), and have been formed through
expert teams and in-depth consultation with key stakeholder groups.
Stakeholder engagement and key issues
Building positive stakeholder relationships through engagement, collaboration and dialogue is important to the Group. Working together with its stakeholders towards shared goals assists the Group in delivering long-term
sustainable success. The Group comprises a number of businesses and stakeholder engagement takes place both at a Group level and also within each business as each has its own unique stakeholders. Details of key
stakeholders and how the Group engages with them are set out below.
Stakeholder type How the Group engages with them Key ESG issues
Shareholders The Group relies on the support of shareholders and places importance on their opinions. The Group wants to enable shareholders to have an in-depth understanding of strategy
and operational and financial performance, so they can accurately assess the value of their shares in the Company. The Group has an open dialogue with shareholders through
one-to-one meetings, group meetings, and the Annual General Meeting. Discussions with shareholders cover a wide range of topics including financial performance, strategy,
outlook, governance and ethical practices. Shareholder feedback along with details of movements in the shareholder base are reported to and discussed by the Board and their
views are considered as part of decision-making.
The Group’s Chair and management team undertook 163 investor interactions during 2024, including attendance at nine investment bank conferences and organising two North
American roadshows. The management team recognises the benefits of virtual meetings with regard to efficiency and reaching a wide investor base but remains focused on
in-person meetings as it is their belief that this facilitates better quality conversation and helps to build long-term relationships with shareholders. In 2024, over two-thirds of all
investor interactions were in-person, this figure rising to over 80% with UK-based investors.
Carbon
Supply chain
Governance
Customers The success of the Group, both historically and into the future is dependent on the ability to understand and meet the needs of customers. The Group continues to invest in data
capability to bring a greater level of understanding to the behaviour of customers and when combined with the time spent discussing their needs and perceptions this produces a
significant amount of insight which is used to guide action. Taking a long-term view of customer needs has allowed different business units to begin to develop and deploy a range
of services which are designed to go above and beyond the traditional model of the straight supply of materials. By looking forward and seeking to understand the potential range
of impacts which may affect the business of our customers in the future we are able to assist in the development of solutions to bring mutual value, enabling, for example,
customers to work with changing environmental planning legislation to construct houses that meet current and future standards. Many of these examples are shared under
“Modernising construction” on pages 30-31. The Group’s businesses ran customer surveys and the ESG team engaged with over 120 customers in 2024.
Carbon
Sustainable products
Responsible sourcing
Social value
Packaging
Colleagues People are key to the Group’s success and it is important that they are successful individually and as a team. The Group aims to build a fully inclusive environment where treating
each other with respect and encouraging everyone to be themselves is at the heart of the Group’s values. The Group works hard to engage with and listen to colleagues in a
variety of ways. A Group-wide engagement survey in 2024 was sent to 16,000 colleagues with a participation rate of 80%, representing the views of almost 13,000 colleagues.
The engagement survey included detailed questions around safety, belonging, equal opportunity, customer focus and corporate citizenship. Group diversity and inclusion networks
with GLT sponsorship and the Diversity and Inclusion Advisory Board continued to drive the Group’s agenda to retain a diverse pipeline of colleagues, enable a high-performance
culture, develop inclusive leaders and positively impact a generation of young people.
ESG training sessions were delivered across a number of teams at Group and within the businesses by the Group Sustainability team and an ESG module is included in all apprenticeships.
The role of the designated workforce Non-executive Director is to help bring the colleague voice into the boardroom. This role was fulfilled by Louise Hardy in 2024. Louise held
listening sessions to gauge engagement and colleague sentiment.
Safety and Wellbeing
Reward
Skills
Diversity, Equity and Inclusion
Carbon
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Travis Perkins plc Annual Report and Accounts 2024
SECTION 172 CONTINUED
Stakeholder type How the Group engages with them Key ESG issues
Suppliers The Group’s suppliers are experts in the wide range of products sourced from them. Macro factors such as the increasing relevance of ESG and sector-specific changes seen in
the development of modern methods of construction are raising expectations from customers and creating opportunities. The Group aims to build strong supplier relationships
and develop mutually beneficial, lasting partnerships that meet these expectations and seize these opportunities. Engagement with suppliers is primarily through a series of
interactions and formal reviews. In 2024, the businesses engaged proactively with suppliers in connection with the launch of Oracle Financials to enhance product data and to
work together to manage and overcome challenges. The Group’s businesses also host conferences to bring suppliers and customers together to discuss shared goals and build
relationships. 60 suppliers were supported by the Group sustainability team during 2024. The Board recognises that relationships with suppliers are important to the Group’s
long-term success and is briefed on supplier feedback and issues on a regular basis.
Carbon
Responsible sourcing (including QA)
Sustainable products
Packaging
Safety
Modern slavery
Communities and
the environment
Investing in sustainable growth means supporting the communities in which the Group operates. By ensuring a positive contribution, the Group can help its communities and
strengthen the business. Colleagues engage with the communities the Group operates in, building trust and understanding local issues. Key areas of focus include how the Group
can support local causes and issues; create opportunities to recruit and develop local people; and help to look after the environment. In 2024, work continued towards the
long-term target for people development for 10,000 people to successfully complete apprenticeships by 2030 (delivered both for the Group’s own colleagues and those in the
wider industry). The Group’s businesses partner with local charities and organisations at a local level to raise awareness and funds. The Group’s impact on the environment is a
key focus for the Board. During 2024, progress was made towards the Group’s targets for buildings and fleet (Scope 1 and 2) and for the supply chain (Scope 3). Further
information is available in the Sustainability report on pages 26 to 58.
Carbon
Sustainable products
Safety
Quality
Skills
Responsible sourcing
Government and
regulations
The regulatory environment significantly impacts the success of the business. The Group believes it is important that those who can influence policy, law and regulation
understand its views, sharing information and perspectives on areas that impact the Group’s businesses. Engagement with the government and regulators takes place through a
range of industry consultations, forums, meetings and conferences to communicate views to policy-makers relevant to the Group’s sectors and businesses. Key areas of focus
during 2024 were around a national retrofit strategy, Future Homes Standard, decarbonisation of specialist fleets, the skills gap and health and safety. The Board is updated on
legal and regulatory developments and takes these into account when considering future actions.
Fleet decarbonisation
Retrofit
Future Homes Standard
Skills
Governance
Trade and
professional
bodies
The Group collaborates with trade and professional bodies to raise awareness, share best practices and to move forward together as an industry on shared opportunities, issues
and challenges. For example, the Group sits on the Builders Merchant Federation Board and each of its industry working groups. The Group is a CO
2
nstructZero Business
Champion, the Construction Leadership Council’s framework for net zero in the construction industry. The Group is represented in the National Retrofit Hub, Future Homes Hub,
Logistics UK, Builders Merchant Federation, Supply Chain Sustainability School and other forums relevant to the Group’s material risks and opportunities.
The Group is a founding member of The Construction Inclusion Coalition, which has been established to raise sector standards on equity, diversity and inclusion.
Net Zero new build and retrofit
Skills
Safety
Diversity, Equity and Inclusion.
Delegated decision-making
The Group’s governance framework delegates authority for local decision-making to each of its businesses, up to defined levels of cost and impact, which allows the businesses to take account of the needs of their own
stakeholders in their decision-making. The leadership teams of each business make decisions with a long-term view and with the highest standards of conduct in line with Group policies. In order to fulfil their duties, the directors
of each business and of the Group itself take care to have regard to the likely consequences on all stakeholders of the decisions and actions which they take. Where possible, decisions are carefully discussed with affected
groups and are therefore fully understood and supported when taken.
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Travis Perkins plc Annual Report and Accounts 2024
NOMINATIONS COMMITTEE REPORT
Dear shareholder
In April 2024 the Board asked me, as Senior
Independent Director, to step into the role of
Interim Chair of Travis Perkins plc, following
Jasmine Whitbread’s decision to step down.
As a result, I have also led the Nominations
Committee of the Board and am pleased to
present to you the Committee’s report on its
activities during 2024.
A key role of the Committee is to ensure that there is
a rigorous and transparent process for appointments
to the Board. In 2024, the Committee was asked
by the Board to recommend a new CEO to lead
the management of the Group and to identify
a new permanent Chair. To run both processes
simultaneously to deliver an effective outcome was
a demanding brief for the Committee. I would like to
take this opportunity to thank my fellow Committee
members, Louise Hardy and Jora Gill, for their
unstinting commitment and support throughout this
vital process, together with the support of the rest of
the Board in enabling the timely appointment of the
selected candidates.
Following a difficult year in 2023 in which earnings
were notably lower, the Board recognised the under
performance of the business and that it was the right
time to search for a new CEO to replace Nick Roberts
and take the business forward. The Committee
began an externally facilitated search process to
identify a new CEO, with a focus on operational
strength, margin management and cash generation
from a candidate with proven success in delivering
shareholder returns. We reviewed an extensive range
of candidates, interviewed many and selected Pete
Redfern who joined the business in September, but
who unfortunately had to stand down in March 2025
due to ill health.
As noted in the Governance Report, Jasmine
stepped down from the Board and as Chair on
31 May 2024. Reflecting input from a number of
shareholders, the Committee launched a further
externally facilitated search process to identify a new
permanent Chair. This process ran in parallel with the
CEO search, allowing the Committee to assess the
complementary skills of candidates for the two roles
and enabling the preferred candidates for these two
key roles to meet and explore their future relationship
prior to appointment. The result of the Chair search
was announced alongside the CEO appointment
in July, with Geoff Drabble appointed as a Non-
executive Director and Chair Designate from October.
Geoff took over from me as Chair on 1 February
2025, following a period of onboarding, and he will
also assume the role of Chair of the Nominations
Committee from me following publication of this
report.
Geoff was CEO of the international plant hire
company Ashtead plc for 13 years, a Non-executive
Director of Howden Joinery Group plc for eight years
and is the current Chair of Ferguson plc, the buildings
materials distribution business listed on the New York
and London Stock Exchanges, and which primarily
operates in North America. Geoff’s experience
of public companies operating in our markets is
unrivalled.
During 2024, we also completed the appointment
of a third key role, with Duncan Cooper taking over
in January as the Group’s Chief Financial Officer,
following Alan Williams’ decision to retire, as set out
in last year’s Committee report. The Committee is
pleased that Duncan has hit the ground running, with
a smooth transition from one CFO to another.
Process for Board appointments
These recent Board appointments followed the
Committee’s previously defined approach. This sets
out a rigorous selection process, with appointments
made on merit and against an agreed set of specific
and objective criteria. The Committee oversees this
process on behalf of the Board and advises the Board
on the identification, assessment and selection of
candidates. The appointment process includes:
1. Agreeing the key skills, attributes and business
experience required for the role as well as
diversity priorities.
2. Preparing a role description.
3. Engaging independent search consultants.
4. Conducting a market search via the search
consultants.
5. Preparing a “long list” of candidates, taking
into account diversity considerations and
the Committee’s review of the composition,
experience and skill-sets of the Board.
6. Selecting a shortlist which meets the
Committee’s criteria.
7. Candidate interviews and assessments.
8. Making a recommendation to the Board, following
detailed references.
9. Appointees are provided with a programme of
induction meetings and visits with key personnel
to each business within the Group.
During the year, the Committee used the services of
Russell Reynolds. Other than the use of their services
in search assignments and advising on succession
planning, the Directors have no connection with
Russell Reynolds.
Jez Maiden
Chair, Nominations Committee
31 March 2025
2024 focus area
• Delivering effective change at Board level
• Chair and CEO appointments
Number of meetings during 2024
2
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NOMINATIONS COMMITTEE REPORT CONTINUED
Committee membership
With the change in Chair role announced in April
2024, Louise Hardy was appointed to the Nominations
Committee on an interim basis to ensure that the
Committee could continue to function effectively and
to support the critical Board appointment processes.
Board diversity policy
Another key role of the Committee is to promote and
set targets for appropriate ethnic and gender diversity
at Board and senior management levels. Disclosure
Guidance and Transparency Rule (“DTR”) 7.2.8AR
requires disclosure of the diversity policy applied to
a board and its remuneration, audit and nomination
committees. It has always been the Company’s
approach to seek diversity in all senses, including
age, gender, ethnic and social backgrounds, sexual
orientation, disability and experience and to foster a
culture of inclusion. That remains our approach in all
the activities of the Board and its Committees. In light
of DTR 7.2.8AR, the Board has approved and adopted
a formal diversity policy which can be found in the
Governance section on the Company’s website.
The FTSE Women Leaders Review (“FWLR”)
recommends that boards should comprise 40%
female directors, with a female in at least one of
the roles of Chair, SID CEO or CFO, and that, by the
end of 2025, 40% of the leadership team (executive
committee or its equivalent) and its direct reports
should be female. As previously mentioned, the
Board underwent significant change in 2024, such
that, at the end of the year, two Directors out of eight
were female (25%) and, following the resignation
of Jasmine Whitbread, none of the four key Board
positions identified by the FWLR was occupied by a
female. Accordingly, the Company does not meet the
currently applicable recommendations of the FWLR.
Whilst the Board supports the aim of the FWLR
to promote greater gender diversity on boards
and amongst companies’ executive and senior
management teams, the Committee and the Board
have had to manage a dynamic set of circumstances
this year. Although the Committee included a focus
on gender balance in the searches conducted and
in the appointments which have been made during
the year, the Committee and the Board have been
guided by the overarching principle of appointing
the most suitable individuals with experience best
suited for the roles, irrespective of gender. During
2024 the Committee was necessarily focused on
Board changes. The Committee plans to review
opportunities to improve Board gender diversity
during 2025 as part of its commitment to be FWLR
compliant once Geoff Drabble has assumed the role
of Chair of the Committee and its membership has
stabilised.
Full details of the Group’s gender diversity are set out
at page 38 in the Sustainability report. The gender
split amongst the executive committee and its direct
senior management reports is 70% male and 30%
female. In order to achieve the 40% target in 2025
(and assuming typical employee turnover) we would
require the majority of the senior management hires
this coming year to be female. Given the limited
female representation in our industry, this may not
be achieved. We continue to maintain our focus on
improving gender balance in the leadership team.
The Parker Review (on ethnic diversity) has
recommended that, by 2024, FTSE 250 companies
should have at least one director who identifies
as minority ethnic. At the end of the year and at
the date of this report, the Board has met that
recommendation. In its latest report, the Parker
Review recommended that listed companies should
set targets to be met by 2027 for ethnic diversity in leadership teams (executive committees and their direct
reports) and that from December 2024 onwards, listed companies should report on their progress towards
those targets. Our current ethnic diversity amongst our leadership team is low with 96% from white ethnic
backgrounds and 4% from Asian ethnic backgrounds (excludes prefer not to say/unable to disclose/do not
know). We remain committed to improving ethnic diversity across the Group and the target we have set
ourselves to be achieved by the end of 2027 is 7% of the leadership team from minority ethnic backgrounds. In
the context of diversity within our industry, we believe that to be a realistic but stretching target.
The disclosures required to be made by Listing Rule 6.6.6R(10) are set out above. The following table is
included in compliance with Listing Rule 6.6.6R(10) in the format prescribed by that rule and set out in Listing
Rule 6 Annex 1:
Gender identity or sex (at 31 December 2024)
Area
No. of Board
members
% of the
Board
No. of senior
positions on the Board
No. in executive
management
% of executive
management
Men 6 75 4 4 66.7
Women 2 25 – 2 33.3
Not specified/prefer not to say – – – – –
Ethnic background (at 31 December 2024)
Area
No. of Board
members
% of the
Board
No. of senior
positions on the Board
No. in executive
management
% of executive
management
White British/Other White
(including Minority White
groups)
7 87.5 4 6 100
Mixed/multiple ethnic groups – – – – –
Asian/Asian British 1 12.5 – – –
Black/African/Caribbean/
Black British
– – – – –
Other ethnic groups, including
Arab
– – – – –
Not specified/prefer not to say – – – – –
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Board effectiveness review
This year’s Board effectiveness review was conducted
in-house with the process facilitated by the Company
Secretary. Using a combination of questionnaires
and discussion, the effectiveness of the Board and
its Committees was assessed. Notwithstanding the
level of change experienced during the year, the
Board and its Committees were found to be operating
effectively, with an effectiveness level of 70%, albeit
this was lower than the prior year, unsurprising given
the significant challenges faced in 2024. The Interim
Chair received feedback on his performance in his
temporary role.
In 2024, assessed against its existing skills matrix, the
Board improved its skills and capability balance, with
stronger industry, building distribution and customer
experience, secured through key appointments. In
light of the challenging market environment, together
with company-specific weakness experienced in
the second half of 2023 and into 2024, the Board
focused its time on a limited number of business
improvement initiatives, with a reduced focus on
long-term strategic initiatives. These improvement
initiatives included stabilising short-term profit
performance, particularly in the general merchant,
overhead cost reduction, improved cash generation,
addressing loss-making operations and delivering
leadership change. I would like to thank Nick Roberts
for supporting me in this work prior to his stepping
down as CEO in September 2024.
This is reflected in progress against the four focus
areas identified from the 2023 Board effectiveness
review, as follows:
Focus area Progress
Continuing focus on the balance of constructive challenge and support between the
Non-executive Directors and the Executive as relationships between Directors become
better established.
The focus on a limited number of improvement initiatives and the process to change
leadership helped the Board to better challenge and support executive management in
delivering change and beginning to stabilise performance. With the recent
appointments, the Board is establishing stronger relationships between Directors and
this will remain a focus in 2025.
Improving the feedback loop with the Board regarding actioning within the business of
issues raised by the Board.
More targeted actions and initiatives, supported by clearer KPIs, enabled the Board to
better monitor and advise on business issues. Continued work on this area is
anticipated in 2025.
Continuing to improve risk management processes, in particular, the articulation of the
Board’s risk appetite to the business.
Further improvement to an already robust risk management framework was achieved,
better linking risk appetite to the Group’s principal risks and ensuring that risk
management is pragmatic and appropriate.
Achieving an appropriate balance of focus between short-term performance
improvement and long-term strategic success.
Inevitably, 2024 saw a focus on short-term performance management and remedial
action, initially reacting to performance issues and then becoming more proactive as
work plans and progress were delivered. Under new leadership, 2025 will see a
progressive move to a more strategic approach.
2025 focus areas
Based on the 2024 Board effectiveness review and reflecting key changes in leadership, the Board has identified the following focus areas for 2025:
• CEO recruitment.
• Development of a new strategy and a focus on medium-term success.
• Rebuilding, supporting and constructively challenging the Executive in improving shorter term performance.
• Managed Board and Executive succession planning.
• Improving the identification and understanding of the key drivers of success and the KPIs to manage these.
I will be available at the AGM to answer any questions on the work of the Nominations Committee in 2024.
Jez Maiden
Chair, Nominations Committee
31 March 2025
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Travis Perkins plc Annual Report and Accounts 2024
AUDIT COMMITTEE REPORT
Dear shareholder
I am pleased to present the Audit
Committee’s report for the year ended
31 December 2024. The report sets out
the Audit Committee’s work in relation
to financial reporting, internal audit, risk
management and oversight of the external
audit process.
I will be available at the Annual General Meeting to
answer any questions about the work of the Audit
Committee.
Audit Committee membership and
attendance
The members of the Audit Committee for the year
ended 31 December 2024 have been:
• Heath Drewett
• Jora Gill
• Jez Maiden
All members are independent Non-executive Directors.
In accordance with provision 24 of the UK Corporate
Governance Code (“the Code”), at any time at least
two of the members have recent and relevant financial
experience and all members have competencies
relevant to the Company’s sector, gained through a
variety of corporate and professional appointments
(see biographies on pages 72 to 73).
It is also required under Provision 24 of the Code
that the chair of a company’s board should not
be a member of that company’s audit committee.
Jez Maiden is a member of the Company’s Audit
Committee. Jez became Interim Chair with effect
from 31 May 2024. It was decided that it would be in
the best interests of the Company for there to be no
immediate resulting change to the membership of the
Audit Committee, given the continuing value of Jez’s
experience and competency to the work of the Audit
Committee, combined with the Board’s focus on
confirming the plan for permanent Chair succession,
with it being subsequently confirmed that the role of
Chair was intended to pass to Geoff Drabble once his
capacity allowed, which it was reasonably anticipated
would resolve the issue by early 2025. As such Jez
Maiden was present at two meetings of the Audit
Committee in 2024 while also Interim Chair.
The Audit Committee held four meetings in 2024.
Attendance of members at the Audit Committee’s
meetings during the year can be found in the
Corporate governance report on page 76. The
following, and when appropriate those deputising
for them, were also invited to attend the Audit
Committee’s meetings in 2024:
• Chair of the Board (including Chair designate)
• Chief Executive Officer
• Chief Financial Officer
• General Counsel & Company Secretary
• Director of Group Finance
• Group Financial Controller
• Director of Internal Audit & Risk
• On behalf of the Group’s auditor, the lead audit
partner and other audit team members
From time to time Non-executive Directors who are
not members of the Audit Committee may be invited
to attend meetings of the Audit Committee where this
will facilitate a richer discussion and avoid potential
inefficiencies in repeating a review of matters at both
an Audit Committee and a Board meeting. In 2024
other Non-executive Directors were invited to attend
the meeting in February on this basis for, among other
reasons, the review of principal and emerging risks.
The Group’s Director of Legal Services & Deputy
Company Secretary is the Secretary to the Audit
Committee, as nominee of the General Counsel &
Company Secretary.
The Audit Committee met separately with the
Director of Internal Audit & Risk (and her deputies
when appropriate) and with representatives of the
external auditor without members of management in
attendance. The Audit Committee also met separately
with management but without representatives of
external auditor in attendance.
Role of the Audit Committee
The Audit Committee assists the Board in fulfilling
its oversight responsibilities. The main roles and
responsibilities of the Audit Committee include:
• Monitoring the integrity of the financial statements
of the Company and any formal announcements
relating to the Company’s financial performance,
which includes reviewing significant financial
reporting judgements contained therein.
• Reviewing the effectiveness of the Company’s
internal financial controls and internal control and risk
management systems.
• Monitoring and reviewing the effectiveness of the
Company’s Internal Audit function.
• Maintaining an appropriate relationship with the
Company’s external auditor and reviewing and
monitoring its independence, objectivity and
effectiveness in carrying out the audit process,
taking into account relevant professional and
regulatory requirements and ethical guidance.
Heath Drewett
Chair, Audit Committee
31 March 2025
2024 focus areas
• Monitoring the integrity of financial
statements and other external financial
announcements
• Assessment of effectiveness and maturity
of risk management and internal control
• Assurance in connection with the Group’s
finance modernisation programme
• The external audit tender process
Number of meetings during 2024
4
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Work of the Audit Committee
In carrying out the activities referred to above,
the Audit Committee places reliance on regular
reports from management, the Company’s Internal
Audit function and the external auditor. The Audit
Committee is satisfied that it received sufficient,
timely and reliable information to enable it to fulfil its
responsibilities during the year.
The Audit Committee’s performance evaluation has
been conducted as part of the Board Effectiveness
Review, as described in the Nominations Committee
report on pages 81 to 83, which found the Audit
Committee to be operating effectively.
The Audit Committee conducts an annual agenda of
business covering financial reporting, external audit
activity, internal controls, risk management, internal
audit activity and other specific items as required.
This agenda is reviewed regularly by the Audit
Committee to ensure that it reflects the priorities of
the Company and continues to include all matters
for which consideration must be given in order to
meet the Audit Committee’s corporate governance
responsibilities. Details of the main matters covered
in the business of the Audit Committee at each of its
meetings in 2024 are as follows:
Q1 (February 2024) Q2 (May 2024) Q3 (July 2024) Q4 (November 2024)
• Year-end accounting for 2023*
• External audit report for 2023
• Review of internal controls
• Review of principal and emerging risks
• The content of the 2023 Annual Report
and Accounts and the associated press
release
• External audit plan including half-year
strategy
• Progress reports on information
security initiatives
• Review of performance and
effectiveness of external auditors
• Half-year accounting for 2024*
• External audit report including auditor
quality control and independence
• Review of principal and emerging risks
• External auditors report including
progress against plan for 2024 audit
and findings
• Updates regarding the status of annual
impairment testing and other significant
accounting matters
• Effectiveness assessment of Internal
Audit and reapproval of Internal Audit
charter
• Approval of Internal Audit plan for 2025
• Cyber security update
• Review of the Audit Committee terms
of reference
• The recommendation to the Board
following tender of the external audit
In addition to the above specific matters, the Audit Committee considered at each of its meetings in 2024 the following standing agenda items:
• Review of non-audit fees
• Review of progress reports concerning the Internal Audit Plan for 2024, including approving additions and deferrals proposed
• Review of internal audit reports, including progress on implementing recommendations arising from internal audit work
• Review of reports on activity within the relevant period by the Group’s Operational Compliance Support teams
• Review of updates regarding Oracle Financials, focused in the first three meetings of the year on assurance activity in the lead up to full delivery of the system and in the
fourth meeting on progress following go-live in relation to financial reporting
• Review of reports regarding matters disclosed to the Group’s Speak Up hotline in the first three meetings of the year; the final quarterly report was made to the Board in
December 2024
* In considering accounting for both the year-end and the half year, in discharging its financial reporting responsibilities, the Audit Committee has special regard for accounting policies and compliance with accounting standards, going
concern and viability assumptions, and significant financial reporting estimates and judgements made during the preparation of the Group’s annual and interim accounts.
The Board is updated on key matters and recommendations following each Audit Committee meeting.
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Significant issues related to the financial statements
The Audit Committee has assessed whether suitable accounting policies have been adopted by the Group and whether management has made appropriate judgements and estimates. The table below sets out the key
judgement areas associated with the Group’s financial statements for the year ended 31 December 2024 that were considered by the Audit Committee. This is not a complete list of all issues of accounting, estimation and policy
considered, but includes those which the Audit Committee believes are the most significant. Regarding such issues the Audit Committee considered papers and explanations given by management, discussed each matter in
detail, challenged assumptions and judgements made and sought clarification where necessary. It reviewed and discussed any internal audit reports in respect of the matters under consideration and the Audit Committee also
reviewed a report from the external auditor on the work undertaken to arrive at the conclusions set out in the Independent Auditor's report on pages 123 to 130.
Area Issue and nature of judgement Factors considered and conclusions reached
Defined
benefit
pension
schemes
At 31 December 2024 the Group’s balance sheet included a net asset position of
£117m in respect of its defined benefit pension schemes, which reflects a gross
pension asset of £971m and pension liability of £854m.
The valuation of the pension liability is calculated under the unit credit method
specified in IAS 19 – Employee Benefits and depends on several key assumptions
including the discount rate, inflation forecasts and life expectancy. By their nature,
these estimates are subject to considerable uncertainty and small changes in the
value could materially impact the valuation of the liability.
Management presented the Committee with papers setting out the results of the work done, the assumptions made and the
conclusions reached with respect to the Group’s defined benefit pension schemes. Management explained to the Committee how the
discount rate, inflation and life expectancy estimates were prepared and how sensitive the valuation was to changes in these key
assumptions. After reviewing these papers and obtaining further explanation where necessary, the Committee concluded that
management had taken a consistent, balanced and reasoned approach to preparing its calculations and made acceptable judgements.
Further information is given in the financial statements (note 18 – Pension arrangements).
The carrying
value of
goodwill and
other assets
The Group balance sheet contains £908m of goodwill and other intangible assets
and £1,317m of tangible fixed assets and right-of-use assets.
The Directors are required to determine annually whether those assets have
suffered any impairment. They do so by comparing the present value of future
cash flows for each cash-generating unit with the carrying value of assets. In
addition, the Company balance sheet contains £2,417m of investments. The
Directors compare the net present values of future cash flows from each
investment to the carrying value of the investment in the balance sheet. The
calculations undertaken to help arrive at a conclusion incorporate a consideration
of the risks associated with each cash generating unit and are based upon
forecasts of their long-term future cash flows, which by their nature require
judgement to be exercised and are subject to considerable uncertainty.
The cash flow forecasts used for impairment considerations are prepared from the strategic business plans presented to, and
approved by, the Board of Directors annually. Management presented the Committee with papers setting out the results of the work
done, the assumptions made and the conclusions reached. They explained to the Committee how the cash flow and discount rate
calculations were prepared, the key assumptions and judgements that were made and how sensitive those cash flows were to changes
in the key assumptions. After reviewing management’s papers and obtaining further explanation where necessary, the Committee
concluded that management had taken a consistent, balanced and reasoned approach to preparing its calculations and that the
judgements made were acceptable. It noted that the value-in-use and FVLCD models used by management showed that all material
cash generating units had significant headroom, except for Staircraft and certain branches in the Merchanting segment for which
impairments have been recognised and except for Toolstation Benelux, Travis Perkins General Merchant and CCF for which sensitivity
disclosures have been included in the financial statements. The Committee concurred with the £96m impairment recognised. The
Committee also discussed the calculations supporting the carrying value of investments held by the Company and concurred with
management’s conclusions.
Further information is given in the financial statements (note 9 – Goodwill and other intangible assets and note 29 – Impairment).
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Risk management and internal controls
Risk management
During the year:
• Key risks are collated and reviewed by the Group
Leadership Team (“GLT”) and the Board to assess
the potential impact and likelihood of occurrence,
after taking into account key controls and
mitigating factors, as well as interdependencies.
• Horizon scanning and risk benchmarking is also
undertaken to test the Group’s key risk set and
identify emerging risks, which informs the Board’s
review.
• Risks are also logged and managed on an ongoing
basis at both a Group and business unit level, and
assessed in key strategic and performance review
processes, with additional mitigating actions put in
place to manage risks within the Board’s risk appetite.
The above supports the continuous improvement
approach to risk management adopted by the Group.
Following the deep-dive exercise undertaken in 2023
to assess existing appetite levels and ways of working
with senior leaders, the risk appetite for the Group’s
Principal Risks was reset in November 2023. This
has been reviewed again by the Board and with the
Audit Committee in 2024 to ensure these remain
appropriate and reflective of the Group’s current
risk landscape and approach. No fundamental
changes have been made to the risk appetite set in
2024, and work continues to embed awareness and
understanding of risk management across the Group.
The Statement of principal risks and uncertainties is
set out on pages 59 to 69, together with information
on how those risks are mitigated and how emerging
risks are assessed.
Internal controls
The Company operates a “three lines of defence”
assurance model. The Audit Committee plays a
key role in monitoring activities in respect of the
Company’s internal control and assurance framework
throughout the year, to ensure that risks are
adequately mitigated (see the Statement of principal
risks and uncertainties on pages 59 to 69). The Audit
Committee has received regular updates on the
status of these activities.
The internal control and assurance framework is
intended to support the management, rather than
elimination, of the risk of failure to achieve business
objectives and can only provide reasonable, and not
absolute, assurance against material misstatement
or loss.
The Audit Committee maintained a review of the
effectiveness of the Company’s risk management
and internal controls, concluding that, overall, they
remain effective. In 2024, particular Audit Committee
focus has been on continuing management
initiatives to improve the internal financial control
environment, including in connection with the ongoing
developments in UK corporate reform ("UKCR"), and
where required targeted improvements have been
planned or agreed to continue to improve our control
environment and to appropriately manage risks. The
proposed approach to ensuring that the Group can
meet all reporting requirements of UKCR has been
reviewed by the Audit Committee and this will be a
matter of further Audit Committee focus in 2025.
Oracle Financials will enhance the Group’s
consistency and automation of controls, giving the
Group greater ability to improve its control framework
to support compliance with UKCR. Post-launch
performance of the system has been monitored by
the Audit Committee throughout 2024, including
review of the reports provided by PwC in its capacity
as independent assurance provider. During the
immediate post-implementation period, derogations
to normal internal controls were accepted in some
areas such as the number of super-users and the
frequency of reconciliations to reflect the anticipated
early-life challenges of a new finance system,
however these were appropriately addressed through
mitigating controls.
All major internal assurance processes, including
operational compliance and health and safety, are
also an area of focus for the Internal Audit function
to review and to track recommended control
improvement actions to completion. This is a core
part of the continuous improvement of controls and
the progress of this activity is reported to the Audit
Committee and reviewed at each of its meetings,
which enables its ongoing assessment of the overall
effectiveness of the system of internal control and
risk management. Further explanation of the role of
the Group’s Internal Audit function is given below.
Internal audit
The Internal Audit Plan is the annual plan for delivery
of internal audit activity aligned with the Group’s
strategic priorities, major change programmes and
principal risks. The Internal Audit Plan is, therefore,
a key source of internal assurance for the Group.
The Internal Audit function develops the Internal
Audit Plan, taking into consideration relative levels
of risk, historic coverage and management requests,
and conducts a rolling risk assessment within each
year to ensure that internal audit activities remain
targeted at the areas presenting the most risk to the
Group, as these can change over time. The Internal
Audit function delivers the majority of internal audit
activity, supported as needed by co-source partners
to provide specialist knowledge and skills. The Audit
Committee assesses and approves the Internal
Audit Plan and reviews results and progress at each
Audit Committee meeting. The Audit Committee
will also review and decide whether to approve
recommendations received from the Internal Audit
function regarding updates to the Internal Audit Plan
to ensure it remains aligned with business priorities
and risks.
The audits delivered during 2024 covered a broad
range of operational, financial, legal, regulatory, IT and
transformation activities. Core financial control areas
are audited regularly. In 2024 this included:
• reviews of balance sheet reconciliations;
• critical systems recovery;
• key systems privileged access; and
• security operations.
In addition, Internal Audit has supported the
Oracle Financials programme, and the Kerridge
programme, to deliver a new finance system in BSS,
by undertaking reviews of purchase-to-pay processes
and business continuity readiness, by updating
management and by providing input into changes
to operational ways of working in relation to both
programmes.
The 2025 Internal Audit Plan was approved by the
Audit Committee at its meeting in November 2024.
The 2025 Internal Audit Plan is targeted at assurance
in relation to:
• follow-ups in key areas that have previously been
the subject of the most significant audit findings;
• key technology programmes including those
related to Group finance systems;
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• control effectiveness across key business
functions; and
• areas or processes aligned to principal risks.
Internal Audit will also focus in 2025 on mapping
material controls and assurance in response to the
requirements of the UK Corporate Governance Code.
The 2025 Internal Audit Plan includes standing
annual requirements to review internal financial
controls self-assessments, the basis for the Group’s
Senior Accounting Officer declaration regarding tax
controls, and rolling assurance coverage to support
the Group’s ISO14001 certification. Any subsequent
changes to the Internal Audit Plan will be approved by
the Audit Committee.
All audit findings and agreed management actions
are communicated to the Audit Committee and
tracked to completion. The Audit Committee receives
an update at every meeting on the age of findings
and the level of risk. Internal Audit launched an app
in 2024, allowing management to view and update
agreed actions in real time. This has resulted in a
more focused approach to addressing findings. In
turn, this improves the level of control in relation to
risks identified in the audit findings.
Effectiveness of the Internal Audit function is
assessed against a series of attributes and it was
reported to the Committee that the target level for
each attribute was achieved in 2024. The Internal
Audit function also reported to the Audit Committee
that good progress continues against all three of
the priority areas captured in its strategic pillars:
Alignment to Business Needs; Leverage Data &
Technology; Continuous Improvement. In keeping
with the continuous improvement priority, the Internal
Audit function also sets initiatives in relation to its
strategic pillars annually and reports progress to the
Audit Committee, as the team looks for opportunities
to enhance its standard of effectiveness. In 2024
initiatives focused on the development of the data
analytics capability of the Internal Audit function, to
include the consideration of data analytics in all audit
work, and implementing a forum to bring together
representation from assurance providers across the
Group. This has enabled enhanced cross-functional
working and sharing of knowledge to reduce risk
exposure and increase efficiency.
Based on its review of the updates on activity
undertaken and progress made, the Audit Committee
was satisfied with the effectiveness of the Internal
Audit function and that the quality, experience and
expertise of the function was appropriate for the
Group throughout 2024.
External auditor
The Audit Committee discharges its responsibilities
regarding the external auditor in accordance with
the Financial Reporting Council’s Audit Committees
and the External Audit: Minimum Standard (“FRC
Minimum Standard”).
The Audit Committee confirms that the Company
has complied with the provisions of the Statutory
Audit Services for Large Companies Market
Investigation (Mandatory Use of Competitive Tender
Processes and Audit Committee Responsibilities)
Order 2014.
KPMG LLP has been the external auditor since 2015.
There are no contractual restrictions on the Group
with regard to this appointment. The individual lead
audit engagement partner for KPMG LLP is James
Tracey, appointed in August 2022.
The scope of the external audit plan and strategy for
the external audit of the 2024 Annual Report and
Accounts was presented by the external auditor to the
Audit Committee in November 2024 to enable the
Audit Committee to interrogate the approach.
Assessment of the external auditor
The Audit Committee considers the effectiveness of
the external auditor during the year and, with input
from management, carries out a formal review of
external auditor performance after the year-end audit
has been completed. In undertaking this assessment
the Audit Committee considers:
• The experience and expertise of the external auditor.
• The completion of the agreed external audit plan.
• The content, quality of insights and added value of
external audit reports.
• The robustness and perceptiveness of the external
auditor in its handling of key accounting and audit
judgements.
• The interaction between management and the
external auditor.
• The provision of non-audit services.
Independence and objectivity
Having considered the external auditor’s performance
and representations from the external auditor about
its internal independence processes, plus through
its ongoing review of compliance with the policy on
non-audit work by the external auditor (described
in further detail below) the Audit Committee
was satisfied with the independence, objectivity
and effectiveness of the external auditor and
recommended to the Board that it recommend that
KPMG LLP be reappointed by shareholders at the
Annual General Meeting on 22 April 2024 as external
auditor for the 2024 audit.
Reporting
One of the Audit Committee’s responsibilities is
to ensure compliance with the Board’s policy on
services provided by and fees paid to the external
auditor. The policy sets out the work that is permitted
to be performed by the external auditor and the work
that is prohibited. The amount of non-audit fees
payable to the external auditor in any particular year
cannot exceed 70% of the average of the current and
previous two years’ audit fees.
The process for approving all non-audit work
provided by the external auditor is overseen by the
Audit Committee to safeguard the objectivity and
independence of the external auditor. The Audit
Committee considers whether it is in the interests of
the Company that the services are procured from the
external auditor rather than another supplier.
In 2024 KPMG LLP was engaged to provide non-
audit services only in relation to the June 2024 review
of the Group’s interim financial statements. KPMG
LLP was considered the most appropriate firm to
carry out the work in respect of the interim review
given its knowledge of the Group and the synergies
that arise from running this engagement alongside
the main audit.
The CFO reports to the Audit Committee on fees for
non-audit services payable to the external auditor
at every meeting. During the year the auditor was
paid £3.1m (2023: £2.1m) for audit-related work and
£0.1m (2023: £0.1m) for non-audit work. Non-audit
work related to the review of the Group’s interim
financial statements. Fees for non-audit work were
3% (2023: 4%) of fees for audit-related work. The
total fees paid by the Group to KPMG LLP in 2024
represent 0.1% of KPMG LLP’s UK fee income. In
addition, £2.9m (2023: £2.7m) of fees were paid to
other accounting firms for non-audit work.
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The Audit Committee is satisfied that the non-audit
fees payable to the external auditor in relation to
2024 do not exceed 70% of the average of the
current and previous two years’ audit fees.
External audit tender
Introduction
The Group was required to run a tender process
for the appointment of its external auditor for the
2025 financial year in accordance with applicable
legislation, having appointed KPMG LLP as external
auditor for the 2015 financial year.
Governance
Governance was put in place to ensure a transparent
and robust selection, and evaluation process. A
steering group chaired by the Audit Committee
Chair and including the Interim Chair, Chief Financial
Officer and Group Financial Controller was formed
to oversee, co-ordinate and execute the audit tender
process. The Committee was involved throughout
the process and the Board was included at key
decision points.
Tender process
The process, which ran from July 2024 to December
2024, was in compliance with statutory legislation
and guidance issued by the FRC and was conducted
with the overarching objective of running a process
resulting in a high-quality, effective and efficient audit.
The scope of the tender consisted of the Travis
Perkins plc Group audit and statutory audits of key
subsidiaries with effect from the 2025 financial year.
Selection criteria
A range of candidates were considered, including
audit firms outside the “Big 4” accounting firms.
The Audit Committee and steering group agreed the
selection criteria and which firms would be invited
to tender.
The selection criteria included:
• Audit Quality: findings from the FRC Audit Quality
Review inspections.
• General aspects of the audit firm: independence,
conflicts of interest, ethics and compliance
standards.
• Understanding of the business and industry: audit
credentials in building materials distribution and
the broader construction sector and knowledge of
the Group’s business and industry.
Invitation to tender
Three firms were invited to tender, including a firm
from outside the “Big 4”. At this stage, one firm
withdrew from the process and therefore two firms
progressed to the next stage.
Assessment criteria
The requirements for the tender document and
selection criteria were set out and detailed in the
request for proposal and included:
• Confirmation of independence and details of how
the firm monitors and maintains its independence,
and the governance in place to ensure conflicts of
interest do not arise.
• The firm’s and the team’s credentials.
• Internal quality assurance processes and output
from latest FRC reviews.
• Understanding of Travis Perkins plc and the
industry in which it operates.
• Audit approach: proposed scope, approach to
controls and integration of technology in the audit,
approach to technical judgements, availability of
audit tools and their use to provide value-add
insights.
• Audit planning: timetable, interaction with business
finance teams including Toolstation and BSS,
approach to working with management and
approach to resolving issues.
• Technical expertise including firm’s experience and
expertise in relation to sustainability reporting and
assurance.
• Fees and terms.
• Transition approach, detailing how the firm will
interact with the incumbent external auditor and
the Group to ensure an effective and efficient
process.
Each firm submitted a detailed tender document and
provided an oral presentation of their proposal for
external audit services to the steering group.
Final selection
The Committee agreed that both firms submitted
excellent, professional and thorough tender
proposals. However, after taking into account the
process as a whole, the views of senior management
who met with each firm, the presentations and results
against the evaluation criteria, the Board identified
Deloitte as the preferred new external auditor. We are
now working closely with both KPMG and Deloitte to
ensure that, if shareholders approve the proposed
appointment of Deloitte at the 2025 AGM, there
will be an efficient transition of the external audit.
Deloitte shadowed key meetings through the 2024
audit process and regular reports on the transition are
being provided to the Committee.
The recommendation of Deloitte was free from
influence by a third party and no contractual term
of the kind mentioned in Article 16(6) of the Audit
Regulation has been imposed on the Company
whereby there would be a restriction on the choice to
certain categories or lists of audit firms.
Financial Reporting Council
During 2024 the Audit Committee monitored the
Group’s engagement with external stakeholders
relevant to the Audit Committee’s areas of oversight,
including the Financial Reporting Council (“FRC”).
In preparing the Group’s Annual Report and Accounts,
the Group responds to the recommendations of the
FRC made through its reviews of corporate reporting
and its thematic reviews of specific areas of corporate
reporting.
Heath Drewett
Chair, Audit Committee
31 March 2025
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DIRECTORS’ REMUNERATION REPORT
Dear Shareholder,
As Chair of the Remuneration Committee,
I am pleased to present the 2024 Directors’
remuneration report.
Performance in 2024 has continued to be tough,
hampered by persistently weak trading conditions as
well as a number of significant internal challenges.
In light of these challenges and profit delivery
below market expectations, the Group will not pay
any bonuses to Executive Directors in respect of
2024 performance. In addition, the Remuneration
Committee exercised its discretion to adjust the
vesting outcome for 2022 Restricted Share Plan
“RSP” awards for former Executive Directors, in
recognition of the Group’s performance and not
meeting the Return on Capital Employed underpin.
As a result of this decision, RSP awards granted to
former Executive Directors in 2022 and with a vesting
period from 2022 to 2024 lapsed in full.
Leadership changes
Nick Roberts stepped down from his role as Chief
Executive on 16 September 2024. Pete Redfern
joined the Group as Chief Executive on 16 September
2024. Pete Redfern’s salary on appointment was set
at £760,000. This positioning, whilst higher than his
predecessor, reflected his skills and significant prior
experience as Chief Executive of Taylor Wimpey.
His annual incentive opportunity for 2024 was set
in line with policy at 180% of salary and he received
an RSP award on appointment with a grant value of
125% of salary. His pension entitlement was set at
10% of salary, in line with the rate available across
the wider workforce. As a result of ill health, Pete
Redfern stepped down from the Board and ceased
employment on 10 March 2025.
Alan Williams retired as Chief Financial Officer on
9 January 2024 and left the Group on 31 January
2024. The new Chief Financial Officer, Duncan
Cooper, joined the Group on 9 January 2024. As
detailed in the 2023 Directors’ remuneration report,
Duncan’s base salary was set at £525,000, which
was lower than that of his predecessor.
Jasmine Whitbread stood down as Chair on 31
May 2024, with Jez Maiden, Senior Independent
Director, assuming the role of Chair on an interim
basis for the remainder of 2024. On 10 July 2024,
the appointment of Geoff Drabble as Non-executive
Director and Chair (designate) was announced,
with effect from 1 October 2024. Geoff took up the
position of Chair on 1 February 2025, with the fee
set at £350,000 from the date of appointment,
reflecting the expected time commitment of the role
and the calibre of the individual.
Remuneration policy
The remuneration policy was approved by 79%
of shareholders. In light of the voting outcome,
the Remuneration Committee Chair engaged with
those shareholders that voted against the policy
to gain a better understanding of their views. This
indicated that the key reason for opposition from those
shareholders was a lack of support for elements of the
RSP, in the context of underlying performance in 2024.
Ahead of 2025, the Remuneration Committee
reviewed the operation of its policy at its meeting in
December, taking into account the feedback received
at the 2024 AGM and the relatively new executive
team amongst other things. The key conclusion
was that whilst the current RSP has the potential to
support the Group with the retention of executive
talent through a period of business turnaround, it
does not align with the cultural transformation that
is in the early stages of being implemented. As
announced in the Q3 Trading Update, the priorities
are driving and incentivising branch-led performance,
increasing operational effectiveness and identifying
further ways to make the business run more
efficiently to ensure the delivery of greatly improved
returns to shareholders. In this context, performance
shares with stretching performance targets provide
a much stronger and direct performance-linkage for
senior business leaders to complement the cultural
change being implemented across the Group.
As a result, at the 2025 AGM, an amended
remuneration policy will be tabled to replace the
Restricted Share Plan with a Performance Share Plan.
The maximum award level under the Performance
Share Plan will be 250% of salary, which has been
determined based on the current Restricted Share
Plan maximum of 125% of salary and the market-
standard conversion ratio of 1:2 performance shares
to restricted shares. Performance will be measured
over a three-year period and a two-year post-vesting
holding period will apply to vested shares, meaning
any vested shares will be released five years
after grant.
Subject to shareholder approval, long-term incentive
awards in 2025 will be granted under this new PSP,
with vesting based on the following equally-weighted
performance conditions:
• 33% on adjusted earnings per share (“adjusted
EPS”)
• 33% on relative total shareholder return (“TSR”)
• 33% on adjusted return on capital employed
(“adjusted ROCE”)
Louise Hardy
Chair, Remuneration Committee
31 March 2025
2024 focus areas
• Approval at the 2024 AGM of the
remuneration policy
• Appointment of Duncan Cooper, Chief
Financial Officer
• Appointment of Pete Redfern, Chief Executive
Number of meetings during 2024
7
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Adjusted ROCE has been chosen as it directly
contributes to shareholder value creation. Adjusted
EPS aligns with consistent delivery of profitable
growth, which is expected to support shareholder
returns through operational delivery driving a re-
rating of the share price. The use of TSR ensures
there is a relative measure that will only reward
executives if there is outperformance compared to
the FTSE 250 (excluding Investment Trusts).
25% of the award vests on the achievement of
threshold performance, with the full award vesting
on the achievement of the maximum performance
target, with straight-line vesting in between threshold
and maximum. Details of the targets applying to the
2025 award are set out on page 97.
In line with institutional investors’ best practice
expectations, at the time of testing performance
against the above conditions, the Committee will have
the ability to adjust the vesting outcome if it considers
that the vesting level is not reflective of the underlying
performance of the executive or the Group (e.g. in
the event there was a perceived windfall gain) or the
vesting outcome was not consistent with the overall
experience of shareholders or other stakeholders
having had regard to the circumstances during the
performance period.
There are no other changes to the current
remuneration policy.
Each part of the remuneration package plays an
important role in driving performance to deliver the
Group’s strategy and improve shareholder returns.
The link between the Group’s strategy and incentive
measures is detailed under the “Remuneration in
2024 – at a glance” section on page 94.
Shareholder engagement
As part of the review of the remuneration policy, the
Committee engaged with major shareholders and
the leading advisory agencies to explain and provide
context for the proposed amendment to reintroduce
the Performance Share Plan and detail its operation
for 2025. The consultation process involved a letter
being sent to the 20 largest institutional shareholders
who collectively own over 70% of the Group’s shares
to ask for feedback on the proposals and offering
meetings on request.
The Committee met with or received written
feedback from 15 investors as well as the advisory
agencies. The proposed replacement of the
Restricted Share Plan with a Performance Share
Plan was positively received by the vast majority of
shareholders consulted. There was some challenge
around the top end of the EPS target range noting
the market competitive award size at 250% of
salary. The Committee considered the feedback and
subsequently increased the maximum EPS target
from 75p to 80p. The Committee was comfortable
that this increase was appropriate, taking account of
the following factors:
• It is a stretch compared to the internal plan,
especially given current trading conditions;
• Using a three-year historical average price/
earnings ratio of around 15x, the target implies a
doubling of the share price over three years; and
• The maximum EPS target is significantly ahead of
the market consensus for 2026. There is no
consensus available for 2027.
The Committee did consider reducing the size of the
award instead of increasing the EPS target. However,
given the factors above and as the proposed awards
have broadly the same value as historical awards
of Restricted Shares (i.e. Performance Shares are
generally discounted by 50% when converting to
Restricted Shares), it was felt that 250% of salary
was appropriate in the context of the management
team having been recruited on a policy of making
Restricted Share awards at 125% of salary.
2025 salary review
This year’s annual salary review was a difficult
balancing act, in delivering pay awards across
all levels of the organisation that are affordable
and fair, whilst also taking account of higher than
anticipated uplifts to the National Living Wage
minimum pay rates and additional employer National
Insurance contributions taking effect in April 2025.
Whilst inflation stabilised during 2024, living costs
have remained high relative to earnings for many
colleagues, and a key focus has been to ensure that
lower earners receive a meaningful pay uplift and
that appropriate pay differentials are maintained
for colleagues working at different levels across the
Group. Over half of the workforce will receive a salary
increase above the rate of inflation on 1 April 2025,
whilst higher earners will receive a salary increase of
1.5%. Entry-level colleagues and apprentices are paid
above the statutory minimum.
Taking into account current market conditions, cost
constraints and the approach to the pay review for
the wider workforce, the Remuneration Committee
reviewed the salaries of Executive Directors and
determined that there would be a salary increase
of 1.5% from 1 April 2025, in line with the approach
taken for other management levels across the Group.
This follows a similarly restrained approach to setting
salaries for executives in the past. The former Chief
Executive (Nick Roberts) received a 1.5% salary
increase in April 2024, and he and the former Chief
Financial Officer (Alan Williams) received a 4% salary
increase in April 2023 and a 3% increase in April
2022, which were lower than the increases offered to
the wider workforce.
Non-executive Directors’ fees were reviewed but not
increased in April 2024. The Chair’s fee was set on
his appointment on 1 February 2025. The fees for
Non-executive Directors will next be reviewed in
April 2025.
2025 bonus plan
The Committee reviewed the annual bonus plan
for 2025 to ensure the use of clear and simple
performance measures focused on driving the
recovery of the business. Reflecting the move to a
more business-focused, performance-driven culture,
it was decided that it would be appropriate to remove
the element of the bonus plan that is linked to strategic
performance until the new business strategy has
been formulated and communicated externally and
internally. This allows for greater focus on the Group’s
key financial priorities in 2025, as it recovers from
a sustained period of underperformance through
depressed market conditions. This is intended to be
a temporary change and it is expected that strategic
measures will be reintroduced in future years.
For 2025, the key financial metrics will be operating
profit and cash performance. Operating profit has
been chosen to ensure that there is a continued focus
on driving revenue and managing costs to deliver
profit to shareholders. Operating cash flow is a critical
measure for the business to ensure that there are the
necessary resources to invest and deliver long-term
returns to shareholders.
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Cash performance will be measured against an
absolute operating cash flow target in 2025 instead of
the operating cash conversion measure that applied
for 2024, as it is felt that this is a more appropriate
measure given the reduction in operating profits over
the past two years. These financial measures ensure
the business is focused on delivering top and bottom
line growth, while continuing to drive accountability
on efficient management of stock and debtors and
disciplined capital expenditure.
Prior to his stepping down from the Board and
ceasing employment, part of Pete Redfern’s annual
bonus was based on the operating profit of the Travis
Perkins General Merchant business, reflecting his
dual role as Interim MD, Travis Perkins in addition to
being the Chief Executive of the Group. The former
Chief Executive’s annual bonus was, prior to his
cessation of employment, weighted 50% on Group
adjusted operating profit (excluding property profits),
25% on Travis Perkins General Merchant operating
profit and 25% on Group adjusted operating cash
flow. The Chief Financial Officer’s annual bonus
will be weighted 75% on Group adjusted operating
profit (excluding property profits) and 25% on Group
operating cash flow.
For 2025, the bonus opportunity will start accruing at
a threshold performance level, rising from 0% to 50%
of maximum payout for achieving target, with payouts
on a straight-line basis in between threshold and target,
and target and maximum. The maximum opportunity
will be unchanged at 180% of salary for Executive
Directors. The target bonus opportunity for 2025, at
50% of maximum, has been increased from 25%
of maximum that applied as a temporary measure
for 2024. This reflects a return to standard market
practice and the challenging performance targets,
which relate only to financial measures in 2025.
2025 Performance Share Plan
The first award under the Performance Share Plan
will be made following the 2025 AGM, subject to
shareholder approval of the amendment to the
current policy. The Chief Financial Officer will be
granted a PSP award equivalent to 250% of salary.
A future Chief Executive appointment will be eligible
to participate in the PSP on similar terms to the
Chief Financial Officer, depending on the timing of
any appointment and the amendment of the current
policy at the 2025 AGM.
Performance will be assessed against three equally-
weighted performance conditions which align to
the overall focus on sustainable value creation. The
performance conditions and targets for the 2025
award are set out below, with maximum vesting
requiring around a 100% increase in profitability from
2024. The Committee considers the maximum target
to be genuinely stretching at the top end in light of
ongoing challenging market conditions, whilst the
lower end of the performance ranges have been set
to be realistically achievable in this context.
• 33% on adjusted EPS for the year ended 31
December 2027, threshold at 65p and maximum
at 80p;
• 33% on adjusted ROCE for the year ended 31
December 2027, threshold 9% and maximum
10.5%; and
• 33% on relative TSR, threshold at median and
maximum at upper quartile.
To the extent that there are acquisitions or disposals,
share buybacks or balance sheet events that
materially impact the Group’s gearing (or other
factors at the Committee’s discretion), the Committee
would review the targets with a view to ensuring they
fulfil their original intent.
Incentive outcomes in 2024
Weak trading conditions persisted throughout 2024,
affecting all parts of the Group. As a result of these
challenging conditions the Group downgraded its
profit guidance in August 2024 and in October 2024.
Performance against the key financial objectives in
2024 was as follows:
• Group adjusted operating profit of £152m vs bonus
target of £180m; and
• Group adjusted operating cash conversion of 130%
vs bonus target of 149%.
2024 bonus payout – downward discretion
exercised to award 0% of maximum
The annual bonus plan for Executive Directors
in 2024 was based on adjusted operating profit
(weighted at 55% of maximum), operating cash
conversion (25% of maximum) and strategic
performance (20% of maximum).
Group operating profit and operating cash conversion
performance for 2024 were both below the threshold
level, resulting in no payout against either of the
financial measures. The Committee assessed
the delivery against strategic measures at 22% of
maximum (more details on page 95), meaning that
a total of 4.4% of the total bonus opportunity was
achieved during 2024.
In light of profit performance for 2024 being
significantly below the initial guidance to market
earlier in the year, and given that much of the wider
workforce will not be receiving bonus payouts for
performance over the same period, aligned with
management’s recommendation, the Committee
used its discretion and did not award any bonus
payout for Executive Directors for 2024.
2022 RSP award – nil vesting in 2025
Long-term incentive awards granted to the former
Executive Directors in 2022 were made in the form
of Restricted Share Plan (“RSP”) awards, under the
plan that was first introduced as part of the previous
Directors’ remuneration policy approved at the 2021
AGM.
In accordance with the previous remuneration policy,
for Executive Directors, 75% of the 2022 RSP award
vests after three years (March 2025) and 25% of the
award vests after five years (March 2027). For other
participants, RSP awards vest three years after grant.
Whilst there are no performance targets attached
to the vesting of RSP awards, the Committee may
consider adjusting the extent to which awards will vest
in the event the Group fails to meet the applicable
performance underpins over the vesting periods.
The performance underpins for 2022 RSP awards
were:
• Average adjusted return on capital employed
above 9%; and
• Satisfactory governance performance including no
ESG issues occurring or being identified by the
Board which, in the Board’s opinion, have resulted
in, or could result in, material reputational damage
to the Group.
Average adjusted ROCE performance over the three
financial years ended 31 December 2024 at 7.8% did
not meet the adjusted ROCE underpin. As a result
of the adjusted ROCE underpin being missed, the
Committee undertook an assessment to determine
whether it was appropriate to scale back the level
of payout under the award. In recognition of wider
performance delivery over the past three years, as
well as the decline in the Group’s share price, the
Committee concluded that it was appropriate that
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2022 RSP awards for Executive Directors do not vest.
The Committee consequently exercised its discretion
for these awards to lapse in full. In reaching this
conclusion, the Committee noted that future RSP
vesting would be considered having had regard to
the relevant performance underpins as well as wider
business performance and so the treatment of 2022
awards was not considered to set a precedent as to
the approach that would be taken in future years. For
Executive Directors, 25% of the 2022 RSP award
remains subject to the performance underpins over
five-year period ended 31 December 2026.
Continuing to support colleagues in
challenging times
Whilst needing to manage costs carefully in a
challenging environment, a comprehensive package
of benefits is offered to colleagues to support their
financial, health and wellbeing needs. A key part of
this has been the provision of the Wagestream tool
to all colleagues from 2022, which allows colleagues
to access a portion of their salary each month before
pay-day to help manage short-term cash flow needs
and allows colleagues to save directly from pay, all
of which helps to build long-term financial resilience.
30% of colleagues have enrolled with Wagestream
and the short-term savings built up by colleagues
across the Group to date have reached £2.2m.
Other ongoing benefits include short-term loans,
extensive retailer discounts, an employee assistance
programme and a range of wellbeing and financial
education resources.
Over the past few years the Group has prioritised
higher pay uplifts for lower earners to support
them with cost of living pressures. The Group has
also introduced a free mortgage advice service
and a health and wellbeing benefit, accessible by
all colleagues and their families, which includes
virtual GP advice, health checks, mental health and
nutritional support. All colleagues in the UK and the
Netherlands have the opportunity to participate in the
discounted Sharesave programme, which has seen
consistently high take-up over time.
2025 Annual General Meeting
At the 2025 AGM, the Committee will submit this
annual remuneration report to a shareholder vote
alongside the amendment to the current Directors’
remuneration policy to replace the Restricted Share
Plan with a Performance Share Plan and a resolution
to introduce a replacement long-term incentive
plan in order to facilitate the operation of the PSP
from 2025.
I look forward to receiving your support, and will be
available to answer any questions.
Louise Hardy
Remuneration Committee Chair
31 March 2025
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DIRECTORS’ REMUNERATION REPORT CONTINUED
REMUNERATION IN 2024 – AT A GLANCE
2024 remuneration outcomes
Executive Directors Former Executive Directors
Element
Pete Redfern, CEO1 Duncan Cooper, CFO Nick Roberts, Former CEO Alan Williams, Former CFO
2024 2024 2024 2023 2024 2023
Base salary
(annualised from 1 April)
£760,000
–
£525,000
–
£691,829
+1.5%
£681,605 £554,507
–
£554,507
Annual bonus (% of maximum) – – – – –
Restricted Share Plan (% of maximum): – – – 100% – 100%
Share ownership (% of salary) (as at 31 December, or date of departure if earlier) 269% 39% 297% 392% 566% 648%
1 Pete Redfern stepped down from the Board and ceased employment on 10 March 2025.
PAY FOR PERFORMANCE IN 2024 – AT A GLANCE
The following table shows how performance has been measured under the annual bonus and long-term incentive plans in 2024.
Ambition Strategic KPI Bonus weighting RSP weighting
Profit growth Adjusted operating profit 55% –
Turning profit into cash Adjusted operating cash conversion 25% –
Delivery against investments Average adjusted ROCE – Underpin
Strategic delivery Strategic and operational objectives that continue to lay the foundations to deliver future success 20% –
Governance ESG measures and strong governance framework – Underpin
Delivering value to shareholders Alignment to shareholder experience through share price movement – 100% (since awards are made in shares)
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Annual bonus outcome for 2024: 0% of maximum
The maximum bonus opportunity for Executive Directors is 180% of salary. Half of the bonus earned is
deferred into shares for three years. In light of the Group’s profit performance and the wider stakeholder
experience, the Committee used its discretion and did not award a 2024 bonus payout to Executive Directors.
Strategic performance (22%)
Operating profit (0%)
Operating cash conversion (0%)
0% 25% 50%
% maximum achieved
75% 100%
Annual bonus performance for 2024
Long-term incentive plan outcome for 2022–2024: Committee exercised its discretion to scale
back vesting to 0% of maximum
The maximum RSP award for Executive Directors was 125% of base salary. The ROCE underpin of an average
of 9% over the performance period was not met with actual average ROCE of 7.8% over the period. Under the
terms of the RSP this triggered a review of the level of vesting by the Committee. The Committee considered
performance and shareholder experience and determined that the first portion of the 2022 RSP award should
not vest.
The following charts illustrate how incentive outcomes for the Executive Directors have reflected performance
over the past five years.
Historical bonus outcomes for the last 5 years vs Group operating profit
97%
Bonus payment (% of max)
100 500
Group operating profit £m
80 400
£353m
60 300
£295m
£227m
40 200
£180m
£152m
20 100
0% 0% 0%
0%
0 0
2020 2021 2022 2023 2024
% of max
Group adjusted operating profit
Historical LTIP vesting outcomes for the last 5 years
2024
RSP underpin not met & discretion applied 0%
RSP
RSP underpins met 100%
2023
PSP
2022
65%
CIP
100%
RSP underpin performance for 2022 – 2024
Return on capital employed (ROCE)
Governance (including ESG)
one of two underpins achieved
2021
94%
100%
2020
40%
100%
0 20 40 60 80 100
% maximum achieved
All annual bonus and long-term incentive outcomes are subject to malus and clawback. Malus and clawback
provisions apply for up to six years from the date of long-term incentive awards and for three years from the
date of payment of the annual bonus.
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DIRECTORS’ REMUNERATION REPORT CONTINUED
REMUNERATION POLICY REPORT
The Group’s current Directors’ remuneration
policy, which was approved at the 2024
AGM, can be found in full on the Group’s
website. An explanation of the proposed
change to the policy which will be brought to
the 2025 AGM for shareholder approval is
set out in this section. A summary of the key
elements of the remuneration policy and its
implementation during 2024 is outlined in the
annual remuneration report below.
The principles of the Group’s amended remuneration
policy, which were developed taking into account
provision 40 of the UK Corporate Governance Code,
are:
• Alignment to our culture, purpose and values
Remuneration arrangements are determined
taking into account the culture, purpose
and values of the Group, wider workforce
remuneration and emerging best practice as
well as ensuring there is robust governance and
compliance with the 2018 Corporate Governance
Code.
• Delivery of business strategy
Remuneration should support the execution of
the strategy and long-term decision-making,
contributing to the delivery of short and
long- term financial returns for shareholders.
Reward mechanisms should ensure that a
significant proportion of variable pay is delivered
in deferred shares, ensuring that executives retain
a meaningful personal stake in the Group’s long-
term success.
• Rewarding sustainable and consistent
performance
A significant proportion of executive remuneration
is delivered in variable pay that is linked to
business performance. Bonus and PSP outcomes
are linked to performance against a limited
number of measures which are clearly linked to
our strategy and subject to stretching but fair
targets. Reward structures should also reinforce
the Company’s sustainability strategy and ESG
agenda where relevant and appropriate.
• Attraction, development and retention of talent
Total remuneration should be competitive, fair
and equitable, taking into account the size and
scope of the role, external market practice as well
as internal relativities and the wider workforce
context. The principles that guide the approach
to remuneration should be consistent for all
colleagues across the Group. Reward structures
should be clear, simple and transparent so that
colleagues understand the value of their total
remuneration and know how to contribute to
performance.
• Fair and balanced remuneration outcomes
Remuneration outcomes are reviewed in the
context of the shareholder experience, external
climate and wider workforce. The Committee
has the discretion to adjust reward outcomes to
ensure that pay appropriately reflects underlying
business performance and the wider context in
a consistent and responsible way. All colleagues
should be able to share in the success of the
Group through participation in both annual bonus
schemes and longer-term share plans.
• Management of risk
Malus, clawback and discretion provisions,
holding periods and shareholding guidelines,
including post-employment guidelines, should
be in place to create alignment with shareholders
and to mitigate reputational and other risk.
These principles apply across the Group. In addition
to a competitive base salary, colleagues also have
access to an extensive range of benefits, retirement
benefits, an all-colleague Sharesave scheme and
recognition awards.
Proposed change to policy
The proposed change to policy is replacing the
current Restricted Share Plan with a Performance
Share Plan. The policy for the PSP will be as follows:
• The maximum PSP opportunity will be 250% of
salary (which aligns to the maximum under the
current Restricted Share Plan, converted on a
market-standard 1:2 multiple). This reflects the
expected value of the long-term incentive
opportunity agreed with Executive Directors on
appointment in 2024 of 125% of salary under a
Restricted Share Plan. In the context of a business
turnaround, and noting the level of stretch in the
targets, the Committee is comfortable the
maximum opportunity is appropriate.
• Performance conditions will be set each year in line
with the business strategy. For 2025, one third of
the award will be based on EPS, one third on ROCE
and one third on relative TSR.
• 25% of the relevant part of the award vests for
threshold performance, increasing to 100% for
maximum performance.
• The Committee retains discretion to adjust the
number of shares vesting having had regard to
underlying performance across the vesting period
and the shareholder experience during the vesting
and holding periods.
• There are no changes to the three-year vesting
period and two-year holding period or to the malus
and clawback conditions that applied under the
Restricted Share Plan.
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ANNUAL REMUNERATION REPORT
The following sets out the annual remuneration report for 2024, which includes a summary of the remuneration policy, including the proposed amendment to replace the RSP with a PSP, and how it is intended to be
implemented in 2025. This report is subject to an advisory shareholder vote at the 2025 AGM.
Implementation of the Directors’ remuneration policy in 2025
Executive Directors:
The following provides a summary of how the Group intends to implement the Policy during 2025.
Purpose and link to strategy
Individual maximum
opportunity in 2025 Performance measures and weighting in 2025 Operation in 2025
Base salary (increase of 1.5% for the CFO from 1 April 2025)1
Core element of total package, essential to support
recruitment and retention of high-calibre
executives.
CFO: £532,875
(2024: £525,000)
n/a The Remuneration Committee reviewed executive salaries and,
taking into account current market conditions, determined that
the base salary for the Chief Financial Officer would increase by
1.5% from 1 April 2025, which is less than the workforce as a
whole but in line with other management increases.
Benefits (no change)
Maintains a competitive package with a range of
benefits for the Executive Director and his or her
family.
n/a n/a Executive Directors continue to be entitled to benefits in line with
the Policy, including private medical insurance, income protection,
annual leave, company car (or cash alternative), life insurance of
up to five times salary and participation in all-employee share
plans such as Sharesave and Buy As You Earn.
Pension (no change)
Helps executives provide for retirement and aids
retention.
10% of salary in line with the
rate available across the wider
workforce.
n/a Executive Directors participate in a defined contribution
arrangement or receive a cash allowance.
1. Pete Redfern stepped down from the Board and ceased employment on 10 March 2025 and so was not eligible for a 2025 salary increase.
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DIRECTORS’ REMUNERATION REPORT CONTINUED
Purpose and link to strategy
Individual maximum
opportunity in 2025 Performance measures and weighting in 2025 Operation in 2025
Annual bonus (changes in performance measures to focus on critical areas for 2025)
Rewards achievement of annual performance
objectives.
Deferred element encourages long-term
shareholding and aligns reward to shareholder
interests.
Malus and clawback based forfeiture provisions
discourage excessive risk taking and short-term
outlook, ensuring that Executive Director and
shareholder interests are aligned.
Maximum annual bonus
opportunity of 180% of salary.
The Committee reviewed performance measures for 2025 to
ensure they were focused on critical areas to support the recovery
of the business.
The 2025 annual bonus will be based on the following measures:
Chief Executive¹:
• 50% on Group adjusted operating profit (excluding property profits)
• 25% on Group adjusted operating cash flow
• 25% on TP General Merchant operating profit
Chief Financial Officer:
• 75% on Group adjusted operating profit (excluding property profits)
• 25% on Group adjusted operating cash flow
Adjusted operating profit has been chosen to ensure that there is a
continued focus on driving revenue and managing costs to deliver
profit to shareholders. Likewise operating cash flow is a critical
measure for the business to ensure that we have the necessary
resources to invest in the business and return value to shareholders.
Targets are determined in relation to the Group’s budget. For
2025, there is no bonus payment below the threshold level of
performance. 50% of the bonus is payable for target
performance, and maximum payment is made only for
performance in excess of the Group’s budget.
50% of bonus earned is deferred as shares that are held for three
years. Malus and clawback provisions apply up to three years
from the date of award.
Bonus targets are considered to be commercially sensitive, and
disclosure of such may provide an unfair advantage to the
Group’s competitors. However targets, and the corresponding
level of bonus earned, will be disclosed retrospectively in the
relevant reporting period.
Restricted Share Plan (to be replaced by the Performance Share Plan, subject to shareholder approval at the 2025 AGM)
Aligns participants with the shareholder
experience, whereby participants build up a
shareholding in Travis Perkins plc and are
incentivised to deliver sustainable financial
performance and enhance shareholder value over
the long term. Helps retain Executive Directors.
n/a n/a n/a
1. Pete Redfern stepped down from the Board and ceased employment on 10 March 2025 as a result of ill health. The Committee will review the appropriateness of the above bonus metrics and targets on the appointment of a new Chief Executive having regard to the timing of any appointment to ensure the
bonus remains strategically aligned with the role and similarly challenging.
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Performance Share Plan (for awards granted from 2025 onwards)
Purpose and link to strategy
Individual maximum
opportunity in 2025 Performance measures and weighting in 2025 Operation in 2025
Aligns participants with the shareholder
experience, whereby participants are incentivised
to deliver sustainable financial performance and
enhance shareholder value over the long term.
Maximum annual award of
250% of base salary
For PSP awards granted in 2025, the performance conditions are
as follows:
• 33% on relative TSR, measured against the FTSE 250 excluding
Investment Trusts
• 33% on adjusted EPS
• 33% on adjusted ROCE
Targets for each performance condition are set out below. The
targets have been set to be realistically achievable at the lower end
of the performance range and genuinely stretching at the top end:
• Adjusted EPS: threshold 65p and maximum 80p
• Adjusted ROCE: threshold 9% and maximum 10.5%
• Relative TSR: threshold at median and maximum at upper quartile
Any adjustments will be considered by the Remuneration
Committee on a case by case basis but could include for example
acquisitions or disposals, share buybacks or balance sheet events
that materially impact the Group’s gearing (or other factors at the
Committee’s discretion).
25% of the award vests on the achievement of threshold
performance, with the full award vesting on achievement of the
maximum performance target, with straight-line vesting for
performance between threshold and maximum.
Awards vest after three years, subject to a holding period of a
further two years.
Malus and clawback provisions apply up to six years from the
date of award.
Share ownership requirement
Aligns the interests of Executive Directors and
shareholders.
Executive Directors are
required to hold shares valued
at 200% of salary within five
years of appointment.
n/a Executive Directors are also expected to maintain this level of
shareholding (or their actual shareholding if lower) for a period of
two years after stepping down from the Board.
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DIRECTORS’ REMUNERATION REPORT CONTINUED
Non-executive Directors:
Fees and benefits
• The Non-executive Director fees policy is to pay:
– A basic fee for membership of the Board.
– An additional fee to the Chair of a Committee and to the Senior Independent Director, taking into account the additional responsibilities and time commitment of the role.
• The Non-executive Chair receives an all-inclusive fee for the role.
• Non-executive Directors do not receive any other benefits (other than a staff discount card for purchasing products) and are not eligible to join the Group’s pension scheme.
• The review date for Non-executive Directors’ fees is 1 April. The basic fee was last increased by 4% with effect from 1 April 2023, in line with the approach for the wider workforce at the time. There was no increase to the basic fee or
other Non-executive Director fees in April 2024. Jasmine Whitbread was paid an annual fee of £320,000 and stepped down as Chair and from the Board on 31 May 2024. Whilst acting as Interim Chair, Jez Maiden received a pro-rata
payment of this Chair fee from 1 June 2024 to 31 January 2025, in place of his Non-executive Director and Senior Independent Director fee. The fee for the successor Chair, Geoff Drabble, effective 1 February 2025 is £350,000 per
annum. The fee was set taking into account the expected time commitment of the role and the calibre of the individual.
• The current fees are as follows:
– Chair fee £350,000
– Non-executive Director basic fee £64,272
– Audit/Remuneration Committee Chair fee £17,510
– Senior Independent Director fee £12,875
– Stay Safe Committee Chair fee £12,360
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Remuneration elsewhere in the Group
The approach to setting reward for the wider workforce is guided by the same principles that apply to executives, with a focus on attracting and retaining the best talent, competing within the industry sector and against the local
market, and ensuring that pay outcomes are fair and equitable. The salary review process and incentive plan design are broadly consistent throughout the Group. A higher proportion of total remuneration for Executive Directors
and the Group Leadership Team is variable and linked to business performance compared to the wider workforce.
The Group has prioritised its salary review budget on lower earners in recent years in recognition of continuing cost of living challenges. The longer-term aim is to continue to work towards meeting the Real Living Wage across the
Group over time, whilst acknowledging the need to remain competitive at all levels in the organisation and to protect fair and appropriate internal pay relativities reflective of the skills, capabilities and experience of the workforce.
The Group’s wellbeing and benefit programmes are well established and provide comprehensive support to colleagues and their families during the moments that matter. Benefits include pension, share acquisition schemes, an
employee assistance programme, recognition awards, discounts on Group products, an extensive retailer discount programme and a range of health, wellbeing, financial and lifestyle benefits. The take-up and use of benefits are
closely monitored to assess the impact of cost of living pressures and resources have been invested in further communications direct with colleagues, as well as through line managers and offline communication methods such
as driver handheld devices, to ensure that everyone is aware of the support that is available. The benefits offering is regularly reviewed and has steadily expanded over the past few years, with positive feedback from colleagues.
All colleagues based in the UK and the Netherlands also have the opportunity to participate in the Sharesave plan, which allows colleagues to save towards acquiring shares in Travis Perkins plc at a discounted option price.
Senior leaders across the Group also receive long-term incentive awards.
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DIRECTORS’ REMUNERATION REPORT CONTINUED
AUDITED INFORMATION
Single total figure of remuneration
£000
2024
Salary Benefits Pension Total fixed Bonus LTI
1
Other
2
Total variable Total
Executive Directors
Duncan Cooper
4
514 17 51 582 – – 196 196 778
Former Executive Directors
Pete Redfern
3
220 5 22 247 – – – – 247
Nick Roberts
5
486 20 49 555 – – – – 555
Alan Williams
6
34 1 3 38 – – – – 38
Non-executive Directors
Marianne Culver 64 1 – 65 – – – – 65
Geoff Drabble
8
16 – – 16 – – – – 16
Heath Drewett 82 – – 82 – – – – 82
Jora Gill 77 1 – 78 – – – – 78
Louise Hardy
9
82 1 – 83 – – – – 83
Jez Maiden
10
219 1 – 220 – – – – 220
Jasmine Whitbread
7
133 – – 133 – – – – 133
Notes:
1 Long-term incentives (“LTI”) reported for 2024 for Nick Roberts and Alan Williams relate to RSP awards granted in 2022, of which the first tranche (75% of award) is due to lapse in March 2025, as a result of the Committee exercising discretion to reduce vesting taking into account the performance of the
business following the adjusted ROCE performance underpin not being met.
2 The figure disclosed as “Other” for Duncan Cooper relates to LTI buy-out awards in respect of deferred bonus shares forfeited from his previous employer on appointment to the Group, which are not subject to performance conditions. These have therefore been included in the single figure of remuneration in
the year of grant valued based on the share price at the date of grant of £7.89.
3 Pete Redfern was appointed Chief Executive and joined the Group on 16 September 2024 and stepped down from the Board and ceased employment on 10 March 2025. Prior to this, Pete served as a Non-executive Director and as Senior Independent Director until 1 June 2023 and stepped down from the
Board on 19 September 2023.
4 Duncan Cooper was appointed Chief Financial Officer and joined the Group on 9 January 2024.
5 Nick Roberts stepped down from the Board and from his role as Chief Executive on 16 September 2024.
6 Alan Williams retired as Chief Financial Officer on 9 January 2024 and stepped down from the Board on 23 January 2024 and left the Group on 31 January 2024.
7 Jasmine Whitbread stepped down from her role as Chair and from the Board on 31 May 2024.
8 Geoff Drabble was appointed to the Board as Non-executive Director and Chair Designate on 1 October 2024. He took up the role of Chair on 1 February 2025.
9 Louise Hardy was appointed to the Board on 1 January 2023 and as Chair of the Remuneration Committee on 1 December 2023.
10 Jez Maiden was appointed to the Board as Senior Independent Director on 1 June 2023 and appointed as Interim Chair on 31 May 2024. During the period he served as Interim Chair, Jez received an aggregate fee of £186,667.
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Single total figure of remuneration continued
£000
2023
Salary Benefits Pension Total fixed Bonus LTI
1 Total variable Total
Executive Directors
Nick Roberts 675 30 68 773 – 312 312 1,085
Alan Williams 549 19 55 623 – 254 254 877
Non-executive Directors
Marianne Culver 64 – – 64 – – – 64
Heath Drewett 81 – – 81 – – – 81
Jora Gill 76 – – 76 – – – 76
Louise Hardy 65 – – 65 – – – 65
Jez Maiden 45 – – 45 – – – 45
Pete Redfern 51 – – 51 – – – 51
Jasmine Whitbread 320 – – 320 – – – 320
1 The LTI figures for 2023 reported last year (£318,000 for Nick Roberts and £259,000 for Alan Williams) were calculated on an estimated basis using the average share price of the final quarter of 2023 of £7.76. These figures have been restated to reflect the actual share prices on vesting (£7.56 for the RSP
awards that vested on 1 March 2024).
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DIRECTORS’ REMUNERATION REPORT CONTINUED
Explanatory notes for the single total figure of remuneration table
Salary
Annual salaries for the Executive Directors increased by 1.5% on 1 April 2024. Fees for the Chair and Non-executive Directors were not increased on 1 April 2024.
Benefits
Benefits for 2024 for Pete Redfern, Nick Roberts, Duncan Cooper and Alan Williams include private medical insurance and the provision of a company car and fuel (or allowance alternative).
Benefits for Non-executive Directors include the reimbursement of travel and subsistence expenses for the attendance at Board meetings and the associated tax gross up paid on their behalf.
Directors’ pension entitlements
Duncan Cooper receives 10% of salary, paid as a mix of pension contributions to the Group’s defined contribution pension scheme and a cash allowance. This was also provided to Pete Redfern, Nick Roberts and Alan Williams
until the date of their departure.
The value of Directors’ pension entitlements for the year ended 31 December 2024 (or the date of stepping down from the Board, if earlier) are outlined in the table below.
£000 Pete Redfern Nick Roberts Duncan Cooper Alan Williams
Pension value in the year from employer contributions to defined contribution scheme n/a £7,061 £9,795 n/a
Pension value in year from cash allowance (salary supplement in place of employer pension contributions) £22,024 £41,551 £41,564 £3,415
Total pension benefit accrued £22,024 £48,612 £51,359 £3,415
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Annual bonus for 2024
Annual bonuses for 2024 were based on adjusted operating profit (55%), adjusted operating cash conversion (25%) and performance against strategic measures (20%). For 2024, in order to manage affordability, the bonus was
structured such that there was no payout for below target performance, with 25% of maximum paying out for achieving target performance and 100% of bonus for achieving maximum levels of performance.
The following table summarises the bonus targets and achievement for 2024:
Weighting
Threshold
(0% bonus)
Target
(25% bonus)
Maximum
(100% bonus) Actual performance
Achieved
(% maximum)
Adjusted operating profit 55% n/a £180m £198m £152m 0%
Adjusted operating cash conversion 25% n/a 149% 159% 133% 0%
Strategic performance 20% The Committee assessed performance against a number of strategic measures which were set at the start
of
the year. A summary of performance is provided below. The Committee determined that delivery against
the strategic measures would have resulted in a payout of 22% of maximum for this element of the bonus
plan.
22%
In light of financial performance, the Committee used its discretion and did not award a bonus payout against the strategic measures for 2024.
Strategic measure Summary of strategic performance during 2024 Committee’s assessment
Customer relationships
and market share
Decline in market share for TP General Merchanting and small market gain for Toolstation UK. Negative volume growth in Merchanting and small volume growth
in Toolstation. Increased use of data to drive decision-making.
Not met
Operational efficiency Oracle Financials went live in July 2024 and is in the process of being fully embedded across the Group. The final stage of the Kerridge implementation will be
delivered in early 2025. The Toolstation France business was closed in 2024.
Partly delivered
Sustainability Carbon emission reduction between 2020 and 2024 was 26% for fleet and 75% for buildings, which represents good progress towards the 2027 targets.
Launch of “carbon change-maker” training has been delayed, but over 90% of colleagues participated in environmental training (which includes content on carbon).
Sustainable product definitions were developed but the initial launch into the business was not delivered during 2024. In-depth Scope 3 roadmaps have been
developed with all of the major businesses, allowing carbon impact to be considered in their commercial plans.
4.9% of new colleagues were recruited as apprentices, a reduction on prior year at 8%. 378 colleagues graduated from an apprenticeship in 2024,
at a similar level to the year before and off-track against the target of 10,000 by 2030.
More detail on the Group’s progress against its sustainability and ESG objectives is detailed on page 29.
Partly delivered
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Long-term incentives (LTI)
Long-term incentives in the single total figure of remuneration for 2024 comprise the following awards.
Pete Redfern No value reported in the single total figure of remuneration for 2024, since the first RSP award was granted on appointment in September 2024.
No buy-out awards were granted on appointment.
Duncan Cooper £195,562
A total of 137,502 shares were granted on appointment as compensation for share-based incentives from the previous employer, Crest Nicholson plc, that were forfeited on joining the Group.
Of these, 24,620 shares were granted in April 2024 in lieu of forfeited deferred bonus share awards originally granted in 2021 and 2022 and due to vest in January 2025 and January 2026, subject only to
being employed on the vesting date. The replacement awards will vest on the same dates as the original forfeited awards.
166 shares in respect of dividend equivalents on the deferred bonus shares were added in the vesting period.
A total of 24,786 shares have been included in the single total figure of remuneration for 2024, with their value based on the share price of £7.89 at grant.
The remaining 112,882 shares were granted as performance share awards and will be disclosed as required in the single total figure of remuneration in the year of vesting.
Nick Roberts and
Alan Williams
The first tranche of the 2022 RSP (75% of the award) was due to vest in March 2025. However, as set out below, the Committee exercised its discretion for these awards to lapse in full taking into account
the wider performance of the business following the ROCE underpin not being met. The second tranche (25% of the award) is due to vest in March 2027, subject to the achievement of the performance
underpins.
Consideration of performance underpin for 2022 RSP awards
Average ROCE over the three financial years ended 31 December 2024 at 7.7% did not meet the underpin of 9%. Performance against the other underpin on governance including ESG issues was assessed as satisfactory. In
accordance with the terms of the underpin, as a result of the ROCE underpin being missed the Committee undertook an assessment to determine whether it was appropriate to scale back the level of payout under the award. In
recognition of wider performance delivery over the past three years, including a number of profit warnings during 2023 and 2024 and a decline in the Group’s share price, the Committee concluded that it was appropriate that
2022 RSP awards for Executive Directors do not vest. Therefore the Committee exercised its discretion for these awards to lapse in full. For Executive Directors, 25% of the 2022 RSP award remains subject to the performance
underpins for the 5-year period ended 31 December 2026.
Overall, the Committee considers that the remuneration policy, noting the exercise of Committee’s discretion to adjust remuneration outcomes, has operated as it intended during 2024.
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Payments to past Directors and payments for loss of office
Pete Redfern
Pete Redfern stepped down from the Board and ceased employment on 10 March 2025 due to ill health. Pete did not receive any payments or compensation for loss of office. His six-month notice period under his service
agreement was waived and accordingly he will not receive any notice payment or payment in lieu of notice.
In accordance with the remuneration policy and relevant plan rules, as a leaver due to ill-health, Pete Redfern’s 2024 RSP award will remain capable of vesting on its normal vesting date on 16 September 2027 subject to (i) an
assessment of the applicable performance underpins; and (ii) a pro-rata reduction to 10 March 2025 (unless the Remuneration Committee determines such other period should apply). A two-year holding period shall apply to
any shares received on exercise of the award following vesting. The 2024 RSP award will remain subject to malus and clawback provisions. Pete Redfern will not be eligible to receive any Restricted Share Plan award in 2025.
The Committee determined that, given Pete Redfern’s shareholding had been built through shares acquired in the market (as opposed to from vested share awards) over a short period of employment, and in light of the
circumstances of his cessation of employment being due to ill health, the post-employment shareholding guideline for Executive Directors will not apply.
Nick Roberts
Nick Roberts stepped down from the Board and from his role as Chief Executive on 16 September 2024. In accordance with the remuneration policy, after he stepped down from the Board, Nick received salary (£203k),
benefits (£6k) and pension (£20k) until the end of the 2024 financial year, and will continue to receive salary, benefits and pension until the end of his notice period on 27 March 2025. Nick remained eligible for a bonus for
the 2024 performance year pro-rated to the date he stepped down from the Board on 16 September 2024. As noted above, the Committee determined that no bonus would be payable to the Executive Directors in respect of
2024. Nick is not eligible for an annual bonus in respect of the 2025 performance year.
Nick’s unvested RSP awards (granted in 2022 and 2023) remain capable of vesting on their normal vesting dates, subject to time pro-ration and applicable holding periods. 75% of the 2022 RSP award will lapse in March 2025,
as set out on page 106, and the remaining 25% is due to vest in March 2027 subject to the performance underpins. The 2023 RSP award is due to vest in March 2026 and March 2028, subject to the performance underpins.
Nick did not receive a RSP award in 2024. 75% of the 2021 RSP award vested in March 2024, as disclosed in the 2023 remuneration report. Having regard for the performance of the Group in the period prior to the cessation of
his employment, the Committee used its discretion to lapse the remaining 25% of the 2021 RSP award, which was due to vest in March 2026.
Nick’s outstanding 2022 Deferred Share Bonus Plan award will vest in full on its normal vesting date in March 2025. All other long-term incentive plan awards have vested but are, and will remain, subject to their applicable
holding periods. Nick remains subject to the shareholding requirement policy for a period of two years after stepping down from the Board.
Alan Williams
Alan Williams stepped down from the Board and retired as Chief Financial Officer on 9 January 2024 and his employment with the Group ceased on 31 January 2024. Alan did not receive any payments or compensation for
loss of office. In accordance with the remuneration policy, after he stepped down from the Board, Alan received salary (£12k) and benefits (£1k) and pension (£2k) until his last date of employment with the Group on 31 January
2024. As a good leaver under the Policy by way of retirement with the agreement of the Board, Alan remained eligible for a pro rata bonus for the 2024 performance year to the date of his retirement on 31 January 2024. As
noted above, the Committee determined that no bonus would be payable to the Executive Directors in respect of 2024.
In accordance with good leaver treatment under the Plan Rules having left employment by way of retirement with the agreement of the Board, Alan’s unvested RSP awards (granted in 2022 and 2023) remain capable of vesting
on their normal vesting dates, subject to time pro-ration and applicable holding periods. 75% of the 2022 RSP award will lapse in March 2025 as set out on page 106, and the remaining 25% is due to vest in March 2027
subject to the performance underpins. The 2023 RSP award is due to vest in March 2026 and March 2028, subject to the performance underpins.
Alan’s outstanding 2022 Deferred Share Bonus Plan award will vest in full on its normal vesting date in March 2025. All other long-term incentive plan awards have vested but are, and will remain, subject to their applicable
holding periods. Alan remains subject to the shareholding requirement policy for a period of two years after stepping down from the Board.
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Share interests awarded during the financial year
The Restricted Share Plan was approved by shareholders at the Annual General Meeting held on 27 April 2021.
Before granting awards under the RSP in 2024, the Committee took into account shareholder guidance that where the share price has fallen significantly compared to prior years, awards should be scaled back. The Committee
considered that, although the share price at grant was lower than the prior year, it was not significantly lower and therefore they felt that it was appropriate to grant at the normal levels. In line with best practice the Committee
retains discretion to adjust the vesting outturns if they are not considered to be reflective of the underlying financial or non-financial performance of the business or the individual over the performance period or where the
outcome is not considered appropriate in the context of the experience of shareholders and other stakeholders.
If the Group does not meet one or more of the underpins, the Committee would consider whether it was appropriate to scale back the level of payout under the award to reflect this. The Committee retains discretion to
determine what level of scale back is appropriate.
2024 long-term incentive awards
Date of award Type of award Basis Face value* Underpin assessment/performance period
Pete Redfern
***
16 September 2024 RSP 125% of salary £949,998
(108,373 shares at £8.766 per share)
1 January 2024 to 31 December 2026**
The award vests after three years, subject to the performance underpins. Shares that vest after three years
are subject to an additional two year holding period post vesting
Duncan Cooper 25 April 2024 RSP 125% of salary £656,248
(92,105 shares at £7.125 per share)
1 January 2024 to 31 December 2026**
The award vests after three years, subject to the performance underpins. Shares that vest after three years
are subject to an additional two year holding period post vesting
25 April 2024 PSP Buy-out £379,328
(48,077 shares at £7.890 per share)
1 November 2021 to 31 October 2024
The award lapsed on 28 January 2025 since the original Crest Nicholson plc performance conditions that
applied to the forfeited award were not achieved
25 April 2024 DSBP Buy-out £87,03 5
(11,031 shares at £7.890 per share)
Not subject to performance conditions in line with the forfeited award
The award vested on 28 January 2025
25 April 2024 PSP Buy-out £511,311
(64,805 shares at £7.890 per share)
1 November 2022 to 31 October 2025
The award vests on 27 January 2026, subject to the achievement of the original Crest Nicholson plc
performance conditions that applied to the forfeited award. 25% of the award may vest for threshold
performance
25 April 2024 DSBP Buy-out £1 07,2 17
(13,589 shares at £7.890 per share)
Not subject to performance conditions in line with the forfeited award
The award vests on 27 January 2026, subject to being employed on the vesting date
* Awards are determined based on the share price prior to the date of the award. Awards are increased at each dividend payment date to reflect the dividends that would have been paid on vested shares between grant and the end of the holding period. The number of shares that vest will usually be reduced
pro-rata to reflect the proportion of the individual’s employment during the vesting period from the grant date to the date of cessation of employment.
** The adjusted ROCE underpin applies over the period stated, with the governance/ESG underpin applying to the date of vesting.
*** Pete Redfern stepped down from the Board and employment on 10 March 2025. He will retain a pro-rata interest in the 2024 award having ceased employment by way of ill health.
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2024 Deferred Share Bonus Plan (“DSBP”)
As no bonus was earned in respect of 2024, there will be no share awards under the Deferred Share Bonus Plan in 2025. There was also no annual bonus payout for 2022 and 2023 (and therefore no deferred share award in
2023 and 2024).
Director’s shareholding and share interests – Executive Directors
Formal shareholding requirements apply to Executive Directors and senior executives. The Committee may decide to scale back or withhold participation in long-term incentives if the requirements are not met or maintained.
Executive Directors are required to hold shares valued at 200% of salary within five years of appointment.
Directors’ shareholdings and share interests as at 31 December 2024 are outlined in the table below:
Executive Director
Beneficially
owned shares
1
Conditional
shares under
PSP
2
Unvested RSP
options
3
Unvested
unconditional
shares under
DSBP
4
Unconditional
options under
Sharesave
5
Vested but
unexercised
options
6
Total interests
Total interests
which count
towards
shareholding
requirement
7
Shareholding
(% of salary)
8
Pete Redfern9 252,966 – 109,109 – – – 362,075 252,966 269%
Duncan Cooper 11,987 113,648 92,730 24,786 – – 243,151 25,124 39%
Former Executive Directors
Nick Roberts 97,132 – 161,976 39,554 2,688 256,409 557,759 254,992 297%
Alan Williams 297,217 – 175,379 31,959 – 106,134 610,689 370,406 540%
1 Includes ordinary shares beneficially held at 31 December 2024 (or date of stepping down from the Board if earlier) by the executive and their spouse/partner.
2 Includes buy-out replacement awards in respect of performance share awards forfeited on leaving the previous employer. Vesting is subject to the achievement of the original Crest Nicholson plc performance conditions in line with the original vesting and release schedule.
3 Includes outstanding awards made under the Restricted Share Plan (RSP). Vesting of these awards may be scaled back if one or more of the performance underpins is not met, subject to Remuneration Committee discretion.
4 Includes outstanding awards made under the Deferred Share Bonus Plan (DSBP), which are not subject to performance conditions. In the case of Duncan Cooper, this relates to buy-out replacement awards in respect of deferred share bonus awards forfeited on leaving his previous employer.
5 Includes outstanding options under the Sharesave (Save As You Earn) plan.
6 Includes outstanding awards under PSP and CIP which have vested but have not yet been exercised. No PSP and CIP awards have been granted since 2020.
7 Interests qualifying towards the shareholding requirement comprise ordinary shares beneficially held at 31 December 2024 (or date of stepping down from the Board if earlier) by the executive and their spouse/partner and the post tax value (53%) of outstanding DSBP awards and any other share options which
have vested but have not been exercised.
8 Shareholding as a % of salary is calculated based on the Executive Director’s salary as at 31 December 2024 (or date of stepping down from the Board if earlier).
9 Pete Redfern stepped down from the Board and ceased employment on 10 March 2025.
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During 2024 the following awards were exercised:
Nick Roberts Exercise date
Number of
shares Price per share
2019 Performance Share Plan 20 September 2024 83,882 £9. 274
Director’s shareholding and share interests – Non-executive Directors
Non-executive Director
Beneficial shareholding
(as at 28 February 2025)
Beneficial shareholding
(as at 31 December 2024
or stepping down from the
Board if earlier)
Beneficial shareholding
(as at 31 December 2023)
Geoff Drabble 31,109 31,109 –
Jasmine Whitbread – 6,660 6,660
Coline McConville – – 4,003
Pete Redfern 252,966 252,966 10,012
Marianne Culver 728 728 728
Heath Drewett – – –
Jora Gill – – –
Louise Hardy – – –
Jez Maiden 1,000 1,000 1,000
There were no material changes in Directors’ share ownership between 31 December 2024 and 28 February 2025.
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Unaudited information
Service contracts
Each of the Executive Directors has a service contract, which will be available for inspection at the Annual General Meeting or at the Group’s registered office. These contracts provide for six months’ notice from the Directors
and 12 months’ notice from the Group. They do not specify any particular level of compensation in the event of termination or change of control. Details of the Group’s policy on payments in respect of loss of office are provided
in the Directors’ remuneration policy.
The dates Executive Directors service contracts were entered into are as follows:
• Pete Redfern (stepped down from the Board and ceased employment on 10 March 2025) – 16 September 2024
• Duncan Cooper – 9 January 2024
Non-executive Directors do not have a service contract, but each has received a letter of appointment which will be available for inspection at the Annual General Meeting or at the Group’s registered office.
Non-executive Directors’ and the Chair’s letters of appointment do not have expiry dates, however, other than in the most exceptional circumstances, Non-executive Directors and the Chair of the Board will not serve for more
than nine years.
Director Expiry of appointment letter
Geoff Drabble October 2034
Marianne Culver November 2028
Heath Drewett May 2030
Jora Gill August 2030
Louise Hardy January 2032
Jez Maiden June 2032
In accordance with best practice, the Non-executive Directors stand for re-election annually.
No compensation is payable on termination of the employment of Non-executive Directors, which may be with or without notice.
Funding of equity awards
Both executive incentive arrangements and entitlements under the HMRC approved all-colleague Sharesave scheme are satisfied by shares purchased in the market. Shares purchased in the market are held by a trust and the
voting rights relating to the shares are exercisable by the Trustees in accordance with their fiduciary duties. As at 31 December 2024, the trust held 1,192,183 shares.
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Total shareholder return performance graph
For comparative purposes the FTSE 350 index has been selected as this is the index of which the Group was a member during the reporting year.
Total shareholder return
200
150
100
50
0
Jan 15 Dec 24Dec 14 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 Dec 23
Travis Perkins plc FTSE 350
TSR is rebased to 100 from 1 January 2015.
Historical CEO pay
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Single figure remuneration (£000) £2,360 £2,575 £2,532 £2,258 £2,622 £696 £4,446 £1,905 £1,091 £802
Annual bonus payout (% of maximum) 32% 24% 72% 35% 89% – 97% 0% 0% 0%
Vesting of Restricted Share Plan (% of maximum) – – – – – – – – 100% 0%
Vesting of Performance Share Plan (% of maximum) 97% 54% 40% 40% 46% 40% 94% 65% – –
Vesting of Co-Investment Plan (% of maximum) 44% 97% 100% 100% 100% 100% 100% 100% – –
Data for 2015-2018 relates to John Carter. Date for 2019 relates to both John Carter and Nick Roberts reflecting their tenure in the role of CEO during the year. Data for 2020-2023 relates to Nick Roberts. Data for 2024 relates
to both Nick Roberts and Pete Redfern reflecting their tenure in the role of CEO during the year.
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CEO to all-employee pay ratio
The following table provides pay ratio data in respect of the CEO’s total remuneration compared to the 25th, 50th and 75th percentile employees.
Year Method
25th percentile
pay ratio
Median
pay ratio
75th percentile
pay ratio
2024 Option A 30 27 22
2023 Option A 45 39 32
2022 Option A 79 69 56
2021 Option A 206 168 134
2020 Option A 37 30 23
2019 Option A 133 109 81
The employees used for the purposes of the table above were identified on a full-time equivalent basis as at 31 December 2024. Option A was chosen as it is considered to be the most accurate way of identifying the relevant
employees. Employee pay includes salary, allowances, overtime, bonus, commission, benefits and share plan proceeds. For the purpose of the calculation employee pay has been standardised to the equivalent of a 40-hour
working week and mid-year joiners and leavers have been excluded to ensure a like-for-like comparison from one year to the next.
The following table provides salary and total remuneration information in respect of the employees at each quartile:
Year Element of pay
25th percentile
employee
Median
employee
75th percentile
employee
2024 Salary £25,355 £28,007 £32,654
Total remuneration £27,019 £30,144 £35,841
The ratio is consistent with the Group’s wider policies on employee pay, reward and progression. There is a decrease in the CEO pay ratio for 2024. This reflects the fact that there was no bonus payout for 2024 and no long-
term incentive value reported under the 2022 RSP award. There are no changes attributable to changes in the Group’s employment model nor in the methodology used to calculate the ratio.
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Change in remuneration of Directors
The following table sets out the year-on-year percentage change in remuneration for the Executive and Non-executive Directors relative to the wider workforce.
Percentage change in salary/fee earned Percentage change in bonus earned Percentage change in taxable benefits received
2024 2023 2022 2021 2020 2024 2023 2022 2021 2020 2024 2023 2022 2021 2020
Comparative employee group
1
5.9% 5.8% 5.2% 1.5% 1.7% (10.8%) (72.9%) (74.8%) 69.0% (38.0%) 5% 4% 13% (8.5%)
2
8.4%
Executive Directors
CEO – Pete Redfern
5
n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
CFO – Duncan Cooper
5
n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Former Executive Directors
CEO – Nick Roberts
3
(28.0%) 3.7% 2.4% 5.3% (4.0%) – – (100.0%) 97.0% (89.0%) (29.6%) 4.3% 1.1% 1.4% 0.0%
CFO – Alan Williams
3
(91.6%) 3.8% 2.1% 5.3% (3.5%) – – (100.0%) 97.0% (89.0%) (90.5%) (39.8)% – (6.9%) (5.0%)
Non-executive Directors
Jasmine Whitbread
4
(58.4%) – 32.8% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Geoff Drabble
5
n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Marianne Culver – 4.9% 1.7% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Heath Drewett
4
1.2% 2.5% 71.7% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Jora Gill 1.3% 7.0% 184.0% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Louise Hardy
5
27.7 % n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Jez Maiden
6
386.7% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
1 The comparator group is all colleagues within the Merchanting and Toolstation businesses and central functions. Travis Perkins plc is a non-employing entity and so is not used for comparative purposes.
2 During 2021, the Group began to replace the company car fleet with a cash allowance. The reduction reflects the difference between the P11d value and the cash allowance.
3 During 2020 Nick Roberts and Alan Williams took a pay cut of 20% for a period of three months. The increase in 2021 reflects the reinstatement of this temporary reduction in salary. They received no underlying salary increase in 2021.
4 Jasmine Whitbread, Heath Drewett and Jora Gill were appointed during 2021, and therefore the higher fees received in 2023 reflect the comparison of a full year to a part year.
5 Geoff Drabble, Pete Redfern and Duncan Cooper were appointed during 2024, and therefore no prior year comparison is shown for these Directors. Pete Redfern stepped down from the Board and ceased employment on 10 March 2025.
6 Jez Maiden was appointed Interim Chair for part of 2024 and the increase in his fees for 2024 reflects that appointment.
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Relative importance of spend on pay
Capital expenditure is shown, for comparison, as an indicator of investment by the Group in future growth. It includes funds invested in the purchase of property, plant and equipment. Corporation tax is included as an indicator
of wider societal contribution facilitated by the Group’s operations and is the actual amount of corporation tax paid in the relevant reporting periods.
2024 2023
Distribution to shareholders 23 82
Capital expenditure 76 142
Corporation tax 21 41
Employee remuneration 640 665
Governance
During the year the Committee comprised Louise Hardy, Marianne Culver and Heath Drewett, all of whom are independent Non-executive Directors, and Jasmine Whitbread, Chair of the Board, and Jez Maiden, Interim Chair of
the Board, who were independent on appointment.
Deloitte was appointed by the Committee in December 2015, following an interview process, to provide independent advice on executive remuneration. Deloitte are founding members of the Remuneration Consultants Code of
Conduct and adhere to this Code in its dealings with the Committee. The Committee is satisfied that the advice provided by Deloitte is objective and independent. The Committee is comfortable that the Deloitte engagement
partner and team that provides remuneration advice to the Committee do not have connections with the Group or its Directors that may impair their independence. The Committee reviewed the potential for conflicts of interest
and judged that there were appropriate safeguards against such conflicts.
Deloitte provided additional services to the Group in relation to remuneration including support in developing and implementing remuneration proposals, compensation benchmarking and other tax and consulting services. Fees
are charged on a time and materials basis. During the year Deloitte was paid £74,400 for advice provided to the Committee. For the 2025 financial year Deloitte was appointed as the Group’s external auditors. Deloitte therefore
stepped down as advisers to the Committee on 31 December 2024. Korn Ferry has subsequently been appointed as the new advisers to the Committee.
In addition Pete Redfern, Nick Roberts, Duncan Cooper, Alan Williams, Robin Miller, Emma Rose (Chief Human Resources Officer), Jane Davies (Chief Human Resources Officer) and Leonie Clarke (Group Reward Director) have
assisted the Committee in its work and attended Committee meetings where appropriate. No individual is involved in the setting of their own remuneration.
Responsibilities
The Remuneration Committee is responsible for developing and implementing the remuneration policy within the Group. It determines and agrees with the Board the policy for the remuneration and benefits of the Chair,
Executive Directors and Group Leadership Team members and other senior executives. The Committee also oversees the administration of the Group’s share plans. The Committee’s terms of reference are available on the
Travis Perkins plc website (www.travisperkinsplc.co.uk) or on request from the Company Secretary.
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DIRECTORS’ REMUNERATION REPORT CONTINUED
Key items discussed in 2024 meetings
The Remuneration Committee held three routinely scheduled meetings during the year, with four additional meetings. The Remuneration Committee discussed the following matters:
Date Key issues considered
25 January
• Approval of annual salary review for Executive Directors and the Group Leadership Team
• Review of annual bonus design and targets for 2024
• Review of interim RSP awards for key talent below the Group Leadership Team
26 February
• Approval of remuneration policy ahead of 2024 AGM
• Approval of 2023 Directors’ remuneration report
• Approval of recruitment award for the Chief Financial Officer
• Approval of annual bonus targets for 2024
• Approval of outturn of 2023 annual bonus scheme and 2024 deferred share bonus plan awards
• Approval of vesting of 2021 long-term incentive awards (RSP)
• Approval of grant of 2024 RSP awards, including consideration of windfall gains
• Review of shareholding vs requirement for the Group Leadership Team
26 April
• Approval of remuneration for a member of the Group Leadership Team
14 May
• Approval of remuneration for a member of the Group Leadership Team
16 September
• Review of outstanding RSP awards made in 2022, 2023 and 2024
• Approval of RSP leaver treatment for a senior leader (below the Group Leadership Team)
25 October
• Review vesting outlook for outstanding RSP awards
12 December
• Review of annual bonus design for 2025
• Review of long-term incentives
• Review of 2024 Directors’ remuneration report
• Context and considerations for the 2025 annual salary review for the wider workforce
• Performance update on the 2024 annual bonus scheme
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Shareholder voting
The following resolutions in relation to remuneration were put to the Group’s AGM (2023 Directors’ remuneration report and 2023 Policy):
Resolution Votes for For (%) Votes against Against (%) Votes withheld
To receive and approve the 2023 Directors’ remuneration report (2024 AGM) 136,424,127 82.12% 29,703,631 17.88% 4,192
To receive and approve the Directors’ remuneration policy (2024 AGM) 131,336,551 79.06% 34,790,676 20.94% 4,723
The Directors’ Remuneration report has been approved by the Board of Directors and is signed on its behalf by:
Louise Hardy
Chair of the Remuneration Committee
31 March 2025
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Travis Perkins plc Annual Report and Accounts 2024
DIRECTORS’ REPORT
The Directors present their annual
report and audited accounts of Travis
Perkins plc and its subsidiaries
(the “Group”) for the year ended
31 December 2024. The report
sets out information required to be
included by the Companies Act
2006 (the “Act”), and the applicable
Financial Conduct Authority (“FCA”)
UK Listing Rules (UKLR 6.6) and
Disclosure Guidance and Transparency
Rules (the “DTR”). Certain information
is incorporated into this report by
reference and can be located in the
sections outlined below.
Disclosure Page
Corporate Governance report 74-77
Directors’ details 72-73
Directors’ interests 90-117
Future business developments 10-20
Greenhouse gas emissions 15
Climate change risk management
and governance 48-56
Principal risks and uncertainties 59-69
Financial risk management 24-25
Employee engagement 41
Employee share plans 169-170
Long-term incentive schemes 90-117
Dividend waivers 157
Number of employees and related costs 168
Business review
A review of the Group’s position, developments,
activities in the field of research and development
and a review of the key events affecting the Group in
the last financial year can be found on pages 2 to 70
and is also incorporated into this report by reference.
The Group operates predominantly in the UK with
Toolstation branches also trading in Belgium and The
Netherlands. The Group also has a sourcing office
in China and a branch in the Republic of Ireland.
During 2024 the Group also had 51 Toolstation
stores in France, all of which were either sold or
closed in the year.
Articles of Association
The Company’s Articles of Association (the
“Articles”) may only be amended by special
resolution at a general meeting of the Shareholders.
The Articles can be viewed on the Group’s
website at: www.travisperkinsplc.co.uk/about-us/
governance/.
Board of Directors
The names, biographies and committee
memberships of all Directors as at the date of this
Annual Report are provided in the biographies on
pages 72 to 73 and details of the Directors that held
office during the 2024 financial year are set out
within the Corporate governance report in the table
on page 76. The powers and responsibilities of the
Directors are set out in the Corporate governance
report on page 75. The appointment and removal
of Directors is regulated by the Articles, the Act,
the UK Corporate Governance Code (the “Code”)
and related legislation. Under Article 83 of the
Articles all Directors are required to retire and seek
re-election annually and accordingly all will do so
at the Annual General Meeting. All Directors as at
the date of the Annual report and Accounts are
recommended for re-election on the basis of their
skills, experience and the value of their contributions
to the Board and the Company’s long-term
sustainable success.
Details of the service agreements for Executive
Directors and letters of appointment for Non-
executive Directors and the Chair of the Board are
set out in the Director’s remuneration report on
pages 90 to 117 and are available for inspection at
the Company’s registered office. Executive Directors
have rolling 12-month notice periods in their
contracts.
Directors’ conflicts of interest
Directors have a statutory duty to avoid a situation
where they have or may have a direct or indirect
interest that conflicts or may conflict with the
Company’s interests. The Articles permit Directors
to authorise a potential conflict of interest to
the extent permitted by law. During the year, no
Director had any material interest in any contract
of significance of the Group’s business. The
disclosable interests of Directors at 31 December
2024, including holdings, if any, of persons
closely associated are provided in the Director’s
remuneration report on pages 90 to 117.
Directors’ indemnities
Article 143 of the Articles permits the Company
to indemnify any person who is or was a Director,
or a Director of any associated company against
any loss or liability in relation to the Company or
associated company, to the extent permitted by law.
The Company has granted such indemnities to its
Directors and directors of associated companies
and these remain in force in the year ending 31
December 2024. The Company maintains Directors’
and Officers’ liability insurance cover in respect of
potential legal action brought against its Directors
and directors of associated companies.
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Major shareholdings
Information received by the Company pursuant to DTR 5.3.1(1) is published on a Regulatory Information
Service and the Company’s website. As at 31 December 2024, the Company has received notification of the
following holdings of voting rights in its shares (based on the most recent notification received in the case of
multiple notifications). The information provided below was correct at the date of notification, however that date
of notification may not have been during 2024. These holdings are likely to have changed since the Company
was notified, however further notification is not required until the next notifiable threshold is crossed.
Direct/Indirect
Number of voting
rights held Voting Rights (%)
Pzena Investment Management, Inc Indirect 15,587,458 6.9%
Ameriprise Financial, Inc Indirect 11,121,830 5.2%
Schroders Plc Indirect 11,136,777 5.2%
BlackRock, Inc. Indirect 11,133,331 5.2%
Sprucegrove Investment Management Ltd Indirect 10,664,077 5.0%
Artemis Investment Management LLP Direct/Indirect 10,751,952 4.6%
Pursuant to UKLR 6.6.6R(2), the Company confirms that between 31 December 2024 and 17 March 2025
there have been no further disclosures made to the Company in accordance with DTR 5.
Results and dividend
The Group’s results for the year ending 31 December 2024 are set out in the income statement on page 131
and dividends for the year ending 31 December 2024 are set out in note 21. The Directors recommend a
final dividend of 9.0 pence per share for approval at the Company’s Annual General Meeting. If approved
by shareholders, the final dividend will be paid on 29 May 2025 to those shareholders on the register at the
close of business on 22 April 2025.
Balance sheet and post-balance sheet events
The balance sheet on page 133 shows the Group’s financial position.
Employees
A full statement on employee matters can be found in the Sustainability report on pages 36 to 42 and
an overview of the Company’s approach to diversity can be found in the Sustainability report and the
Nominations Committee report on pages 38 and 81. The Group’s Encouraging Equal Treatment Policy
aims to ensure recruitment, employment and promotion decisions are based solely on an individual’s
ability and potential, regardless of their gender, race, colour, ethnic origin, sexual orientation, religious belief,
age, disability, marital status (including civil partnership), pregnancy, maternity or gender reassignment. In
particular, applications for employment by disabled persons are always fully and fairly considered, bearing
in mind the aptitudes of the person concerned. In the event of a member of staff becoming disabled, every
effort is made to ensure that their employment with the Group continues, including making any reasonable
adjustments to their role, and that appropriate training is arranged. It is the policy of the Company that the
training, career development and promotion of disabled persons should, as far as possible, be identical to
that of other employees.
The Group’s practices are designed to keep employees informed on matters relevant to them, including
the Group’s financial performance and strategy, through regular meetings and communications. In October
2024 the Group conducted its latest “Your Voice Our Future” colleague engagement survey to enable
colleagues to give feedback on issues affecting them. Your Voice Our Future provides valuable insight
into colleague priorities and concerns. Areas for improvement are identified and action plans to improve
are developed with colleagues and implemented accordingly. The results of the survey are used to inform
the Group’s approach to policies, the working environment, working practices and diversity and inclusion,
amongst other matters. The Company has a designated workforce engagement Non-executive Director,
Louise Hardy, to bring the colleague voice into the Boardroom. The majority of colleagues with more than
three months consecutive service are eligible to join the Group’s Sharesave scheme, enabling them to
benefit from the Group’s growth and success. Full details of employee share plans are available in the
Directors’ remuneration report on pages 90 to 117.
Modern slavery
The Group recognises the harmful impact that Modern Slavery and human trafficking has on society and is
committed to ensuring its business and supply chain is free from this criminal activity. The Group produces
a slavery and human trafficking statement each financial year. The latest statement can be found on the
Company’s website at: www.travisperkinsplc.co.uk/modern-slavery-statement/.
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DIRECTORS’ REPORT CONTINUED
Political donations
The Group’s policy is not to make donations to political parties. The Group did not give any money for
political purposes nor did it make any donations to political organisations or independent candidates or
incur any political expenditure during the year.
Statement on disclosure of information to the external auditor
Each of the persons who is a Director at the date of approval of this report confirms that:
• so far as the Director is aware, there is no relevant audit information of which the Company’s auditor is
unaware; and
• the Director has taken all reasonable steps that they ought to have taken as a Director in order to make
themselves aware of any relevant audit information and to establish that the Company’s auditor is aware
of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Act.
Share capital and change of control
As at 31 December 2024 the Company had an allotted and fully paid share capital of 212,509,334 ordinary
shares of 11.205105 pence each with voting rights and an aggregate nominal value of £23,811,894.01,
including shares owned by the Travis Perkins Employee Share Ownership Trust. The ordinary shares are
listed on the London Stock Exchange and all shares rank pari passu. As at 31 December 2024, there were no
ordinary shares of the Company held in treasury. There are no restrictions on voting rights attached to the
Company’s ordinary shares. The Company is not aware of any agreements between holders of securities
that may result in restrictions on the transfer of securities or on voting rights. The rights and obligations
attaching to its shares are set out in the Articles. Fully paid shares in the Company are freely transferable.
There are no persons that hold securities carrying special rights with regard to the control of the Company.
Details of the structure of the Company’s share capital and changes in the share capital during the year
are also included in the notes to the financial statements on page 156. As at 31 December 2024 the Travis
Perkins Employee Share Ownership Trust owned 1,192,183 shares in the Company (0.56% of issued share
capital) for use in connection with the Company’s share schemes. Any voting or other similar decisions
relating to those shares would be taken by the trustees, who may take account of any recommendation of
the Company. There are no rights attached to shares under employee share schemes, save for the right to
acquire shares pursuant to options granted under those schemes in accordance with and subject to their
rules. There are a number of agreements to which the Company is a party that may take effect, alter or
terminate upon a change of control following a takeover bid. None of these agreements are considered
significant in the context of the Company as a whole. The Company does not have agreements with any
Director or any employee that would provide compensation for loss of office or employment resulting from
a takeover except for that provisions of the Company’s share schemes and plans may cause options and
awards granted to employees under such schemes and plans to vest on a takeover.
The Directors’ Report has been approved by the Board of Directors and is signed on its behalf by:
Robin Miller
General Counsel & Company Secretary
31 March 2025
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DIRECTORS’ STATEMENT OF RESPONSIBILITIES
The Directors are responsible for preparing the Annual Report and the Group and Parent Company financial
statements in accordance with applicable law and regulations. Company law requires the Directors to prepare
Group and Parent Company financial statements for each financial year. Under that law they are required to
prepare the Group financial statements in accordance with UK-adopted international accounting standards and
applicable law and have elected to prepare the Parent Company financial statements in accordance with UK
accounting standards and applicable law, including FRS 101 Reduced Disclosure Framework. Under company
law, the Directors must not approve the financial statements unless they are satisfied that they give a true
and fair view of the state of affairs of the Group and Parent Company and of the Group’s profit or loss for that
period. In preparing each of the Group and Parent Company financial statements, the Directors are required to:
• Select suitable accounting policies and then apply them consistently.
• Make judgements and estimates that are reasonable, relevant, and reliable and, in respect of the Parent
Company financial statements only, prudent.
• For the Group financial statements, state whether they have been prepared in accordance with UK-adopted
international accounting standards.
• For the Parent Company financial statements, state whether applicable UK accounting standards have been
followed, subject to any material departures disclosed and explained in the Parent Company financial
statements.
• Assess the Group and Parent Company’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern.
• Use the going concern basis of accounting unless they either intend to liquidate the Group or the Parent
Company or to cease operations, or have no realistic alternative but to do so.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and
explain the Parent Company’s transactions and disclose with reasonable accuracy at any time the financial
position of the Parent Company and enable them to ensure that its financial statements comply with the
Companies Act 2006. They are responsible for such internal control as they determine is necessary to
enable the preparation of financial statements that are free from material misstatement, whether due to
fraud or error and have general responsibility for taking such steps as are reasonably open to them to
safeguard the assets of the Group and to prevent and detect fraud and other irregularities.
Under applicable law and regulations, the Directors are also responsible for preparing a Strategic report,
Directors’ report, Directors’ remuneration report and Corporate governance statement that complies with
that law and those regulations.
The Directors are responsible for the maintenance and integrity of the corporate and financial information
included on the Company’s website. Legislation in the UK governing the preparation and dissemination of
financial statements may differ from legislation in other jurisdictions.
In accordance with Disclosure Guidance and Transparency Rule (“DTR”) 4.1.14R, the financial statements
will form part of the Annual financial report prepared under DTR 4.1.17R and 4.1.18R. The auditor’s report
on these financial statements provides no assurance over whether the annual financial report has been
prepared in accordance with those requirements.
Responsibility statement of the Directors in respect of the annual financial report
We confirm that to the best of our knowledge:
• The financial statements, prepared in accordance with the applicable set of accounting standards, give a true
and fair view of the assets, liabilities, financial position and profit or loss of the Company and the
undertakings included in the consolidation taken as a whole.
• The Strategic report includes a fair review of the development and performance of the business and the
position of the issuer and the undertakings included in the consolidation taken as a whole, together with a
description of the principal risks and uncertainties that they face.
We consider the Annual Report and Accounts, taken as a whole, is fair, balanced and understandable and
provides the information necessary for shareholders to assess the Group’s position and performance,
business model and strategy.
The Statement of Directors’ responsibilities has been approved by the Board and is signed on its behalf by:
Geoff Drabble Duncan Cooper
Chair Chief Financial Officer
31 March 2025 31 March 2025
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FINANCIAL STATEMENTS
Contents
123 Independent Auditor’s report
131 Consolidated income statement
132 Consolidated statement of comprehensive income
133 Consolidated balance sheet
134 Consolidated statement of changes in equity
135 Consolidated cash flow statement
136 Notes to the consolidated financial statements
172 Company balance sheet
173 Company statement of changes in equity
174 Notes to the Company’s financial statements
181 Five-year summary
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INDEPENDENT AUDITOR’S REPORT
to the members of Travis Perkins plc
1. Our opinion is unmodified
We have audited the financial statements of Travis Perkins plc (“the Company”) for the year ended
31 December 2024 which comprise the Consolidated Income Statement, the Consolidated Statement of
Comprehensive Income, the Consolidated and Company Balance Sheets, the Consolidated and Company
Statements of Changes in Equity, the Consolidated Cash Flow Statement, and the related notes, including
the accounting policies included within the respective note to the financial statements.
In our opinion:
• the financial statements give a true and fair view of the state of the Group’s and of the Parent Company’s
affairs as at 31 December 2024 and of the Group’s loss for the year then ended;
• the Group financial statements have been properly prepared in accordance with UK-adopted international
accounting standards;
• the Parent Company financial statements have been properly prepared in accordance with UK accounting
standards, including FRS 101 Reduced Disclosure Framework; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and
applicable law. Our responsibilities are described below. We believe that the audit evidence we have obtained
is a sufficient and appropriate basis for our opinion. Our audit opinion is consistent with our report to the
Audit Committee.
We were first appointed as auditor by the shareholders on 28 May 2015. The period of total uninterrupted
engagement is for the ten financial years ended 31 December 2024. We have fulfilled our ethical
responsibilities under, and we remain independent of the Group in accordance with, UK ethical requirements
including the FRC Ethical Standard as applied to listed public interest entities. No non-audit services
prohibited by that standard were provided.
Overview
Materiality:
Group financial
statements as a whole
£9.5m (2023: £10.0m)
4.8% (2023: 4.4%) of adjusted normalised Group profit before tax from
continuing operations
Key audit matters vs 2023
Recurring risks Accounting for inventory
Parent Company’s key audit matter: Recoverability of parent
Company’s investment in Travis Perkins Group Holdings Limited
New risks Recoverability of goodwill in respect of the Travis Perkins
General Merchant (TPGM) and Toolstation Benelux groups
of cash generating units
General ledger migration
2. Key audit matters: our assessment of risks of material misstatement
Key audit matters are those matters that, in our professional judgement, were of most significance in the
audit of the financial statements and include the most significant assessed risks of material misstatement
(whether or not due to fraud) identified by us, including those which had the greatest effect on: the overall
audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team.
We summarise below the key audit matters, in decreasing order of audit significance, in arriving at our audit
opinion above, together with our key audit procedures to address those matters and, as required for public
interest entities, our results from those procedures. These matters were addressed, and our results are
based on procedures undertaken, in the context of, and solely for the purpose of, our audit of the financial
statements as a whole, and in forming our opinion thereon, and consequently are incidental to that opinion,
and we do not provide a separate opinion on these matters.
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INDEPENDENT AUDITOR’S REPORT CONTINUED
to the members of Travis Perkins plc
The risk Our response
General ledger
migration
(Included within trade
and other payables of
£836 million)
Refer to page 84 (Audit
Committee report).
Data processing
On 1 July 2024, as part of the groups ongoing Finance Transformation programme certain
material components of the group migrated to a new ERP system. Following implementation
those businesses experienced a number of challenges associated with the processing of
transactions through the system. This primarily impacted the processing of supplier invoices
in a timely manner. These issues increase the risk of errors in the completeness and accuracy
of the impacted accounts associated with the purchase to pay and related processes,
including the direct sales accrual.
We performed the tests below rather than seeking to rely on any of the Group’s controls because the inherent
nature of the challenges associated with the implementation of the new ERP system indicated that we would
expect to obtain audit evidence primarily through the detailed procedures described.
Our procedures included:
• Tests of detail: For a risk-based selection of suppliers we obtained reconciliations of the outstanding balance
as stated by the supplier to amounts recognised in the general ledger. We corroborated the accuracy of the
reconciling items on a sample basis by agreeing to supporting documentation.
We verified the accuracy of the year end cash position by obtaining independent confirmation of the balances.
We critically assessed the appropriateness of reconciling items and where relevant obtained supporting
documentation.
We performed a search for unrecorded liabilities test for a sample of items settled by the Group after the year
end to validate that they were appropriately accrued in the year end balance sheet.
Our results:
The results of our testing were satisfactory, and we found the supplier liabilities recognised to be acceptable.
Recoverability of
goodwill in respect
of the Travis Perkins
General Merchant
(TPGM) and
Toolstation Benelux
groups of cash
generating units
(£540 million;
2023: £542million)
Refer to page 86 (Audit
Committee report) and
page 165 (accounting
policy and financial
disclosures).
Forecast based assessment
The TPGM group of CGUs is at significant risk of impairment due to suppressed demand
arising from the challenging economic environment in the UK, including the impact of
sustained elevated interest rates and a reduction in the construction of new housing stock.
The estimated recoverable amount of TPGM is subjective due to the inherent uncertainty
involved in forecasting and discounting future cash flows. There is also a fraud risk as the
directors may be incentivised to overstate the forecast cashflows in order to avoid an
impairment given the significance of this CGU to the Group.
The recoverable amount is sensitive to changes in key assumptions, principally relating to
revenue growth, operating profit margin and discount rates. Changes to these key
assumptions could have a material impact on the carrying value of the associated goodwill.
The Toolstation Benelux group of CGUs is an immature business and during 2024 was
subject to a change in strategy to focus on short term profitability rather than long term
growth. The estimated recoverable amount of Toolstation Benelux is subjective due to the
inherent uncertainty involved in forecasting and discounting future cash flows, particularly
in an immature business.
The recoverable amount is sensitive to changes in key assumptions, principally relating to
revenue growth, and discount rates. Changes to these key assumptions could have a
material impact on the carrying value of the associated goodwill.
The effect of these matters is that, as part of our risk assessment, we determined that the
recoverability of the TPGM and Toolstation Benelux goodwill has a high degree of
estimation uncertainty, with a potential range of reasonable outcomes greater than our
materiality for the financial statements as a whole, and possibly many times that amount.
The financial statements (note 29) disclose the sensitivity estimated by the Group.
We performed the tests below rather than seeking to rely on any of the Group’s controls because the nature of the
balance is such that we would expect to obtain audit evidence primarily through the detailed procedures described.
Our procedures included:
• Assessing methodology: We assessed whether the principles and integrity of the cash flow models used to
estimate the recoverable amounts is in accordance with the relevant accounting standards;
• Sensitivity analysis: We performed sensitivity analysis using reasonably possible downside scenarios on the
key assumptions , being those that were most sensitive to a change and assessed the impact on recoverable
amount;
• Challenging assumptions: We challenged the key assumptions for each group of CGUs by benchmarking to
third party sources;
• Our valuation experience: We independently determined an appropriate range of discount rates to be applied
to the impairment model using our own valuation specialists;
• Historical comparisons: We evaluated the track record of historical assumptions used against actual results
achieved; and
• Assessing transparency: We assessed whether the Group’s disclosures about the sensitivity of the outcome
of the impairment assessments to a reasonably possible change in key assumptions reflected the risks
inherent in the recoverable amount of goodwill.
Our results:
We found the Group’s conclusion that there is no impairment of the goodwill related to TPGM and Toolstation
Benelux to be acceptable (2023: acceptable).
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The risk Our response
Accounting for
inventory
(£649 million;
2023: £728 million)
Refer to page 84 (Audit
Committee report) and
page 148 (accounting
policy and financial
disclosures).
Accounting for inventory (quantities and cost)
The Group holds a significant amount of inventory across its large branch network and a
number of warehouses. The Group’s inventory is comprised of a very large number of
products, typically held in large quantities, with high inventory turnover. The Group conducts
periodic inventory counts and updates its inventory records to reflect the results of the
counts. Cost is based on a weighted average purchase price. Whilst inventory is not
considered to represent a significant risk of material misstatement, it is one of the matters
that has the greatest effect on our overall audit strategy; the allocation of resources in the
audit; and directing the efforts of the engagement team in order to conclude.
We performed the detailed tests below rather than seeking to rely on any of the Group’s controls because our
knowledge of the design and implementation of these controls indicated that we would not be able to obtain the
required evidence to support reliance on controls.
Our procedures included:
• Tests of detail: We counted a sample of inventory lines across a sample of the Group’s branches and
warehouses and compared the results of our counts to the Group’s inventory records. Where our counts were
performed prior to or just after the year-end date, we obtained evidence for any significant movements in
inventory quantities to the year-end date.
We evaluated the results of our count procedures using statistical routines.
• Independent reperformance: We recalculated the net purchase prices attributed to a sample of individual
inventory lines. This procedure included the use of a data and analytics procedure for certain inventory lines
and substantive tests of detail for others.
Our results:
We found the accounting for inventory to be acceptable (2023: acceptable).
Recoverability of
Parent Company’s
investment in Travis
Perkins Group
Holdings Limited
(£2,417 million;
2023: £1,922 million)
Refer to page 175
(accounting policy and
financial disclosures).
Low risk, high value
The parent company holds an investment in Travis Perkins Group Holdings Limited which
in turn owns a significant majority of the Group’s trading businesses. This balance
represents 99.8% (2023: 99.8%) of the parent Company’s total assets.
The recoverability of the investment is not at a high risk of material misstatement or
subject to significant judgement. However, due to its materiality in the context of the parent
Company financial statements, this is considered to be the area that had the greatest effect
on our overall parent Company audit.
We performed the tests below rather than seeking to rely on any of the Group’s controls because the nature of the
balance is such that we would expect to obtain audit evidence primarily through the detailed procedures described.
Our procedures included:
• Comparing valuations: Comparing the sum of the recoverable amounts prepared for the purposes of
goodwill impairment testing to the carrying value of the investment to assess the recoverability;
• Comparing valuations: Comparing the enterprise value of the group implied by the market capitalisation to
the carrying value of the investment to assess the recoverability and considered the possible explanations for
the difference; and
• Comparing valuations: We compared the share price implied by the carrying value of the investment to the
forward looking share price forecasts in stock market analyst reports.
Our results:
We found the parent Company’s conclusion that there is no impairment of its investment in subsidiaries to be
acceptable (2023: acceptable)
We continue to perform procedures over gross defined benefit obligations. However, following changes in our overall assessment of the audit risks, we have not assessed this as one of the areas of most significance to our
current year audit and, therefore, it is not separately identified in our report this year.
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In total, we identified 6 components, having considered our evaluation of the existence of common risk profile
across entities, the presence of key audit matters and our ability to perform audit procedures centrally.
Of those, we identified 5 quantitatively significant components which contained the largest percentages of
either total revenue or total assets of the Group, for which we performed audit procedures.
Additionally, having considered qualitative and quantitative factors, we selected 1 component with accounts
contributing to the specific RMMs of the Group financial statements.
Accordingly, we performed audit procedures on 6 components, of which we involved component auditors in
performing the audit work on 2 components.
We performed audit procedures on the items excluded from the normalised Group profit before tax used as
the benchmark for our materiality.
We set the component materialities, ranging from £4.8m to £7.6m, having regard to the mix of size and risk
profile of the Group across the components.
Our audit procedures covered 95% of Group revenue. We performed audit procedures in relation to
components that accounted for 97% of Group profit before tax and 94% of Group total assets.
For the remaining components for which we performed no audit procedures, no component represented
more than 2.7% of Group total revenue, Group profit before tax or Group total assets. We performed analysis
at an aggregated Group level to re-examine our assessment that there is not a reasonable possibility of a
material misstatement in these components.
Impact of controls on our group audit
We identified the main Enterprise Resource Planning (‘ERP’) finance systems as the key IT systems relevant
to our Group audit.
The Group has operated four ERP systems during the course of the current year across the in-scope
components of the Group, which are managed from a centralised IT function primarily in the UK. With the
assistance of our IT auditors, we obtained an understanding of these IT systems.
INDEPENDENT AUDITOR’S REPORT CONTINUED
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3. Our application of materiality and an overview of the scope of our audit
Our application of materiality
Materiality for the Group financial statements as a whole was set at £9.5m (2023: £10.0m), determined with
reference to a benchmark of adjusted normalised Group profit before tax from continuing operations (2023:
adjusted normalised Group profit before tax from continuing operations) of £194m (2023: £229m) of which it
represents 4.8% (2023: 4.4%). In 2024 we normalised the benchmark by adding back adjusting items that do
not represent the normal, continuing operations of the Group, and by averaging the benchmark over 4 years.
The items we adjusted for were Administrative expenses- adjusting items disclosed in note 3. We selected 4
years to average the benchmark to account for the fluctuations in the business Group’s performance driven by
temporary macro economic factors that have had impact on the overall profitability of the Group.
Materiality for the parent Company financial statements as a whole was set at £7.6m (2023: £8.0m),
determined with reference to a benchmark of the Parent Company total assets, of which it represents 0.3%
(2023: 0.3%).
In line with our audit methodology, our procedures on individual account balances and disclosures were
performed to a lower threshold, performance materiality, so as to reduce to an acceptable level the risk that
individually immaterial misstatements in individual account balances add up to a material amount across the
financial statements as a whole.
Performance materiality was set at 65% (2023: 65%) of materiality for the financial statements as a whole,
which equates to £6.2m (2023: £6.5m) for the Group and £4.9m (2023: £5.2m) for the parent Company.
We applied this percentage in our determination of performance materiality based on the level of identified
misstatements in prior periods and our knowledge of the Group’s control environment.
We agreed to report to the Audit Committee any corrected or uncorrected identified misstatements
exceeding £0.5m (2023: £0.4m), in addition to other identified misstatements that warranted reporting on
qualitative grounds.
Overview of the scope of our audit
This year, we applied the revised group auditing standard in our audit of the consolidated financial
statements. The revised standard changes how an auditor approaches the identification of components, and
how the audit procedures are planned and executed across components.
In particular, the definition of a component has changed, shifting the focus from how the entity prepares
financial information to how we, as the group auditor, plan to perform audit procedures to address group
risks of material misstatement (“RMMs”). Similarly, the group auditor has an increased role in designing the
audit procedures as well as making decisions on where these procedures are performed (centrally and/or at
component level) and how these procedures are executed and supervised. As a result, we assess scoping
and coverage in a different way and comparisons to prior period coverage figures are not meaningful. In this
report we provide an indication of scope coverage on the new basis.
We performed risk assessment procedures to determine which of the Group’s components are likely to
include risks of material misstatement to the Group financial statements and which procedures to perform
at these components to address those risks.
Normalised Group profit before tax
£194m (2023: £229m)
Group materiality
£9.5m (2023: £10.0m)
£9.5m
Whole financial statements
materiality (2023: £10.0m)
£6.2m
Whole financial statements performance
materiality (2023: £6.5m)
£7. 6 m
Range of materiality at 6 components
(£4.8m-£7.6m) (2023: £1.8m to £8.0m)
£0.5m
Misstatements reported to the audit
committee 2023: £0.4m
Normalised PBT
Group materiality
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The ERP that accounts for the majority of the Group’s transactions has transitioned from a legacy ERP to a
new ERP in the current year as referenced in page 87 of the Audit Committee report. Due to the timing of
the transition in the current year and the implementation challenges faced with processing transactions, we
did not plan to rely on IT controls for the legacy and new ERP system. Our key audit matter in section 2 on
general ledger migration explains the work we performed in response to the implementation challenges.
In addition to the primary ERP, the Group has two further ERPs that are used by smaller components where
we performed audit procedures in our Group audit. Due to the relative size of these components, we deemed
a fully substantive approach was most efficient and effective for gaining the appropriate audit evidence for
in-scope components using these systems.
For most areas of the audit, given we did not rely on the related IT controls, we took a predominantly
substantive audit approach and accordingly increased the extent of our substantive procedures. We
considered this to be the most efficient and effective for gaining the appropriate audit evidence. We adopted
a data-oriented approach to testing journals and used data and analytical routines to test revenue across a
majority of components and inventory costing in some components.
We planned to rely on the operating effectiveness of manual controls over certain data inputs used in
our revenue audit routines, but we were unable to due to certain deficiencies being identified. As a result,
and given we did not rely on the related IT controls, a manual testing approach was performe dover the
completeness and accuracy of data used in these routines and in respect of system data used in our
substantive testing on other transactional areas. Refer to our key audit matter in section 2 in relation to
inventory and the impact of controls on our approach.
Our audit procedures covered
the following percentage of
Group revenue:
We performed audit procedures in relation to components
that accounted for the following percentages of
Group profit before tax and Group total assets:
Group revenue
95%
95
Group total assets
94%
94
Group profit before tax
97%
97
Group auditor oversight
As part of establishing the overall Group audit strategy and plan, we conducted the risk assessment
and planning discussion meetings with component auditors to discuss Group audit risks relevant to the
components including the key audit matter in respect of accounting for inventory with a particular focus on
stock costing and branch inventory accounts.
We issued Group audit instructions to component auditors on the scope and nature of their work, including
specifying the minimum procedures to perform in their audit of inventory, pensions, cash and purchases.
All in scope components are based in the UK. We have held in- person, video and telephone conference
meetings with the component auditors throughout the audit to discuss the results of planning procedures
and further audit procedures.
We inspected the work performed by the component auditors for the purpose of the Group audit and evaluated
the appropriateness of conclusions drawn from the audit evidence obtained and consistencies between
communicated findings and work performed with a particular focus on stock costing and branch inventory counts.
4. The impact of climate change on our audit
We have considered the potential impacts of climate change on the financial statements as part of planning
our audit.
As the Group has set out on page 46, climate change has the potential to significantly impact the
construction sector during the transition to a low carbon environment. The Group has stated their
commitment to help the industry to decarbonise and has set out its own commitments to reduce carbon.
The areas of financial statements that are most likely to be potentially affected by climate related changes and
initiatives are balances subject to forward looking assessments such as those subject to impairment tests and those
being depreciated or amortised over an estimated useful life of assets. The Group considered the impact of climate
change and the Group’s targets in the preparation of the financial statements, as described on page 146 in relation to
the estimated useful economic life of property, plant and equipment and 165 in relation to impairment.
We performed a risk assessment, taking into account climate change risks and the commitments made
by the Group. This included enquiries of key personnel and those charged with governance, consideration
of the Group’s processes for assessing the potential impact of climate change risk on the Group’s financial
statements, assessing the TCFD scenario analysis performed by the Group and reading the Group’s Carbon
Disclosure Project submission.
Based on our risk assessment we determined that, taking into account the extent of headroom on goodwill
and the nature and estimated useful economic life of property, plant and equipment, there are no significant
risks of material misstatement in relation to climate change.
There was limited impact of climate change on our key audit matters included in section 2.
We have read the Group’s disclosure of climate related information in the front half of the annual report as set
out on pages 43 to 58 and considered consistency with the financial statements and our audit knowledge.
5. Going concern
The directors have prepared the financial statements on the going concern basis as they do not intend to
liquidate the Group or the Company or to cease their operations, and as they have concluded that the Group’s
and the Company’s financial position means that this is realistic. They have also concluded that there are no
material uncertainties that could have cast significant doubt over their ability to continue as a going concern
for at least a year from the date of approval of the financial statements (“the going concern period”).
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5. Going concern continued
We used our knowledge of the Group, its industry, and the uncertain economic environment to identify the
inherent risks to the Group’s business model and analysed how those risks might affect the Group’s and
Parent Company’s financial resources or ability to continue operations over the going concern period. The
risk that we considered most likely to adversely affect the Group’s and parent Company’s available financial
resources and metrics relevant to debt covenants over this period was adverse macroeconomic conditions
resulting in lower than expected trading volumes.
We considered whether these risks could plausibly affect the liquidity or covenant compliance in the going
concern period by comparing severe, but plausible downside scenarios that could arise from these risks
individually and collectively against the level of available financial resources and covenants indicated by the
Group’s financial forecasts.
Our procedures also included:
• Evaluating how the Group’s risk assessment process identifies business risks relating to events and
conditions that may cast significant doubt on the ability to continue as a going concern and evaluating the
models the Group uses in its assessment.
• Critically assessing the assumptions in the base case and downside scenarios relevant to liquidity and
covenant metrics and the impacts of historical trends in severe economic situations and overlaying
knowledge of the entity’s plans based on approved budgets and our knowledge of the entity and the sector
in which it operates.
• Challenged the reasonableness of the Group’s budgets and forecasts and evaluated whether the growth
targets are within a reasonable range.
• We considered whether the going concern disclosure in the ‘General Information’ section in the notes to the
financial statements set out on page 136 gives a full and accurate description of the directors’ assessment of
going concern, including the identified risks and dependencies.
Our conclusions based on this work:
• we consider that the directors’ use of the going concern basis of accounting in the preparation of the financial
statements is appropriate;
• we have not identified, and concur with the directors’ assessment that there is not, a material uncertainty
related to events or conditions that, individually or collectively, may cast significant doubt on the Group’s or
Company’s ability to continue as a going concern for the going concern period;
• we have nothing material to add or draw attention to in relation to the directors’ statement in the ‘General
Information’ section on page 136 to the financial statements on the use of the going concern basis of
accounting with no material uncertainties that may cast significant doubt over the Group and Company’s use
of that basis for the going concern period, and we found the going concern disclosure in note 1 to be
acceptable; and
• the related statement under the UK Listing Rules set out on page 77 is materially consistent with the financial
statements and our audit knowledge.
However, as we cannot predict all future events or conditions and as subsequent events may result in
outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above
conclusions are not a guarantee that the Group or the Company will continue in operation.
6. Fraud and breaches of laws and regulations – ability to detect
Identifying and responding to risks of material misstatement due to fraud
To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that
could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud.
Our risk assessment procedures included:
• Enquiring of directors, the audit committee and internal audit and inspection of policy documentation as to
the Group’s high-level policies and procedures to prevent and detect fraud, including the internal audit
function, and the Group’s channel for “whistleblowing”, as well as whether they have knowledge of any
actual, suspected or alleged fraud.
• Reading Board, audit committee, remuneration committee and nomination committee minutes.
• Considering remuneration incentive schemes and performance targets for Directors.
• Our forensic specialists assisting us in identifying key fraud risks. This included holding a discussion with the
engagement partner and team and assisting with designing relevant audit procedures to respond to the
identified fraud risks.
• Using analytical procedures to identify any unusual or unexpected relationships.
We communicated identified fraud risks throughout the audit team and remained alert to any indications of
fraud throughout the audit. This included communication from the Group audit team to component audit teams
of relevant fraud risks identified at the Group level and request to component audit teams to report to the
Group audit team any instances of fraud that could give rise to a material misstatement at the Group level.
As required by auditing standards, and taking into account possible pressures, our overall knowledge of
the control environment, to meet profit targets, we perform procedures to address the risk of management
override of controls, in particular the risk that Group and component management may be in a position
to make inappropriate accounting entries. On this audit we do not believe there is a fraud risk related
to revenue recognition because sales are individually low value (high volume) across a high number of
independently managed branches and there is no judgement in applying the revenue recognition criteria.
We identified a fraud risk related to the recoverability of goodwill in response to the weak economic
environment within the construction sector and suppressed results of the business. Further detail is set out
in section 2.
We performed procedures including:
• Identifying journal entries and other adjustments to test for all quantitatively significant components based
on risk criteria and comparing the identified entries components to supporting documentation. These
included those posted to unusual accounts.
• Assessing whether the judgements made in making accounting estimates are indicative of a potential bias.
INDEPENDENT AUDITOR’S REPORT CONTINUED
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Identifying and responding to risks of material misstatement due to non-compliance with laws and
regulations
We identified areas of laws and regulations that could reasonably be expected to have a material effect on
the financial statements from our general commercial and sector experience through discussion with the
directors and other management (as required by auditing standards), and discussed with the directors and
other management the policies and procedures regarding compliance with laws and regulations. As the
Group is regulated, our assessment of risks involved gaining an understanding of the control environment
including the entity’s procedures for complying with regulatory requirements.
We communicated identified laws and regulations throughout our team and remained alert to any
indications of non-compliance throughout the audit. This included communication from the Group audit
team to component audit teams of relevant laws and regulations identified at the Group level, and a request
for component auditors to report to the Group audit team any instances of non-compliance with laws and
regulations that could give rise to a material misstatement at the Group level.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the Group is subject to laws and regulations that directly affect the financial statements including
financial reporting legislation (including related companies legislation), distributable profits legislation,
taxation legislation and pensions legislation and we assessed the extent of compliance with these laws and
regulations as part of our procedures on the related financial statement items.
Secondly, the Group is subject to many other laws and regulations where the consequences of non-
compliance could have a material effect on amounts or disclosures in the financial statements, for instance
through the imposition of fines or litigation. We identified the following areas as those most likely to have
such an effect: health and safety, anti-bribery, employment law, climate change, responsible sourcing and
import compliance. Auditing standards limit the required audit procedures to identify non-compliance with
these laws and regulations to enquiry of the directors and other management and inspection of regulatory
and legal correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or
evident from relevant correspondence, an audit will not detect that breach.
Context of the ability of the audit to detect fraud or breaches of law or regulation
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected
some material misstatements in the financial statements, even though we have properly planned and
performed our audit in accordance with auditing standards. For example, the further removed non-
compliance with laws and regulations is from the events and transactions reflected in the financial
statements, the less likely the inherently limited procedures required by auditing standards would identify it.
In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit
procedures are designed to detect material misstatement. We are not responsible for preventing non-
compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
7. We have nothing to report on the other information in the Annual Report
The directors are responsible for the other information presented in the Annual Report together with the financial
statements. Our opinion on the financial statements does not cover the other information and, accordingly, we do
not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether, based on our financial
statements audit work, the information therein is materially misstated or inconsistent with the financial
statements or our audit knowledge. Based solely on that work we have not identified material misstatements
in the other information.
Strategic report and directors’ report
Based solely on our work on the other information:
• we have not identified material misstatements in the strategic report and the directors’ report;
• in our opinion the information given in those reports for the financial year is consistent with the financial
statements; and
• in our opinion those reports have been prepared in accordance with the Companies Act 2006.
Directors’ remuneration report
In our opinion the part of the Directors’ Remuneration Report to be audited has been properly prepared in
accordance with the Companies Act 2006.
Disclosures of emerging and principal risks and longer-term viability
We are required to perform procedures to identify whether there is a material inconsistency between the
directors’ disclosures in respect of emerging and principal risks and the viability statement, and the financial
statements and our audit knowledge.
Based on those procedures, we have nothing material to add or draw attention to in relation to:
• the directors’ confirmation within the viability assessment on page 25 that they have carried out a robust
assessment of the emerging and principal risks facing the Group, including those that would threaten its
business model, future performance, solvency and liquidity;
• the Principal Risks disclosures describing these risks and how emerging risks are identified, and explaining
how they are being managed and mitigated; and
• the directors’ explanation in the viability assessment of how they have assessed the prospects of the Group,
over what period they have done so and why they considered that period to be appropriate, and their
statement as to whether they have a reasonable expectation that the Group will be able to continue in
operation and meet its liabilities as they fall due over the period of their assessment, including any related
disclosures drawing attention to any necessary qualifications or assumptions.
We are also required to review the viability assessment, set out on page 25 under the UK Listing Rules.
Based on the above procedures, we have concluded that the above disclosures are materially consistent with
the financial statements and our audit knowledge.
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INDEPENDENT AUDITOR’S REPORT CONTINUED
to the members of Travis Perkins plc
Our work is limited to assessing these matters in the context of only the knowledge acquired during our
financial statements audit. As we cannot predict all future events or conditions and as subsequent events
may result in outcomes that are inconsistent with judgements that were reasonable at the time they were
made, the absence of anything to report on these statements is not a guarantee as to the Group’s and
Company’s longer-term viability.
Corporate governance disclosures
We are required to perform procedures to identify whether there is a material inconsistency between the
directors’ corporate governance disclosures and the financial statements and our audit knowledge.
Based on those procedures, we have concluded that each of the following is materially consistent with the
financial statements and our audit knowledge:
• the directors’ statement that they consider that the annual report and financial statements taken as a whole
is fair, balanced and understandable, and provides the information necessary for shareholders to assess the
Group’s position and performance, business model and strategy;
• the section of the annual report describing the work of the Audit Committee, including the significant issues
that the audit committee considered in relation to the financial statements, and how these issues were
addressed; and
• the section of the annual report that describes the review of the effectiveness of the Group’s risk
management and internal control systems.
We are required to review the part of the Corporate Governance Statement relating to the Group’s
compliance with the provisions of the UK Corporate Governance Code specified by the UK Listing Rules for
our review. We have nothing to report in this respect.
8. We have nothing to report on the other matters on which we are required to report by exception
Under the Companies Act 2006, we are required to report to you if, in our opinion:
• adequate accounting records have not been kept by the parent Company, or returns adequate for our audit
have not been received from branches not visited by us; or
• the parent Company financial statements and the part of the Directors’ Remuneration Report to be audited
are not in agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
We have nothing to report in these respects.
9. Respective responsibilities
Directors’ responsibilities
As explained more fully in their statement set out on page 121, the directors are responsible for: the
preparation of the financial statements including being satisfied that they give a true and fair view; such
internal control as they determine is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error; assessing the Group and parent Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
using the going concern basis of accounting unless they either intend to liquidate the Group or the parent
Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s
report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted
in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of the financial statements.
A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/
auditorsresponsibilities.
The Company is required to include these financial statements in an annual financial report prepared under
Disclosure Guidance and Transparency Rule 4.1.17R and 4.1.18R. This auditor’s report provides no assurance
over whether the annual financial report has been prepared in accordance with those requirements.
10. The purpose of our audit work and to whom we owe our responsibilities
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16
of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s
members those matters we are required to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the
Company and the Company’s members, as a body, for our audit work, for this report, or for the opinions
we have formed.
James Tracey (Senior Statutory Auditor)
for and on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
One Snowhill
Snow Hill Queensway
Birmingham
B4 6GH
31 March 2025
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CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2024
2023
£m
Notes
2024
(re-presented
1
)
Revenue
1
4 , 6 0 7. 4
4 , 8 3 7.1
1, 203 .7
1, 298. 8
Charge for impairment losses for trade receivables
14
(16 . 7)
(1 6 . 8)
Selling and distribution
(7 7 9. 2)
(8 2 3 . 2)
Administrative expenses – other
(2 7 1 . 3)
(28 4 . 9)
Profit on disposal of properties
11.3
1 5 .1
Other operating income
4
4.0
9 .1
Adjusted operating profit
151 . 8
1 9 8 .1
Administrative expenses – adjusting items
3
(1 3 9 .1)
(2 6 . 9)
Administrative expenses – amortisation of acquired intangible
assets
(1 0. 4)
(1 0 . 5)
Operating profit
2
2.3
160.7
Finance income
6
1 1 .1
12 .1
Finance costs
6
(51 . 8)
(51 . 4)
(Loss)/profit before tax
(3 8 . 4)
121. 4
Tax
7
(2 . 2)
(31 . 9)
(Loss)/profit from continuing operations
(40.6)
89. 5
Loss from discontinuing operations
8
(3 6 . 8)
(51 . 4)
(Loss)/profit for the year
(7 7. 4)
3 8 .1
All (loss)/profit for the year is attributable to the owners of the Company.
Earnings per share (note 20):
2023
2024
(re-presented
1
)
Adjusted basic earnings
36 .6p
5 4.4p
Basic earnings
– from continuing operations
(1 9. 2)p
42. 5p
– total
(3 6 . 6)p
1 8 .1p
Diluted earnings
– from continuing operations
(1 9. 2)p
41 . 8p
– total
(3 6 . 6)p
1 7. 8p
1 Figures for the year ended 31 December 2023 have been re-presented to exclude the results of the Toolstation Europe France business, which is
now presented as a discontinued operation.
The accompanying notes form an integral part of these financial statements.
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2024
£m
Notes
2024
2023
(Loss)/profit for the year
(7 7. 4)
3 8 .1
Items that will not be reclassified subsequently to profit and loss:
Actuarial gain/(loss) on defined benefit pension schemes
18
3 5 .1
(41 . 0)
Deferred tax relating to other comprehensive income
7
(9.5)
10 . 2
Items that may be reclassified subsequently to profit and loss:
Foreign exchange differences on retranslation of foreign operations
(2 . 3)
(1 . 2)
Fair value gain/(loss) on cash flow hedges
27
0.4
(1 . 4)
Deferred tax on cash flow hedges
7
(0 .1)
0.4
Total other comprehensive profit/(loss) for the year net of tax
23.6
(3 3 . 0)
Total comprehensive (loss)/income for the year
(5 3 . 8)
5 .1
Total comprehensive (loss)/income for the year attributable to the owners of the Company arises from:
Continuing operations
(1 6 . 9)
5 7. 0
Discontinued operations
(3 6 . 9)
(51 . 9)
(5 3 . 8)
5 .1
All other comprehensive income is attributable to the owners of the Company.
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CONSOLIDATED BALANCE SHEET
As at 31 December 2024
£m
Notes
2024
2023
Assets
Non-current assets
Goodwill
9
82 1. 3
8 4 7. 9
Other intangible assets
9
86.9
99.9
Property, plant and equipment
10
7 71 .1
848.4
Right-of-use assets
11
54 5.4
530.4
Non-current prepayments
14
15.3
14. 2
Deferred tax asset
16
1 7. 5
18 .0
Derivative financial instruments
28
3.3
2.9
Retirement benefit asset
18
11 6.9
100.6
Total non-current assets
2 , 3 7 7. 7
2,4 62.3
Current assets
Inventories
12
64 8 .6
727 .6
Trade and other receivables
14
760.5
689.6
Tax debtor
–
14. 5
Cash and cash equivalents, excluding bank overdrafts
23
24 4.4
131 . 5
Total current assets
1,653 .5
1, 563. 2
Total assets
4,031.2
4, 025 . 5
Equity and liabilities
Capital and reserves
Issued share capital
23.8
23 .8
Share premium account
54 5.6
545.6
Cash flow hedge reserve
27
2 .5
2 .9
Merger reserve
326.5
326 . 5
Revaluation reserve
9.5
10.8
Own shares
(7. 2)
(1 4 .1)
Foreign exchange reserve
6 .1
8 .4
Capital redemption reserve
1.4
1.4
Retained earnings
1,065. 9
1, 1 35.0
Total equity
19
1 , 9 74 .1
2,040. 3
£m
Notes
2024
2023
Non-current liabilities
Interest-bearing loans and borrowings
22
42 1. 8
4 4 5 .1
Lease liabilities
11
56 0 .1
51 8 . 8
Deferred tax liabilities
16
68.3
92 . 8
Long-term provisions
15
21.6
3.8
Total non-current liabilities
1,0 71.8
1,060. 5
Current liabilities
Lease liabilities
11
94.5
89.6
Overdraft
22
13 . 2
–
Derivative financial instruments
28
–
0.4
Trade and other payables
17
838. 2
795.4
Short-term provisions
15
39.4
39 . 3
Total current liabilities
9 85.3
924 . 7
Total liabilities
2 , 0 5 7. 1
1,985.2
Total equity and liabilities
4,031.2
4, 025 . 5
The financial statements of Travis Perkins plc, registered number 824821, were approved by the Board of
Directors on 31 March 2025 and signed on its behalf by:
Geoff Drabble Duncan Cooper
Chair Director
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Travis Perkins plc Annual Report and Accounts 2024
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2024
£m
Foreign
Share Share Cash flow Merger Revaluation Own exchange Retained Total
capitalpremiumhedge reservereservereserveshares
reserve
Other
earningsequity
At 1 January 2023
23. 8
545 .6
4. 3
326. 5
12 .1
(3 4 . 3)
9.6
1 .4
1,2 1 3.2
2, 10 2.2
Profit for the year
–
–
–
–
–
–
–
–
3 8 .1
38 .1
Other comprehensive income for the year net of tax
–
–
(1 . 4)
–
–
–
(1 . 2)
–
(30.4)
(3 3 . 0)
Total comprehensive income for the year
–
–
(1 . 4)
–
–
–
(1 . 2)
–
7. 7
5 .1
Dividends paid
–
–
–
–
–
–
–
–
(82 .1)
(8 2 .1)
Adjustments in respect of revalued fixed assets net of tax
–
–
–
–
(1 . 3)
–
–
–
1.8
0.5
Own shares movement
–
–
–
–
–
20. 2
–
–
(2 0 . 2)
–
Equity-settled share-based payments net of tax
–
–
–
–
–
–
–
–
14. 6
14.6
At 1 January 2024
23. 8
545 .6
2.9
326. 5
10. 8
(1 4 .1)
8.4
1.4
1, 1 35.0
2,040. 3
Loss for the year
–
–
–
–
–
–
–
–
(7 7. 4)
( 7 7. 4)
Other comprehensive income for the year net of tax
–
–
0. 3
–
–
–
(2 . 3)
–
25.6
23.6
Total comprehensive loss for the year
–
–
0.3
–
–
–
(2 . 3)
–
(51 . 8)
(5 3 . 8)
Dividends paid
–
–
–
–
–
–
–
–
(2 3 . 2)
(2 3 . 2)
Adjustments in respect of revalued fixed assets net of tax
–
–
–
–
(1 . 3)
–
–
–
1.5
0. 2
Sale of own shares
–
–
–
–
–
0 .1
–
–
–
0 .1
Own shares movement
–
–
–
–
–
6.8
–
–
(6 . 8)
–
Exercise of options over non-controlling interest
–
–
–
–
–
–
–
–
(1 . 2)
(1 . 2)
Equity-settled share-based payments net of tax
–
–
–
–
–
–
–
–
11.7
11 .7
Reclassification
–
–
(0. 7)
–
–
–
–
–
0.7
–
At 31 December 2024
23.8
54 5.6
2.5
326. 5
9.5
(7. 2)
6 .1
1 .4
1,065. 9
1 , 9 74 .1
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OTHER INFORMATION
Travis Perkins plc Annual Report and Accounts 2024
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2024
2023
£m
2024
(re-presented)
Cash flows from operating activities
Operating profit
2.3
160.7
Adjustments for:
Depreciation of property, plant and equipment
79. 8
7 9 .1
Depreciation of right-of-use assets
96.8
88.9
Amortisation of other intangibles
3.6
4.6
Amortisation of acquisition-related intangibles
10.4
10.5
Share-based payments
11.7
14 .6
Gain on disposal of property, plant and equipment
(11 . 3)
(1 5 .1)
Purchase of tool hire assets
(3 . 8)
(7. 8)
Decrease / (increase) in inventories
63.6
(0.4)
(Increase) / decrease in receivables
(7 6 .1)
36.9
Increase / (decrease) in payables
18 .0
(59 .1)
Adjusting items payments less than/(greater than) the charge
119. 2
16 . 3
Cash generated from operations
314. 2
329 . 2
Interest paid and debt arrangement fees
(25 . 3)
(31 . 0)
Interest on lease liabilities
(2 9 . 6)
(2 5 . 6)
Income taxes paid
(2 0 . 9)
(40.7)
Net cash inflow from continuing operating activities
23 8.4
2 31 . 9
Net cash outflow from discontinued operating activities
(1 5 . 9)
(14 . 3)
Net cash from operating activities
222.5
2 1 7. 6
2023
£m
2024
(re-presented)
Cash flows from investing activities
Interest received
5. 8
6 .0
Proceeds on disposal of property, plant and equipment
63.0
69 .1
Purchases of land and buildings
(12 . 3)
(3 3 . 2)
Purchases of other property, plant and equipment
(5 5 . 8)
(96 . 5)
Purchase/development of computer software
(4 .1)
(2 . 9)
Net cash outflow from continuing investing activities
(3 . 4)
(5 7. 5)
Net cash outflow from discontinued investing activities
–
(1 . 4)
Net cash outflow from investing activities
(3 . 4)
(5 8 . 9)
Cash flows from financing activities
Sale of own shares
0.1
–
Repayment of lease liabilities
(93 . 8)
(82 . 4)
Payments to pension scheme
–
(3 . 8)
Dividends paid
(2 3 . 2)
(8 2 .1)
Drawdown of borrowings
–
10 0.0
Repayment of bonds
–
(18 0 . 0)
Net cash outflow used in continuing financing activities
(1 1 6 . 9)
(24 8 . 3)
Net cash outflow used in discontinued financing activities
(2 . 5)
(2 .1)
Net cash used in financing activities
(1 19 . 4)
(250.4)
Net increase/(decrease) in cash and cash equivalents
99.7
(9 1 . 7)
Cash and cash equivalents at 1 January
131 .5
223 . 2
Cash and cash equivalents at 31 December (note 22)
231 . 2
1 31 . 5
136
STRATEGIC REPORT
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FINANCIAL STATEMENTS
OTHER INFORMATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 December 2024
Travis Perkins plc Annual Report and Accounts 2024
GENERAL INFORMATION
Overview
Travis Perkins plc is a Company incorporated in the United Kingdom under the Companies Act 2006.
The address of the registered office is given on page 174. The nature of the Group’s operations and its
principal activities are set out in the Strategic Report on pages 6 to 25.
These financial statements are presented in pounds sterling, the currency of the primary economic environment
in which the Group operates, and presented rounded to the nearest £100,000 unless otherwise stated .
Basis of accounting
The Group financial statements have been prepared in accordance with UK-adopted international
accounting standards.
The Company has elected to prepare its Parent Company financial statements in accordance with FRS 101;
these are presented on pages 172 to 180.
Basis of preparation
The financial statements have been prepared on the historical cost basis, except that derivatives, other
financial instruments and contingent consideration arising from business combinations are stated at fair
value through profit and loss and designated financial instruments are stated at fair value through other
comprehensive income. The consolidated financial statements include the accounts of the Company and
all entities controlled by the Company (its subsidiaries, together referred to as “the Group”) from the date
control commences until the date that control ceases. Control is achieved where the Company:
• Has power over the investee.
• Is exposed or has rights to a variable return from the involvement with the investee.
• Has the ability to use its power to affect its returns.
As such, the results of subsidiaries acquired are included in the consolidated income statement from the
effective date of acquisition.
Foreign currencies
Transactions denominated in foreign currencies are recorded at the rates ruling on the date of the transaction.
At the balance sheet date, monetary assets and liabilities denominated in foreign currencies are translated at
the rate of exchange ruling at that date. Foreign exchange differences arising on translation are recognised in
the income statement.
Going concern
After reviewing the Group’s forecasts and risk assessments and making other enquiries, the Board
has formed the judgement at the time of approving the financial statements that there is a reasonable
expectation that the Group has adequate resources to continue in operational existence for the 12 months
from the date of signing this Annual Report and Accounts. For this reason the Board continues to adopt the
going concern basis in preparing the financial statements.
In arriving at their opinion the Directors considered:
• The Group’s cash flow forecasts and revenue projections.
• The impact on trading performance of severe but plausible downside scenarios. Key assumptions include
significant reductions in revenue, removal of property profits and limited reductions in fixed overheads, as well
as mitigating actions such as delayed capital expenditure, reduced overhead investment and dividend reduction.
• The committed debt facilities available to the Group and the covenants thereon.
• The Group’s debt maturity profile and the successful issuance of £125m of new debt in March 2025.
• The Group’s robust policy towards liquidity and cash flow management.
• The Group’s ability to successfully manage the principal risk and uncertainties outlined on pages 59 to 69
during periods of uncertain economic outlook and challenging macroeconomic conditions.
The downside scenarios tested, outlining the impact of severe but plausible adverse scenarios based on
a severe recession and housing market weakness, show that there is sufficient headroom for liquidity and
covenant compliance purposes for at least the next 12 months from the date of approval of these financial
statements. The going concern assessment is not sensitive to estimates on inflation.
Significant accounting policies
The principal accounting policies adopted in preparing the financial statements are provided throughout the
notes to the financial statements.
Key judgements and estimates
The preparation of financial statements requires the Directors to make estimates and assumptions about
future events that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities. Future events and their effects cannot be determined with certainty. Therefore,
the determination of estimates requires the exercise of judgement based on various assumptions and
other factors such as historical experience and current and expected economic conditions. The Directors
frequently re-evaluate these significant factors and make adjustments as facts and circumstances dictate.
During the year the Group implemented Oracle as its new finance system in three of its Merchanting
businesses. This will reduce the level of estimation previously necessitated by these businesses’ use
of finance systems first implemented by the Group over 30 years ago. The anticipated challenges of
implementing a new finance system means that there is a greater amount of estimation in the preparation
of the 2025 financial statements than is anticipated to be the case in future reporting periods, particularly in
respect of accrued revenue and related liabilities. None of these areas are considered to have a significant
risk of a material adjustment to the carrying value of assets and liabilities within the next financial year.
137
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OTHER INFORMATION
Travis Perkins plc Annual Report and Accounts 2024
Key judgements and estimates, including those that have a significant risk of resulting in a material
adjustment to the carrying amount of assets and liabilities within the next financial year, are found in the
following notes:
Page Note Description
144 8 Classification of Toolstation France as a discontinued operation
154 18 Pension liability assumptions
166 29 Impairment reviews
The notes are organised into the following sections:
Income and expenses: Provides a breakdown of individual line items in the income statement and
summarises the accounting policies, judgements and estimates relevant to understanding these items.
Assets and liabilities: Provides a breakdown of individual line items in the balance sheet and summarises
the accounting policies, judgements and estimates relevant to understanding these items.
Capital: Provides information about the capital management practices of the Group and shareholder returns
for the year.
Risks: Discusses the Group’s impairment testing and the exposure to various financial risks, explains how
these affect the Group’s financial position and performance and what the Group does to manage these risks.
Group structure: Explains aspects of the Group structure and how changes have affected the financial
position and performance of the Group.
People: Provides information about the number of people employed by the Group and associated costs.
Other: Provides information on items which require disclosure, but are not considered critical in
understanding the financial performance or position of the Group.
INCOME AND EXPENSES
1. Revenue
Accounting policy
Revenue recognition
Revenue is recognised when the Group has satisfied its performance obligations to the customer and
the customer has obtained control of the goods or services being transferred. Performance obligations to
the customer in respect of sales of goods are satisfied on delivery or collection by customer. Payments
are typically due from credit customers not later than the last day of the month following the month of
delivery. Revenue is measured at the transaction price received or receivable and represents amounts
receivable for goods and services provided in the normal course of business, net of discounts and value
added tax. For the Group sale of services revenue comprises tool hire. Tool hire revenue is recognised on
a straight-line basis over the period of hire.
Customer rebates
Where the Group has rebate agreements with its customers, the value of variable income with respect
to customer rebates is calculated in accordance with the agreements in place so that the amount
recognised as revenue in the year is based on the amount which is highly probable not to reverse.
a. Revenue
£m 2024
2023
(re-presented)
Sale of goods 4,439.9 4,668.3
Sale of services 167. 5 168.8
4,607.4 4,837.1
All revenue arose in the UK except for £109.1m (2023: £107.3m) arising in Europe .
138
STRATEGIC REPORT
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FINANCIAL STATEMENTS
OTHER INFORMATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 December 2024
Travis Perkins plc Annual Report and Accounts 2024
INCOME AND EXPENSES CONTINUED
1. Revenue continued
b. Revenue reconciliation and like-for-like sales
£m Merchanting Toolstation Total
2023 revenue (re-presented) 4,035.8 801.3 4,837.1
Network change (62.5) (12.7) (75.2)
Trading days 49.5 2.4 51.9
2023 like-for-like revenue (re-presented) 4,022.8 791.0 4,813.8
Like-for-like change (271.9) 15.3 (256.6)
2024 like-for-like revenue 3,750.9 806.3 4,557. 2
Network change 35.4 14.8 50.2
2024 revenue 3,786.3 821.1 4,607.4
Like-for-like revenue growth (6.8%) 1.9% (5.3%)
Total revenue growth (6.2%) 2.5% (4.7%)
Like-for-like sales are a measure of underlying sales performance for two successive periods. Branches
and stores contribute to like-for-like sales once they have been trading for more than 12 months. Revenue
included in like-for-like is for the equivalent times in both years being compared. When branches close,
revenue is excluded from the prior year figures for the months equivalent to the post-closure period in the
current year.
2. Profit
a. Operating profit
£m 2024
2023
(re-presented)
Revenue 4,607.4 4,837.1
Cost of sales (3,403.7) (3,538.3)
Gross profit 1,203.7 1,298.8
Charge for impairment losses for trade receivables (16.7) (16.8)
Selling and distribution (779.2) (823.2)
Administrative expenses – other (271.3) (284.9)
Profit on disposal of properties 11.3 15.1
Other operating income 4.0 9.1
Adjusted operating profit 151.8 198.1
Administrative expenses – adjusting items (139.1) (26.9)
Administrative expenses – amortisation of acquired intangible assets (10.4) (10.5)
Operating profit 2.3 160.7
Adjusted operating profit before property disposals 140.5 183.0
During the year the Group recognised a gain on the disposal of plant and equipment of £0.8m (2023: nil).
b. Adjusted profit
£m 2024
2023
(re-presented)
(Loss)/profit before tax (38.4) 121.4
Adjusting items (note 3) 139.1 26.9
Amortisation of acquired intangible assets 10.4 10.5
Adjusted profit before tax 111.1 158.8
Total tax (2.2) (31.9)
Tax on adjusting items (29.0) (9.7)
Tax on amortisation of acquired intangible assets (2.6) (2.6)
Adjusted profit after tax 7 7. 3 114.6
Adjusted profit excludes adjusting items and amortisation of acquired intangible assets.
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Travis Perkins plc Annual Report and Accounts 2024
3. Adjusting items
Accounting policy
Adjusting items are those items of income and expenditure that, individually or in aggregate, by reference
to the Group, are material in size and unusual in nature or incidence and that in the judgement of the
Directors should be disclosed separately on the face of the financial statements (or in the notes in the
case of a segment) to ensure both that the reader has a clear understanding of the Group’s underlying
financial performance and that there is comparability of financial performance between periods.
Items of income or expense that are considered by the Directors for designation as adjusting items
include, but are not limited to, significant one-year or multi-year restructuring programmes, onerous
contracts, write-downs or impairments of assets, the costs of acquiring and integrating businesses, gains
or losses on disposals of businesses and investments, re-measurement gains or losses arising from
changes in the fair value of derivative financial instruments to the extent that hedge accounting is not
achieved or is not effective, pension scheme curtailment gains and the effect of changes in corporation
tax rates on deferred tax balances.
£m 2024
2023
(re-presented)
Restructuring 37.0 16.8
Staircraft impairment (note 29) 32.7 –
Branch impairments (note 29) 62.7 –
Benchmarx branch closures 6.7 10.1
139.1 26.9
Restructuring
In the second half of 2023, in response to the continued weakness in the construction market, the Group
commenced a restructuring of its support functions and its supply chain. This programme concluded in 2024.
The 2024 costs associated with this programme are:
• £26.2m of costs from the consolidation of the Group’s supply chain, including £9.3m of dilapidations
costs and other property-related items, £12.9m of stock impairments and £4.0m of other associated costs.
Of these items, £4.7m of stock impairments, £1.4m property costs and £1.3m of other associated costs
relate to the Toolstation UK business.
• Redundancy and other associated costs of £10.8m in respect of central and regional restructuring.
Costs of £16.8m were incurred in 2023 in respect of this restructuring activity.
Impairment
A full branch-level impairment review was conducted and identified 209 Merchanting branches where
the carrying value of the branch assets was above the value of the discounted future cash flows generated
from these assets. The total impairment recognised in respect of Travis Perkins General Merchant and CCF
branches is £57.0m and reflects the under-utilisation of these assets within the review period as a result of
cyclically depressed market volumes. A charge of £5.7m has been recognised in respect of other branch
assets. Additionally, an impairment of £32.7m has been recognised in respect of the annual impairment
review of the Staircraft business. Refer to note 29 for more details on the Group’s impairment reviews.
Benchmarx branch closures
In 2023 a charge of £10.1m was recognised in respect of the impairment of tangible fixed assets and right-
of-use assets and the recognition of property-related provisions for 39 standalone Benchmarx branches.
These branches were closed in 2024 and an additional charge of £6.7m recognised in respect of closure
costs.
4. Other operating income and auditor’s remuneration
a. Other operating income
£m 2024
2023
(re-presented)
Rental income 3.8 4.4
Transitional Service Agreement income 0.2 4.7
4.0 9.1
The Transition Service Agreement income represented amounts received in respect of specific services provided
to businesses the Group had sold or demerged in order to maintain business continuity in those businesses.
140
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FINANCIAL STATEMENTS
OTHER INFORMATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 December 2024
Travis Perkins plc Annual Report and Accounts 2024
INCOME AND EXPENSES CONTINUED
4. Other operating income and auditor’s remuneration continued
b. Auditor’s remuneration
During the year the Group incurred the following costs for services provided by the Company’s auditor:
£m 2024 2023
Fees payable to the Company’s auditor for audit services:
Audit of the Company’s annual accounts 0.5 0.3
Auditor for the audit of the Company’s subsidiaries 2.2 1.7
Additional fees payable for the prior period audit 0.4 0.1
Fees paid to the Company’s auditor for other services:
Audit-related assurance services 0.1 0.1
3.2 2.2
A description of the work of the Audit Committee is set out in the Audit Committee report on pages 84
to 89 and includes an explanation of how auditor objectivity and independence is safeguarded when the
auditor provides non-audit services.
5. Business segments
The operating segments are identified on the basis of internal reports about components of the Group that
are regularly reviewed by the Chief Operating Decision Maker (“CODM”), which is considered to be the
Board, to assess performance and allocate capital.
Segmental operating profit represents the result of each segment without allocation of certain central costs,
finance costs and tax. Segmental adjusted operating profit is the result of each segment before adjusting
items, the amortisation of acquired intangible assets and property profits. Unallocated segment assets and
liabilities comprise financial instruments, current and deferred tax, cash, borrowings and pension scheme
assets and liabilities.
Both operating segments sell building materials to a wide range of customers, none of which are dominant,
and operate predominantly in the United Kingdom. The Toolstation segment sells building materials at a
fixed price, with a fixed range in each store. The Merchanting segment sells building materials at prices
specifically negotiated with customers, with variation in the products offered in each branch.
a. Segment information
£m
2024
Merchanting Toolstation Unallocated Consolidated
Revenue 3,786.3 821.1 – 4,607.4
Operating profit 19.5 12.0 (29.2) 2.3
Amortisation of acquired intangible assets 7.6 2.8 – 10.4
Adjusting items 132.6 6.5 – 139.1
Less property profits (11.3) – – (11.3)
Segmental adjusted operating profit 148.4 21.3 (29.2) 140.5
Adjusted operating margin 3.9% 2.6% – 3.0%
Average capital employed 2,232.5 564.3 12.4 2,809.2
Segment assets 2,888.0 726.6 416.6 4,031.2
Segment liabilities (1,165.3) (380.9) (510.9) (2 ,05 7.1)
Consolidated net assets 1,722.7 345.7 (94.3) 1,974.1
Capital expenditure excluding property 51.4 12.6 – 64.0
Depreciation of fixed assets and software amortisation 75.3 18.5 – 93.8
Depreciation of right-of-use assets 67.4 29.4 – 96.8
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FINANCIAL STATEMENTS
OTHER INFORMATION
Travis Perkins plc Annual Report and Accounts 2024
£m
2023 (re-presented)
Merchanting Toolstation Unallocated Consolidated
Revenue 4,035.8 801.3 – 4,837.1
Operating profit 198.9 (4.8) (33.4) 160.7
Amortisation of acquired intangible assets 7.6 2.9 – 10.5
Adjusting items 20.9 5.2 0.8 26.9
Less property profits (15.1) – – (15.1)
Adjusted operating profit excluding property profits 212.3 3.3 (32.6) 183.0
Adjusted operating margin 5.3% 0.4% – 3.8%
Average capital employed 2,250.7 596.0 6.1 2,852.8
Segment assets 2,943.4 764.6 317.5 4,025.5
Segment liabilities (1,070.6) (375.1) (539.5) (1,985.2)
Consolidated net assets 1,872.8 389.5 (222.0) 2,040.3
Capital expenditure excluding property 89.5 17.8 – 107. 3
Depreciation of fixed assets and software amortisation 67.8 15.9 – 83.7
Depreciation of right-of-use assets 56.8 32.1 – 88.9
b. Unallocated segment assets and liabilities
Unallocated segment assets and liabilities comprise the following:
£m 2024 2023
Assets
Financial instruments 3.3 2.9
Property, plant and equipment 16.5 17. 5
Cash and cash equivalents 244.4 131.5
Retirement benefit surplus 116.9 118.7
Unallocated corporate assets 18.0 14.4
Tax asset – 14.5
Deferred tax asset 17.5 18.0
416.6 317.5
Liabilities
Deferred tax liabilities (68.3) (92.8)
Interest-bearing loans, borrowings and loan notes (435.0) (445.1)
Unallocated corporate liabilities (7.6) (1.6)
(510.9) (539.5)
Non-current assets with a carrying value of £101.8m (2023: £111.7m) owned by the Toolstation Europe
businesses are located in foreign countries.
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FINANCIAL STATEMENTS
OTHER INFORMATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 December 2024
Travis Perkins plc Annual Report and Accounts 2024
INCOME AND EXPENSES CONTINUED
6. Net finance costs
£m 2024
2023
(re-presented)
Items in the nature of interest:
Interest on bonds and other loans (17.1) (20.6)
Interest on bank facilities and overdrafts (2.0) (1.5)
Pension scheme SPV interest (1.8) (1.7)
Other finance costs:
Amortisation of issue costs of bank loans (1.3) (1.5)
Unwinding of discounts – property provisions – (0.1)
Remeasurement:
Net loss on remeasurement of derivatives at fair value – (0.2)
Loss on remeasurement of foreign exchange – (0.2)
Lease interest:
Interest on lease liabilities – property (26.5) (24.7)
Interest on lease liabilities – equipment (3.1) (0.9)
Finance costs (51.8) (51.4)
Items in the nature of interest:
Interest receivable 6.0 5.7
Remeasurement:
Net gain on remeasurement of derivatives at fair value 0.8 –
Other finance income – pension scheme 4.3 6.4
Finance income 11.1 12.1
Net finance costs (40.7) (39.3)
The Group’s interest cover covenants are calculated using those items of finance income and finance cost
that are in the nature of interest, including interest on lease liabilities. In 2024 these were in total £44.5m
(2023: £43.7m).
Net finance costs relating to discontinued operations are £0.4m (2023: £0.6m).
7. Ta x
Accounting policy
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported
in the income statement because it excludes items of income and expense that are taxable or deductible in other
years and it further excludes items which are never taxable or deductible. The Group’s liability for current tax is
calculated using tax rates that have been enacted or substantially enacted by the balance sheet date .
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying
amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit. This is accounted for using the balance sheet liability method.
Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets
are recognised to the extent that it is probable that taxable profits will be available against which deductible
temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary
difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction
(other than in a business combination) that affects neither the taxable profit nor the accounting profit.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled
or the asset realised based on tax laws and rates that have been enacted or substantially enacted at the
balance sheet date. Deferred tax is charged or credited in the income statement, except when it relates to
items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity .
a. Tax charge in the income statement
£m 2024
2023
(re-presented)
Current tax:
Current year 34.9 33.0
Prior year 0.6 (6.1)
Total current tax 35.5 26.9
Deferred tax:
Current year (32.8) (1.4)
Prior year (0.5) 6.4
Total deferred tax (33.3) 5.0
Total tax charge 2.2 31.9
The total tax charge in 2024 includes a credit of £29.0m relating to costs recognised as adjusting items
(2023: £9.7m) .
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The differences between the total tax charge and the amount calculated by applying the standard rate of UK
corporation tax to the profit before tax for the Group is as follows:
2024 2023 (re-presented)
£m % £m %
(Loss)/profit before tax (38.4) 121.4
Tax at the UK corporation tax rate (9.6) 25.0 28.6 23.5
Tax effect of expenses/credits that are not
deductible/taxable 1.2 (2.1)
Depreciation of non-qualifying property 3.4 3.3
Share-based payments 2.7 2.0
Losses 1.8 1.1
Property profits (3.0) (1.2)
Current period deferred tax rate differential – (0.1)
Impairment 5.6 –
Prior period adjustment 0.1 0.3
Tax expense and effective tax rate for the year 2.2 (5.7) 31.9 26.3
For accounting periods beginning after 31 December 2024 the Group will be required to comply with the
OECD Pillar Two model rules which will require the Group to pay a minimum level of tax on income arising
in the jurisdictions in which it operates. The Group’s current analysis of these rules and their application
in jurisdictions relevant to the Group indicate that no material additional tax liability will arise. The Group
has applied the mandatory temporary exception to the accounting for deferred taxes arising from the
implementation of the Pillar Two model rules.
b. Tax charge in the statement of comprehensive income
The following amounts relating to tax have been recognised in other comprehensive income:
£m 2024 2023
Items that may be reclassified:
Deferred tax (credit)/charge on cash flow hedge (0.1) 0.4
Items that may not be reclassified:
Deferred tax (credit)/charge on actuarial movement (9.5) 10.2
Income tax relating to other comprehensive income (9.6) 10.6
c. Tax credited directly to equity
The following amounts of tax have been recognised in equity:
£m 2024 2023
Deferred tax:
Revaluation reserve 0.2 0.5
Share-based payments 0.1 0.1
0.3 0.6
8. Discontinued operations
Key judgement on the classification of Toolstation France as a discontinued operation
During the year ended 31 December 2024 the Group ceased the operations of its Toolstation France
business. As this business represented a separate geographical area of operation and was a major
proportion of the Group’s loss for the year of £77.4m in 2024 and its profit for the year of £38.1m in
2023, the Group concluded that it met the definition of a discontinued operation in IFRS 5 – Non-current
Assets Held for Sale and Discontinued Operations. Accordingly its results are presented as those of
discontinued operations and the results for the year ended 31 December 2023 have been re-presented.
a. Results of discontinued operations
£m 2024
2023
(re-presented)
Revenue 16.3 24.8
Gross profit 8.2 6.3
Operating expenses (44.6) (57.1)
Net finance costs (0.4) (0.6)
Loss before tax (36.8) (51.4)
Tax – –
Loss from discontinuing operations (36.8) (51.4)
The loss before tax of £36.8m includes costs of £22.2m relating to the closure of the business. The loss
for the year ended 31 December 2023 from discontinued operations includes £33.1m which was previously
presented as an adjusting item.
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OTHER INFORMATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 December 2024
Travis Perkins plc Annual Report and Accounts 2024
INCOME AND EXPENSES CONTINUED
8. Discontinued operations continued
b. Cash flows relating to discontinued operations
£m
Year ended
31 December
2024
Year ended
31 December
2023
(re-presented)
Net cash outflow from operating activities (15.9) (14.3)
Net cash outflow from investing activities – (1.4)
Net cash used in financing activities (2.5) (2.1)
Net cash flows for the year for discontinued operations (18.4) (17. 8)
ASSETS AND LIABILITIES
9. Goodwill and other intangible assets
Accounting policy
Goodwill arising on acquisition represents the excess of the cost of acquisition over the share of the
aggregate fair value of identifiable net assets (including intangible assets) of a business or a subsidiary at
the date of acquisition. All material intangible fixed assets obtained on acquisition have been recognised
separately in the financial statements. Goodwill is initially recognised as an asset and allocated to cash-
generating units or groups of cash-generating units that are expected to benefit from the synergies of
the combination and is then reviewed at least annually for impairment. Any impairment is recognised
immediately in the income statement and is not reversed. Goodwill is accordingly stated in the balance
sheet at cost less any provisions for impairment in value. Intangible assets identified as part of the assets
of an acquired business are capitalised separately from goodwill if the fair value can be measured reliably
on initial recognition.
Goodwill arising on acquisitions before the date of transition to IFRS (1 January 2004) has been retained
at the previous UK GAAP carrying value subject to being tested for impairment at that date. Goodwill
written off to reserves prior to 1998 under UK GAAP has not been reinstated and would not be included
in determining any subsequent profit or loss on disposal.
a. Goodwill by reportable segment
£m Merchanting Toolstation Total
At 1 January 2023 684.8 174.2 859.0
Impairment – (9.6) (9.6)
Effect on movement in exchange rates – (1.5) (1.5)
At 1 January 2024 684.8 163.1 847.9
Impairment (23.8) – (23.8)
Effect on movement in exchange rates – (2.8) (2.8)
At 31 December 2024 661.0 160.3 821.3
b. Other intangible assets
Accounting policy
Intangible assets are amortised to the income statement on a straight-line basis over a maximum of 20
years except where they are considered to have an indefinite useful life. In the latter instance, they are
reviewed annually for impairment.
The directly attributable costs incurred for the development of computer software controlled by and for
use within the business are capitalised and written off over their estimated useful life, which ranges from
three to ten years. Interfaces are amortised over the lower of the remaining estimated useful lives of the
systems they operate between. Costs relating to research, maintenance and training are expensed as
they are incurred.
Amounts paid to third parties in respect of the development of software and other intangible assets not
controlled by the Group are expensed over the period where the Group receives the service. The cost
of configuring and customising software is treated as a prepayment and recognised over the period the
Group benefits from the implemented software only if the configuration and customisation service is not
distinct from the provision of the software itself. Licence fees for using third-party software are expensed
over the period the software is in use.
Acquired customer relationships are amortised over their estimated useful lives, which range from 5 to
15 years. The remaining lives of amortised customer relationships range from one to seven years. No
amortisation is charged on computer software under construction .
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Travis Perkins plc Annual Report and Accounts 2024
£m Brand
Computer
software
Customer
relationships
Assets under
construction Total
Cost or valuation
At 1 January 2023 150.4 110.7 151.6 0.7 413.4
Additions – 1.1 – 2.0 3.1
Impairments (1.9) – – – (1.9)
Derecognition – – – (2.1) (2.1)
At 1 January 2024 148.5 111.8 151.6 0.6 412.5
Additions – 3.9 – 0.2 4.1
Transfers from property, plant &
equipment – 0.6 – – 0.6
Reclassification – 0.5 – (0.5) –
Disposals – (0.5) – – (0.5)
At 31 December 2024 148.5 116.3 151.6 0.3 416.7
Amortisation
At 1 January 2023 73.7 98.1 125.7 – 297.5
Charged on acquired intangibles 2.3 – 8.2 – 10.5
Charged on internally generated
intangibles – 4.6 – – 4.6
At 1 January 2024 76.0 102.7 133.9 – 312.6
Charged on acquired intangibles 2.3 – 8.1 – 10.4
Charged on internally generated
intangibles – 3.6 – – 3.6
Impairment – – 3.4 – 3.4
Disposals – (0.2) – – (0.2)
At 31 December 2024 78.3 106.1 145.4 – 329.8
Net book value
At 31 December 2023 72.5 9.1 17.7 0.6 99.9
At 31 December 2024 70.2 10.2 6.2 0.3 86.9
Where a brand has not been established for a significant period of time the Directors do not have sufficient
evidence to support a contention that it will have an indefinite useful life. Accordingly for Toolstation and
certain product-related brands the Directors have decided it is appropriate to amortise their brand costs over
their estimated useful lives. The useful lives of those brands being amortised range from 10 to 20 years.
The Directors consider that the BSS brand, which is a leading brand in its sector with significant history and
significant growth prospects, has an indefinite useful life. It is reviewed annually for impairment; details of
impairment tests are shown in note 29.
c. Cash-generating units
The Directors consider that each branch or distribution network in the Group is an individual cash-generating
unit (“CGU”). Goodwill and intangible fixed assets with indefinite useful lives have been allocated for
impairment testing purposes to groups of individual CGUs within the same brand. The following table
analyses goodwill and intangible fixed assets with indefinite useful lives by CGU grouping.
£m
CGU grouping
2024 2023
Intangibles Goodwill Total Intangibles Goodwill Total
Merchanting
Travis Perkins – 482.6 482.6 – 482.6 482.6
Keyline – 100.2 100.2 – 100.2 100.2
CCF – 43.6 43.6 – 43.6 43.6
BSS Industrial 49.3 26.8 76.1 49.3 26.8 76.1
Staircraft – – – – 23.8 23.8
TF Solutions – 7. 8 7.8 – 7.8 7.8
Toolstation
Toolstation UK – 103.4 103.4 – 103.4 103.4
Toolstation Benelux – 56.9 56.9 – 59.7 59.7
49.3 821.3 870.6 49.3 847.9 897.2
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OTHER INFORMATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 December 2024
Travis Perkins plc Annual Report and Accounts 2024
ASSETS AND LIABILITIES CONTINUED
10. Property, plant and equipment
Accounting policy
Property, plant and equipment is stated at cost or deemed cost less accumulated depreciation and any
impairment in value. Assets are depreciated to their estimated residual value on a straight-line basis over
their estimated useful lives as follows:
• Buildings – 50 years or, if lower, the estimated useful life of the building or the life of the lease
• Leasehold improvements – the life of the lease
• Plant and equipment – 4 to 10 years
• Freehold land is not depreciated
The estimated useful lives are estimated taking into consideration the potential impact of climate change .
The gain or loss arising on the disposal or retirement of an asset is determined as the difference between
the sale proceeds net of expenses and the carrying amount of the asset in the balance sheet and is
recognised in the income statement. Where appropriate, the attributable revaluation reserve remaining in
respect of properties revalued prior to the adoption of IFRS is transferred directly to retained earnings .
£m Freehold
Long
leasehold
Leasehold
improvements
Plant and
equipment Total
Cost or deemed cost
At 1 January 2023 531.3 29.6 215.0 732.9 1,508.8
Additions 4.7 22.1 35.0 80.7 142.5
Disposals (46.6) (0.5) (6.0) (74.0) (127.1)
Impairments – – (12.5) (10.5) (23.0)
Reclassifications (2.4) – (10.0) 12.4 –
Effect of movements in exchange rates – – – (0.6) (0.6)
At 1 January 2024 4 87.0 51.2 221.5 740.9 1,500.6
Additions 9.6 – 32.5 28.4 70.5
Disposals (15.8) (4.7) (11.4) (45.4) (7 7.3)
Reclassifications 30.5 2.2 (45.1) 18.4 6.0
Effect of movements in exchange rates – – – (0.7) (0.7)
At 31 December 2024 511.3 48.7 197.5 741.6 1,499.1
£m Freehold
Long
leasehold
Leasehold
improvements
Plant and
equipment Total
Accumulated depreciation
At 1 January 2023 61.0 12.6 82.2 505.7 661.5
Charged in the year 7.0 0.8 14.6 57.9 80.3
Disposals (6.4) – (6.6) (63.2) (76.2)
Impairments – – (5.2) (8.0) (13.2)
Reclassifications 0.3 – (0.3) – –
Effect of movements in exchange rates – – – (0.2) (0.2)
At 1 January 2024 61.9 13.4 84.7 492.2 652.2
Charged in the year 6.7 1.0 12.6 59.5 79.8
Disposals (5.1) (1.4) (1.9) (42.1) (50.5)
Impairments – – 11.9 27.7 39.6
Reclassifications 14.8 0.3 5.5 (14.6) 6.0
Write offs – – 1.5 – 1.5
Effect of movements in exchange rates – – – (0.6) (0.6)
At 31 December 2024 78.3 13.3 114.3 522.1 728.0
Net book value
At 31 December 2023 425.1 37.8 136.8 248.7 848.4
At 31 December 2024 433.0 35.4 83.2 219.5 771.1
Included within freehold property is land with a value of £227.5m (2023: £215.6m) which is not depreciated.
No assets are pledged as security for the Group’s liabilities. Included within leasehold improvements is
£17.5m (2023: £21.4m) in respect of assets under construction which are not depreciated.
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Travis Perkins plc Annual Report and Accounts 2024
11. Leases
Accounting policy
Identifying a lease
At the inception of a contract, the Group assesses whether a contract contains a lease. At inception the
Group allocates the consideration in the contract to each lease component on the basis of their relative
stand-alone prices except for fleet leases for which the Group does not separate non-lease components
and accounts for the lease and non-lease components as a single lease component.
Recognition exceptions
The Group takes the lease recognition exemption for leases with a lease term of 12 months or less
and containing no purchase options and leases where the underlying asset has a low value when new.
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-
line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or
less. Low-value assets comprise mainly IT equipment, vending machines and paint-mixing machines.
Lease terms
Extension and termination options are included in a number of property and equipment leases across
the Group. These terms are used to maximise operational flexibility. The Group has applied judgement
to determine the lease term for some lease contracts that includes renewal options and break clauses. In
determining the lease term, management considers all facts and circumstances that create an economic
incentive to exercise an extension option, or not exercise a termination option. Extension options (or
periods after termination options) are only included in the lease term if the lease is reasonably certain to
be extended (or not terminated).
For property leases the most relevant is normally the profitability of the leased branch or warehouse and
future plans for the business. If there are significant penalties to terminate or not extend, the Group is
typically reasonably certain to not terminate or extend.
Lessee accounting
Initial measurement
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or before the commencement date and any initial direct
costs incurred, less any lease incentives received.
The lease liability is initially measured at the present value of the lease payments payable over the lease
term, discounted at the rate implicit in the lease if that can be readily determined and otherwise at the
incremental borrowing rate.
Subsequent measurement
After lease commencement, the Group measures right-of-use assets at cost less accumulated
depreciation and accumulated impairment.
The lease liability is subsequently remeasured to reflect changes in the lease term, the assessment
of a purchase option and future lease payments resulting from a change in an index or a rate used to
determine those payments. The remeasurements are matched by adjustments to the right-of-use asset.
Lease modifications may also prompt remeasurement of the lease liability unless they are determined to
be separate leases.
Depreciation
The right-of-use asset is subsequently depreciated using the straight-line method to the earlier of the end
of the useful life of the right-of-use asset or the end of lease term. Estimated useful lives are determined
on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is
reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
Sale and leaseback transactions
If an asset transfer satisfies the requirements of IFRS 15 – Revenue from Contracts with Customers to
be accounted for as a sale, the Group measures the right-of-use asset at the proportion of the previous
carrying amount that relates to the right-of-use retained. Accordingly, the Group only recognises the
amount of gain or loss that relates to the rights transferred to the buyer.
a. Amounts recognised in the balance sheet
All right-of-use assets relate to land and buildings except for £58.4m in respect of plant and equipment
(2023: £29.6m). Additions to right-of-use assets in 2024 were £152.1m (2023: £182.4m).
Lease liability maturity analysis – contractual undiscounted cash flows:
£m 2024 2023
Less than one year 119.9 106.9
One to five years 369.3 337.8
More than five years 336.2 316.5
Total undiscounted lease liabilities at 31 December 825.4 761.2
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FINANCIAL STATEMENTS
OTHER INFORMATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 December 2024
Travis Perkins plc Annual Report and Accounts 2024
ASSETS AND LIABILITIES CONTINUED
11. Leases continued
b. Amounts recognised in the statement of profit and loss
The statement of profit and loss shows the following amounts relating to leases:
£m 2024
2023
(re-presented)
Expense relating to short-term leases 4.4 4.9
Expense relating to leases of low-value assets 3.5 3.1
Impairment/(reversal of impairment) of right-of-use assets 31.2 (1.7)
Gains on lease terminations – (2.5)
An impairment right-of-use assets has been recognised with respect to land and buildings of £17.9m
and plant and equipment of £13.3m. Total depreciation of right-of-use assets of £96.8m (2023: £91.1m)
represents £83.6m in respect of land and buildings (2023: £79.8m) and £13.2m in respect of plant and
equipment (2023: £11.3m). The total cash outflow for leases in 2024 was £131.3m (2023: £116.2m).
c. The Group’s leasing activities
The Group leases various properties, motor vehicles and equipment. Rental contracts are typically made for
fixed periods but may have extension options. Lease terms are negotiated on an individual basis and contain
a wide range of different terms and conditions. Extension and termination options are included in a number
of property and equipment leases across the Group and are used to provide operational flexibility.
The Group routinely enters into sale and leaseback transactions as part of its property management and
investment strategy. The requirement of IFRS 16 – Leases to, in transfers that are accounted for as a sale,
only recognise the amount of any gain or loss that relates to the rights transferred to the buyer-lessor, results
in differences between the recognition of cash proceeds from the disposal of property, plant and equipment
and the recognition of profit from these disposals.
d. The Group as lessor
The Group leases a number of ex-trading properties and surplus units in trade parks owned by the
Group to third parties. Property rental income earned during the year in respect of these properties was
£3.8m (2023: £4.4m). At the balance sheet date, the Group had contracts with lessees for the following
undiscounted future minimum lease payments:
£m 2024 2023
Within one year 4.7 4.6
One to five years 21.4 22.8
After five years 5.0 5.0
31.1 32.4
12. Inventories
Accounting policy
Inventories, which consist of goods for resale, are stated at the lower of average weighted cost and net
realisable value. Cost comprises direct materials and, where applicable, direct labour costs and those
overheads that have been incurred in bringing the inventories to their present location and condition. Net
realisable value is the estimated selling price less the estimated costs of disposal .
£m 2024 2023
Inventories 648.6 727.6
The cost of inventories recognised as an expense in 2024 was £3,328.9m (2023: £3,381.4m). A charge of
£5.2m (2023: £2.0m) was recognised as a result of the movement of provisions against inventory.
13. Supplier income
Accounting policy
Supplier income comprises fixed price discounts, volume rebates and customer sales support.
Fixed price discounts and volume rebates received and receivable in respect of goods which have been sold
are initially deducted from the cost of inventory and therefore reduce cost of sales in the income statement
when the goods are sold. Where goods on which the fixed price discount or volume rebate has been earned
remain in inventory at the year end, the cost of that inventory reflects those discounts and rebates.
The Group receives customer sales support payments that are made entirely at the supplier’s option, that
are requested by the Group when a specific product is about to be sold to a specific customer and for
which payment is only received after the sale has been completed. All customer sales support receipts
received and receivable are deducted from cost of sales when the sale to the third party has been
completed, i.e. when the customer sales support payment has been earned.
Supplier income receivable is netted off against trade payables when there is a legally binding
arrangement in place and it is management’s intention to do so, otherwise amounts are included in other
receivables in the balance sheet.
Supplier income balances included within the Group balance sheet are as follows:
£m 2024 2023
Other receivables 99.0 104.0
Trade payables 73.0 82.0
Inventories (53.0) (52.0)
Net balance sheet position 119.0 134.0
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Travis Perkins plc Annual Report and Accounts 2024
14. Trade and other receivables
Accounting policy
Trade and other receivables
The Group’s trade and other receivables at the balance sheet date comprise principally amounts
receivable from the sale of goods, amounts due in respect of rebates in relation to unbilled work in
progress and sundry prepayments.
Impairment of financial assets
Trade receivables are subject to the expected credit loss model in IFRS 9 – Financial Instruments. The
Group applies the IFRS 9 – Financial Instruments simplified approach to measuring expected credit
losses. This uses a lifetime expected loss allowance for all trade receivables. To measure the expected
credit losses trade receivables have been grouped based on shared credit risk characteristics and the
days past due.
Trade receivables are written off when there is no reasonable expectation of recovery. Indicators that
there is no reasonable expectation of recovery include the failure of a debtor to engage in a repayment
plan with the Group and the commencement of legal proceedings .
£m 2024 2023
Current:
Trade receivables 598.1 547.1
Allowance for doubtful debts (29.8) (21.5)
568.3 525.6
Other receivables 111.8 129.2
Prepayments and accrued income 80.4 34.8
Total current trade and other receivables 760.5 689.6
Non-current:
Prepayments 15.3 14.2
Total non-current trade and other receivables 15.3 14.2
The Directors consider that the only class of asset containing material credit risk is trade receivables. The
average credit term taken for sales of goods is 59 days (2023: 56 days). No interest is charged on the trade
receivable from the date of the invoice until the date the invoice is classified as overdue according to the
trading terms agreed between the Group and the customer. Thereafter, the Group retains the right to charge
interest at 4% p.a. (2023: 4%) above the clearing bank base rate on the outstanding balance.
The increase in the non-current prepayments balance reflects supplier licence fees and implementation
costs incurred in respect of the Group’s technology upgrade programmes.
Movement in the allowance for doubtful debts
£m 2024 2023
At 1 January 21.5 17.7
Amounts written off and adjusted for during the year (8.4) (13.0)
Charge for impairment losses for trade receivables 16.7 16.8
At 31 December 29.8 21.5
Expected credit loss assessment
Loss rates are based on actual credit loss experience over the past seven years and existing market
conditions, as well as forward-looking estimates at the end of each reporting period.
The following table provides information about the exposure to credit risk and expected credit losses for
trade receivables as at 31 December 2024.
£m
Gross
carrying
amount
Weighted
average
loss rate
Net loss
allowance
Credit
impaired
Current (not past due) 530.7 0.8% (3.7) No
Days overdue:
1–30 24.2 7. 2 % (1.5) No
31–60 8.5 19.7% (1.4) No
61–90 3.9 28.0% (0.9) No
91–120 1.4 53.3% (0.6) No
More than 120 29.4 88.6% (21.7) Yes
598.1 (29.8 )
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FINANCIAL STATEMENTS
OTHER INFORMATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 December 2024
Travis Perkins plc Annual Report and Accounts 2024
ASSETS AND LIABILITIES CONTINUED
14. Trade and other receivables continued
The following table provides information about the exposure to credit risk and expected credit losses for
trade receivables as at 31 December 2023.
£m
Gross
carrying
amount
Weighted
average
loss rate
Net loss
allowance
Credit
impaired
Current (not past due) 506.8 0.8% (3.5) No
Days overdue:
1–30 10.6 6.8% (0.6) No
31–60 3.5 15.0% (0.4) No
61–90 1.5 25.0% (0.3) No
91–120 0.7 48.3% (0.3) No
More than 120 24.0 85.7% (16.4) Yes
547.1 (21.5)
15. Provisions
Accounting policy
A provision is recognised in the balance sheet when the Group has a present legal or constructive
obligation because of a past event, and it is probable that an outflow of economic benefits will be
required to settle the obligation. Provisions are measured at the Directors’ best estimate of the
expenditure required to settle the obligation at the balance sheet dates, and are discounted to present
value.
Should a provision ultimately prove to be unnecessary then it is credited back into the income statement.
Where the provision was originally established as an adjusting item, any significant release is shown as
an adjusting credit.
The Group has a number of vacant and partly sublet leased properties. Where necessary a provision has
been made for the residual commitments, after taking into account existing and anticipated subtenant
arrangements. The Group recognises provisions for the cost of reinstating certain Group properties at the
end of their lease term, based on the conditions set out in the terms of the individual leases. The timing
of the outflows will match the ends of the relevant leases, which range from two to 25 years.
It is Group policy to self-insure using policies with a high excess against claims arising in respect of
damage to third party assets, or due to employers or public liability claims. Whilst the Group does not
have a contractual right to defer payment, the nature of insurance claims means they may take some
time to be settled. The insurance claims provision represents management’s best estimate, based upon
external advice of the value of outstanding claims against it where the final settlement date is uncertain,
in line with IAS 37.
£m Property Insurance Restructuring Total
At 1 January 2023 12.4 19.0 – 31.4
Charge to income statement 8.3 7.7 4.9 20.9
Utilisation of provision (3.6) (5.6) – (9.2)
At 31 December 2023 17.1 21.1 4.9 43.1
Charge to income statement 17. 5 3.1 17. 2 37. 8
Utilisation of provision (6.4) (4.3) (9.2) (19.9)
At 31 December 2024 28.2 19.9 12.9 61.0
Included in current liabilities 6.6 19.9 12.9 39.4
Included in non-current liabilities 21.6 – – 21.6
28.2 19.9 12.9 61.0
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The restructuring provision relates to the support functions and supply chain restructuring activities treated
as adjusting items and discussed note 3. It excludes property-related provisions and inventory amounts
which are separately classified.
The following table details the Group’s liquidity analysis of its provisions, based on the undiscounted net cash
outflows. The impact of discounting is not material for the Group’s provisions.
£m 0–1 year 1–2 years 2–5 years 5+ years Total
2024:
Property 6.6 7.5 5.9 8.2 28.2
Insurance 19.9 – – – 19.9
Restructuring 12.9 – – – 12.9
39.4 7. 5 5.9 8.2 61.0
2023:
Property 13.3 1.4 1.2 1.2 17.1
Insurance 21.1 – – – 21.1
Restructuring 4.9 – – – 4.9
39.3 1.4 1.2 1.2 43.1
16. Deferred tax
The following are the major deferred tax assets and liabilities recognised by the Group and movements
thereon during the current and prior reporting periods.
£m
(Asset)/liability:
At 1 January
2024
Recognised in
income
Recognised in
equity
Recognised
in other
comprehensive
income
At 31 December
2024
Trading losses (18.0) 0.5 – – (17.5)
Deferred tax asset (18.0) 0.5 – – (17.5)
Capital allowances 21.1 (9.7) – – 11.4
Revaluation of property 2.9 – (0.2) – 2.7
Share-based payments (2.9) 0.8 (0.1) – (2.2)
Provisions 4.4 0.3 – – 4.7
Property assets acquired in
business combinations 8.8 (0.8) – – 8.0
Brand 21.8 (6.5) – – 15.3
Pension scheme asset 25.1 (5.4) – 9.5 29.2
Deferred gains on property
disposals 29.3 (0.7) – – 28.6
IFRS 16 lease liability (151.0) (12.7) – – (163.7)
IFRS 16 right-of-use asset 132.6 0.9 – – 133.5
Cash flow hedge 0.7 – – 0.1 0.8
Deferred tax liability 92.8 (33.8) (0.3) 9.6 68.3
Net deferred tax 74.8 (33.3) (0.3) 9.6 50.8
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 December 2024
Travis Perkins plc Annual Report and Accounts 2024
ASSETS AND LIABILITIES CONTINUED
16. Deferred tax continued
£m
(Asset)/liability:
At 1 January
2023
Recognised in
income
Recognised in
equity
Recognised
in other
comprehensive
income
At 31 December
2023
Trading losses (15.0) (3.0) – – (18.0)
Deferred tax asset (15.0) (3.0) – – (18.0)
Capital allowances 8.5 12.6 – – 21.1
Revaluation of property 3.4 – (0.5) – 2.9
Share-based payments (3.5) 0.7 (0.1) – (2.9)
Provisions 4.8 (0.4) – – 4.4
Property assets acquired in
business combinations 9.3 (0.5) – – 8.8
Brand 25.0 (3.2) – – 21.8
Pension scheme asset 33.9 1.4 – (10.2) 25.1
Deferred gains on property
disposals 31.1 (1.8) – – 29.3
IFRS 16 – Lease Liability (130.5) (20.5) – – (151.0)
IFRS 16 – Right-of-Use Asset 112.9 19.7 – – 132.6
Cash flow hedge 1.1 – – (0.4) 0.7
Deferred tax liability 96.0 8.0 (0.6) (10.6) 92.8
Net deferred tax 81.0 5.0 (0.6) (10.6) 74.8
The deferred tax asset in respect of trading losses primarily relates to the Toolstation Netherlands business.
An element of the deferred tax asset is recognised in respect of losses of £3.0m (2023: £7.0m) in the
Group’s other European Toolstation businesses to offset a deferred tax liability of the same value arising
in these businesses. No deferred tax asset has been recognised on the remaining losses of £21.7m (2023:
£76.5m) in the Group’s other European Toolstation businesses as there is currently insufficient evidence that
these losses would be utilised. The value of unrecognised losses has decreased from the position as at 31
December 2023 following the cessation of the operations of the Group’s Toolstation France business.
The Group considers it is appropriate to recognise a deferred tax asset on unused trading losses in
Toolstation Netherlands as forecasts, based on the existing Netherlands store network and the store
maturity profile of Toolstation stores in the UK and the Netherlands, indicate that the business will be able to
fully utilise these losses against future profits within a measurable time frame.
17. Trade and other payables
Accounting policy
Trade and other payables principally comprise amounts outstanding for trade purchases and ongoing
costs and are measured at amortised cost. The Directors consider that the carrying amount of trade
payables approximates to their fair value. The Group has financial risk management policies in place to
ensure that all payables are paid within the credit time frame .
£m 2024 2023
Trade payables 532.9 576.3
Other taxation and social security 79.0 48.6
Other payables 92.8 76.9
Accruals and deferred income 133.5 93.6
Trade and other payables 838.2 795.4
Included in trade payables at 31 December 2024 are amounts of £88.4m (2023: £91.3m) which are due for
settlement under supplier financing arrangements with third-party banks, of which suppliers had received
payments for £57.5m (2023: £55.3m). Suppliers choose to enter into these arrangements which provide
access to the option of early settlement of invoices at interest rates based on Travis Perkins’ credit rating.
If suppliers do not elect for early payment, invoices are settled on the date agreed in the existing payment
terms. In some cases, Travis Perkins has agreed extensions to payment terms with suppliers who regularly
access the scheme, with the longest payment terms 107 days (2023: 107 days), an extension of 45 days
(2023: 45 days). The total net amount outstanding where terms have been extended at 31 December 2024
was £9.7m (2023: £10.1m). Liabilities that are part of the arrangement had a range of payment dates of 52
– 107 days with trade payables that are not part of an arrangement having a range of 45 – 75 days (2023:
52 – 107 days compared to 45 – 75 days). These arrangements do not provide the Group with a significant
benefit of additional financing and have been put in place for the benefit of the Group’s suppliers, providing
them with access to cost-efficient third-party funding. As such, outstanding balances are classified as trade
payables and form part of the operating cash flows movement in the consolidated cash flow statement.
There were no non-cash transfers from trade payables to finance payables in 2024 (2023: none). There are
no significant judgements applied in the calculation of supplier finance balances.
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18. Pension arrangements
The Group has a number of historical defined benefit pension schemes, all of which are closed to new
members and future accruals. The Group operates four final salary schemes being The Travis Perkins
Pensions and Dependants’ Benefit Scheme (“the TP DB scheme”), the BSS Defined Benefit Scheme (“the
BSS DB Scheme”), the immaterial Platinum pension scheme and the immaterial BSS Ireland Defined
Benefit Scheme. The reconciliations and disclosures are presented as an aggregation of all schemes as each
scheme is subject to similar risk characteristics.
Accounting policy
The cost of providing benefits under defined benefit pension schemes is determined using the projected
unit credit method with actuarial valuations being carried out at the end of each reporting period.
Remeasurement comprising actuarial gains and losses, the effects of asset ceilings and minimum
funding payments and the return on scheme assets (excluding interest) are recognised immediately in
the balance sheet with a charge or credit to the statement of comprehensive income. Remeasurement
recorded in the statement of comprehensive income is not recycled. Net interest is calculated by applying
a discount rate to the net defined benefit liability or asset. Net interest expense or income is recognised
within finance costs.
a. Expected future cash flows
The Directors have agreed with the BSS DB Scheme’s Trustees and the TP DB Scheme’s Trustees that,
following the elimination of the deficits in these schemes, no further contributions from the Group are
currently required. Both schemes fund their management and administrative expenses .
b. Balance sheet position and movements during the year
The amount included in the balance sheet arising from the Group’s obligations in respect of all of its defined
benefit schemes and the movements during the year:
£m
2024 2023
Gross
assets
Gross
obligations Net
Gross
assets
Gross
obligations Net
Gross pension asset as
at 1 January 1,096.9 (996.3) 100.6 1,097.4 (961.5) 135.9
Amounts recognised in income:
Current service costs and
administration expenses (3.0) (0.1) (3.1) (2.3) – (2.3)
Interest income/(interest cost) 48.7 (44.2) 4.5 51.5 (45.1) 6.4
Other movements:
Contributions from sponsoring
companies 0.4 – 0.4 1.4 – 1.4
Foreign exchange (0.5) 0.4 (0.1) 0.2 (0.1) 0.1
Withdrawal of assets (23.2) – (23.2) – – –
Benefits paid (49.8) 49.8 – (44.1) 44.1 –
Balance sheet reclassifications – 2.7 2.7 – – –
Amounts recognised in other
comprehensive income:
Return on plan assets (excluding
amounts in net interest) (98.4) – (98.4) (7. 2) – (7.2)
Actuarial loss from changes in
demographic assumptions – (4.7) (4.7) – 8.6 8.6
Actuarial gain from changes in
financial assumptions – 100.4 100.4 – (20.4) (20.4)
Actuarial gain from experience
adjustments – 37.8 37.8 – (21.9) (21.9)
Gross pension asset as
at 31 December 971.1 (854.2) 116.9 1,096.9 (996.3) 100.6
The asset valuation of £971.1m (2023: £1,096.9m) at 31 December 2024 consists of the TP DB Scheme
£738.2m (2023: £843.1m) and the BSS DB Scheme £232.9m (2023: £253.8m). The obligation valuation
of £854.2m (2023: £996.3m) consists of the TP DB Scheme £645.1m (2023: £755.8m) and the BSS DB
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 December 2024
Travis Perkins plc Annual Report and Accounts 2024
Scheme £209.1m (2023: £240.5m).
ASSETS AND LIABILITIES CONTINUED
18. Pension arrangements continued
b. Balance sheet position and movements during the year continued
The actual loss on scheme assets of £49.7m (2023: gain of £44.3m) is represented by the interest income
and ‘return on plan assets (excluding amounts net interest)’ figures above.
The withdrawal of assets represents the unwind of a Group-controlled special purpose vehicle (“SPV”) used
to fund the historical deficit in the TP DB Scheme. See note 18(d)(i) for more information.
The deferred tax liability of £29.2m (2023: £25.1m) has been recognised at the standard rate of corporation
tax, as this rate best reflects the rate at which the liability will unwind. The pension surplus, net of deferred
tax, as at 31 December 2024 is £87.7m (2024: £75.5m).
There are no restrictions on the current realisability of the pension surplus. The Group has an explicit right
to a surplus in respect of the TP DB Scheme and, based on the operation of trust law in a winding up of the
BSS DB Scheme following a gradual settlement, has an unconditional right to receive any surplus in the BSS
DB Scheme.
c. Defined benefit scheme obligations
i. Valuation of scheme obligations
Full actuarial valuations of the TP DB scheme and the BSS DB scheme have been carried out as at 30
September 2023. The IAS 19 valuations have been based upon the results of the 30 September 2023
valuations, updated to 31 December 2024 by a qualified actuary.
The defined benefit pension schemes expose the Group to actuarial risks such as investment risk, interest
rate risk and longevity risk. A summary of the risks and the management of those risks is given below and
continued overleaf.
Investment risk
The present value of the defined benefit liabilities of the schemes is calculated using a
discount rate predetermined by reference to high-quality corporate bond yields. If the return
on scheme assets is below this rate it may create a plan deficit.
Interest risk
A decrease in corporate bond yields will increase the schemes’ liabilities, but the effect will be
partially offset by an increase in the return on the schemes’ bond and gilt assets.
Longevity risk
The present value of the liabilities of the schemes is calculated by reference to the best
estimate of mortality of pension scheme members both during and after their employment.
An increase in the life expectancy of the schemes’ members will increase the schemes’
liabilities .
ii. Major actuarial assumptions
At 31 December
2024
At 31 December
2023
Rate of increase of pensions in payment (post 2006 entitlement) 2.95% 2.85%
Discount rate 5.50% 4.55%
Inflation assumption – RPI 3.05% 2.95%
Inflation assumption – CPI 2.55% 2.45%
The yield curve used in setting the discount rate, which includes bonds with an average AA rating and excludes
bonds which are sub-sovereign or issued by universities to reflect the credit risk of the defined benefit schemes.
In respect of longevity, the valuation adopts the S3PA year of birth tables with improvements in life expectancy
to continue in the medium term, with base year appropriate to the member’s date of birth.
The weighted average life expectancy of 65-year-old members for the mortality tables used to determine
pension liabilities at 31 December 2024 was 21.6 years for men and 23.8 years for women (2023: 21.1 years
for men and 23.2 years for women).
iii. Maturity profile of obligations
The weighted average duration of the obligations of the defined benefit pension schemes is 12.5 years, with
approximately 90% of the obligations expected to mature by 2060 and the benefits to be paid on a broadly
straight-line basis over the period to 2060.
iv. Sensitivities
Key estimate over pension assumptions
The Group has chosen to adopt assumptions that the Directors believe are generally in line with
comparable companies. If the difference between actual inflation is greater than assumed, or if long-term
interest rates are lower than assumed, or if the average life expectancy of pensioners increases, then the
pension surplus could be materially greater/lower than currently stated in the balance sheet.
The estimated effects of changing the key assumptions (discount rate, inflation and life expectancy) on the
IAS 19 – Employee Benefits balance sheet position as at 31 December 2024 is given below.
£m
Assumption
TP & BSS Schemes
Consolidated
Discount rate Increase of 0.25% (24.7)
Decrease of 0.25% 25.6
Inflation Increase of 0.25% 14.8
Decrease of 0.25% (15.0)
Longevity Increase of 1 year 27.0
Decrease of 1 year (27.7)
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d. Scheme assets
i. Scheme assets and investment strategy
The assets of the TP DB Scheme and the BSS DB Scheme are held separately from those of the Group in
funds under the control of the schemes’ Trustees.
In June 2010, an agreement was reached with the Trustees of the TP DB scheme to fund £34.7m of
the funding deficit using a Group-controlled special purpose vehicle (“SPV”). The pension scheme is no
longer in a funding deficit so in December 2024 the Trustees agreed to remove the SPV structure. The
asset previously recognised as part of the TP DB scheme’s assets and the Group’s liability have both
been derecognised as a result of this. The pension scheme continues to hold charges over certain of the
properties previously held in the SPV structure.
The investment strategy for the UK schemes are controlled by the Trustee in consultation with the Company.
The scheme assets do not include any of the Group’s own financial instruments. In accordance with the
schemes’ derisked investment strategy, a high proportion of the largest two pension schemes’ assets are
invested in gilts and corporate bonds (“liability-driven investments”).
All fair values are provided by the fund managers. Where available, the fair values are quoted prices (e.g.
listed equity, sovereign debt and corporate bonds). Unlisted investments are included at values provided
by the fund manager in accordance with relevant guidance. Other significant assets are valued based on
observable inputs such as yield curves. The liability-driven investments, which comprise fixed-interest and
index-linked gilts, futures, interest and inflation rate swaps, repurchase agreements and liquidity funds, are
all daily priced and traded.
In June 2023, the High Court handed down a decision in the case of Virgin Media Limited v NTL Pension
Trustees II Limited and others relating to the validity of certain historical pension changes due to the lack
of actuarial confirmation required by law. In July 2024, the Court of Appeal dismissed the appeal brought
by Virgin Media Ltd against aspects of the June 2023 decision. The conclusions reached by the court in
this case may have implications for other UK defined benefit plans. The Company and pension trustees
are currently considering the implications of the case for the TP DB Scheme and the BSS DB scheme.
The defined benefit obligation has been calculated on the basis of the pension benefits currently being
administered, and at this stage the directors do not consider it necessary to make any adjustments as a
result of the Virgin Media case.
ii. Fair value of scheme assets
The major categories and fair values of scheme assets at the end of the reporting period for each category
are as follows:
£m
At 31 December
2024
At 31 December
2023
Level 1:
Cash 71.8 36.3
Level 2:
Equities 0.9 0.8
Secured finance 34.1 37.9
Corporate bonds 522.6 510.5
Diversified growth fund 1.4 1.5
Liability driven investments 876.6 870.4
Repurchase agreements (633.8) (500.7)
Level 3:
SPV asset – 23.2
Secured finance income fund 97. 5 117.0
971.1 1,096.9
e. Defined contribution schemes
The Group operates two defined contribution schemes for all qualifying colleagues. The pension cost, which
represents contributions payable by the Group, amounted to £19.0m in the year (2023: £19.9m).
f. Pension scheme contributions for the year
The total charge to the income statement disclosed in note 32 of £22.1m (2023: £21.9m) comprises defined
benefit scheme current service costs of £3.1m (2023: £2.3m) and £19.0m (2023: £19.9m) of contributions
payable to the defined contribution schemes.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 December 2024
Travis Perkins plc Annual Report and Accounts 2024
CAPITAL
19. Share capital and reserves
Accounting policy
Equity instruments represent the ordinary share capital of the Group and are recorded at the proceeds
received, net of directly attributable incremental issue costs.
Consideration paid by the Group for its own shares is deducted from total shareholders’ equity. Where
such shares vest to colleagues under the terms of the Group’s share incentive schemes or the Group’s
Sharesave schemes or are sold, any consideration received is included in shareholders’ equity.
a. Share capital
Ordinary shares
Authorised, issued and fully paid
No. £m
At 1 January and 31 December 2024 212,509,334 23.8
The Company has one class of ordinary share that carries no right to fixed income. The holders of ordinary
shares are entitled to receive dividends as declared and are entitled to one vote per share at meetings of the
Company. All shares rank equally with regard to the Company’s residual assets.
b . Own shares
No. 2024 2023
At 1 January 1,668,682 2,596,684
Reissued (476,499) (928,002)
At 31 December 1,192,183 1,668,682
The own shares are held by the Employee Share Ownership Trust to satisfy options under the Group’s share
option schemes. None of the own shares have been allocated to grants of executive options and all rights
attaching to the shares are suspended until the shares are reissued .
c. Reserves
A description of the nature and purpose of each reserve is given below:
• The share premium represents the amounts above the nominal value received for shares sold.
• The cash flow hedge reserve represents the cumulative gain or loss on the fair value of effective hedging
instruments used in cash flow hedges which have not yet been reclassified to profit or loss.
• The merger reserve represents the premium on equity instruments issued as consideration for the
acquisition of BSS.
• The revaluation reserve represents the revaluation surplus that arose from property revaluations in 1999 and
prior years.
• The own shares reserve represents the cost of shares purchased in the market and held by the Employee
Share Ownership Trust to satisfy options under the Group’s share option schemes.
• The foreign exchange reserve represents the exchange differences recognised on translation of the assets
and liabilities of the operations that have a functional currency different from the Group.
• Other reserves relates to a capital redemption reserve arising as a result of the share buybacks and the
subsequent cancellation of shares.
• Retained earnings represents cumulative results for the Group less cumulative dividends paid.
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20. Earnings per share
a. Basic and diluted earnings per share
£m 2024
2023
(re-presented)
Profit/(loss) attributable to the owners of the parent
– from continuing operations (40.6) 89.5
– from discontinued operations (36.8) (51.4)
Weighted average number of shares for the purposes of basic earnings per
share 211,106,493 210,530,726
Dilutive effect of share options on potential ordinary shares 3,794,915 3,616,786
Weighted average number of ordinary shares for the purposes of diluted
earnings per share 214,901,408 214,147,512
Earnings/(loss) per share
– from continuing operations (19.2)p 42.5p
– from discontinued operations (17.4)p (24.4)p
– total (36.6)p 18.1p
Diluted earnings/(loss) per share
– from continuing operations (19.2)p 41.8p
– from discontinued operations (17.4)p (24.0)p
– total (36.6)p 17. 8p
A total of 159,768 share options (2023: 620,310 share options) had an exercise price in excess of the
average market value of the shares during the year. As a result, these share options were excluded from the
calculation of diluted earnings per share .
b. Adjusted earnings per share
Adjusted earnings per share is calculated by excluding the effect of adjusting items, the amortisation of
acquired intangible assets from earnings and the loss from discontinued operations .
£m 2024
2023
(re-presented)
(Loss)/earnings for the purposes of earnings per share (77.4) 38.1
Adjusting items 139.1 26.9
Amortisation of acquired intangible assets 10.4 10.5
Tax on adjusting items (29.0) (9.7)
Tax on amortisation of acquired intangible assets (2.6) (2.6)
Loss from discontinued operations 36.8 51.4
Earnings for adjusted earnings per share 7 7.3 114.6
Adjusted earnings per share 36.6p 54.4p
21. Dividends
Accounting policy
Dividends proposed by the Board of Directors and unpaid at the period end are not recognised in the
financial statements until they have been approved by shareholders at the Annual General Meeting.
Amounts were recognised in the financial statements as distributions to equity shareholders as follows:
£m 2024 2023
Final dividend for the year ended 31 December 2023 of 5.5 pence
(2022: 26.5 pence) per ordinary share 11.6 55.8
Interim dividend for the year ended 31 December 2024 of 5.5 pence
(2023: 12.5 pence) per ordinary share 11.6 26.3
Total dividend recognised during the year 23.2 82.1
The Directors are recommending a final dividend of 9.0 pence in respect of the year ended 31 December
2024. The anticipated cash payment in respect of the proposed final dividend is £19.1m (2023: £11.7m).
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 December 2024
Travis Perkins plc Annual Report and Accounts 2024
CAPITAL continued
22. Borrowings
Accounting policy
Interest-bearing bank loans and overdrafts, loan notes and other loans are recognised in the balance
sheet at amortised cost. Finance charges associated with arranging non-equity funding are recognised in
the income statement over the life of the facility. All other borrowing costs are recognised in the income
statement in accordance with the effective interest rate method.
A summary of the Group’s objectives, policies, procedures and strategies with regard to financial
instruments and capital management can be found in the Strategic Report on page 24. At 31 December
2024, all borrowings were denominated in sterling (2023: sterling).
a. Summary
£m 2024 2023
Liability to pension scheme – 24.6
Bonds 250.0 250.0
Term loan 75.0 75.0
Senior unsecured notes 100.0 100.0
Overdraft 13.2 –
Finance charges netted off borrowings (3.2) (4.5)
435.0 445.1
Current liabilities 13.2 –
Non-current liabilities 421.8 445.1
435.0 445.1
The Group’s term loan, senior unsecured notes and committed revolving credit facility are subject to two
financial covenants:
• Leverage: Net debt/Adjusted EBITDA < 4.0x.
• Interest cover: Adjusted operating profit/Net interest payable > 2.0x .
b. Analysis of other borrowings
£m 2024 2023
Borrowings repayable:
On demand or within one year 13.2 –
More than one year, but not more than five years 325.0 325.0
More than five years 100.0 124.6
Gross borrowings 438.2 449.6
Unamortised fees (3.2) (4.5)
435.0 445.1
c. Facilities
At 31 December 2024, the following facilities were available:
£m 2024 2023
Drawn facilities:
£250m bond 250.0 250.0
£75m term loan 75.0 75.0
£100m senior unsecured notes 100.0 100.0
425.0 425.0
Undrawn facilities:
Five-year committed revolving credit facility 375.0 375.0
Bank overdrafts 15.0 15.0
390.0 390.0
The disclosures in note 22(c) do not include leases or the effect of finance charges netted off bank debt.
The overdraft balance of £13.2m on 31 December 2024 formed part of the Group’s notional cash pool and
its aggregate cash position of £231.2m. The Group’s £15.0m overdraft facility and the Group’s £375.0m
revolving credit facility were undrawn as at 31 December 2024 .
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d. Interest
The weighted average interest rates received on assets and paid on liabilities were as follows:
% 2024 2023
Assets:
Short-term deposits 5.0 4.7
Liabilities:
2026 £250m bond 3.8 3.8
£75m term loan 4.6 4.6
£100m senior unsecured notes 6.2 6.2
Bank loans and overdrafts 6.0 8.7
In respect of income earning financial assets and interest-bearing financial liabilities, the following table
indicates their effective interest rates at the balance sheet date:
2024 2023
Effective
interest rate £m
Effective
interest rate £m
Assets:
Short-term deposits 4.4% 200.0 5.2% 101.5
Liabilities:
2026 £250m bond 3.8% 250.0 3.8% 250.0
Term loan 4.6% 75.0 4.6% 75.0
Senior unsecured notes 6.2% 100.0 6.2% 100.0
425.0 425.0
e. Fair values
The book values of financial assets and liabilities have been determined based on amortised cost. For
the majority of these, the fair values are not materially different from their carrying amounts. Significant
differences were identified for the Group’s £250m of bonds as at 31 December 2024, where the assessed
fair value based on quoted mid-market prices was £244.8m (2023: £250m of bonds with an assessed fair
value of £236.9m).
Details of the fair values of derivatives are given in notes 27 and 28.
f. Guarantees and security
There are cross guarantees on the overdrafts between Group companies.
Travis Perkins Trading Company Limited, Travis Perkins (Properties) Limited, TP Property Company
Limited, CCF Limited, Keyline Civils Specialist Limited, Toolstation Limited and The BSS Group Limited are
guarantors of the following facilities advanced to Travis Perkins plc:
• £250m bond.
• £75m term loan.
• £100m senior unsecured notes.
• £375m revolving credit facility (2023: £375m).
• Currency derivatives (note 28).
The Group companies have entered into other guarantee and counter-indemnity arrangements in respect
of guarantees issued in favour of Group companies by several banks amounting to approximately £31.8m
(2023: £31.8m).
The interest rate swap is guaranteed by Travis Perkins Trading Company Limited, Travis Perkins (Properties)
Limited, CCF Limited and Keyline Civils Specialist Limited.
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OTHER INFORMATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 December 2024
Travis Perkins plc Annual Report and Accounts 2024
CAPITAL CONTINUED
23. Net debt
Accounting policy
Cash and cash equivalents comprise cash balances and cash deposits with an original maturity of three
months or less held by the Group and Company, net of overdrafts. The carrying amount of these assets
approximates to their fair value.
Movement in net debt
Net debt is defined as the sum of current and non-current debt, less cash and cash equivalents.
£m
Cash and cash
equivalents,
including
overdraft Leases Term loan
Senior
unsecured
notes
Liability to
pension
scheme Total
At 1 January 2023 (223.2) 512.6 73.4 429.0 26.7 818.5
Additions to leases – 185.5 – – – 185.5
Disposals of leases – (5.2) – – – (5.2)
Cash flow 91.7 (110.7) – (80.0) (3.7) (102.7)
Finance charges and fees – – (1.9) – – (1.9)
Discount unwind on liability
to pension scheme – – – – 1.6 1.6
Discount unwind on lease
liabilities – 26.2 – – – 26.2
At 1 January 2024 (131.5) 608.4 71.5 349.0 24.6 922.0
Additions to leases – 152.1 – – – 152.1
Disposals of leases – (8.6) – – – (8.6)
Cash flow (99.7) (127.4) – – – (227.1)
Finance charges and fees – – 0.9 0.4 – 1.3
Loan Settlement – – – – (24.6) (24.6)
Discount unwind
on lease liabilities – 30.1 – – – 30.1
31 December 2024 (231.2) 654.6 72.4 349.4 – 845.2
Cash and cash equivalents comprises short-term deposits of £200.0m (2023: £101.5m), cash of £44.4m
(2023: £30.0m) and overdraft of £13.2m (2023: £nil). Net debt before lease liability was £190.6m (2023:
£313.6m).
24. Cash flow metrics
a. Free cash flow
£m 2024
2023
(re-presented)
Adjusted operating profit 151.8 198.1
Less: Profit on disposal of properties (11.3) (15.1)
Adjusted operating profit excluding property profit 140.5 183.0
Share-based payments 11.7 14.6
Other net interest paid (19.5) (25.0)
Interest on lease liabilities (29.6) (25.6)
Income tax paid (20.9) (40.7)
Movement on working capital 5.5 (22.6)
Depreciation of property, plant and equipment 79.8 79.1
Amortisation and impairment of internally-generated intangibles 3.6 4.6
Capital expenditure excluding freehold purchases (63.8) (107.2)
Disposal of plant and equipment 1.2 2.0
Free cash flow 108.5 62.2
b. Cash conversion
£m 2024
2023
(re-presented)
Adjusted operating profit excluding property profit 140.5 183.0
Movement on working capital 5.5 (22.6)
Depreciation of property, plant and equipment 79.8 79.1
Amortisation and impairment of internally-generated intangibles 3.6 4.6
Share-based payments 11.7 14.6
Capital expenditure excluding freehold purchases (63.8) (107.2)
177. 3 151.5
Cash conversion 126% 83%
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25. Net debt to adjusted EBITDA
Net debt to adjusted EBITDA is defined as the ratio of net debt (note 23) to earnings before interest, tax,
depreciation, amortisation and adjusting items (“adjusted EBITDA”) and is used in one of the Group’s debt
covenants.
£m 2024 2023
Operating profit 2.3 109.9
Depreciation and amortisation 190.5 186.5
Adjusting items 139.1 60.0
Adjusted EBITDA 331.9 356.4
Net debt 845.2 922.0
Net debt to adjusted EBITDA 2.5x 2.6x
In accordance with the Group’s debt covenant definitions, the comparative year ended 31 December 2023
has not been re-presented for this APM to exclude the result of the Toolstation France business.
26. Return on capital ratios
Group return on capital employed is calculated as follows:
£m 2024
2023
(re-presented)
Operating profit 2.3 160.7
Amortisation of acquired intangible assets 10.4 10.5
Adjusting items 139.1 26.9
Adjusted operating profit 151.8 198.1
Opening net assets 2,040.3 2,102.2
Net pension surplus (75.5) (102.0)
Net debt 922.0 818.5
Opening capital employed 2,886.8 2,818.7
Closing net assets 1,974.1 2,040.3
Net pension surplus (87.7) (75.5)
Net debt 845.2 922.0
Closing capital employed 2,731.6 2,886.8
Average capital employed 2,809.2 2,852.8
Group return on capital employed is calculated as follows:
£m 2024
2023
(re-presented)
Adjusted operating profit 151.8 198.1
Average capital employed 2,809.2 2,852.8
Return on capital employed 5.4% 6.9%
RISK
27. Financial risk management
The overall aim of the Group’s financial risk management policies is to minimise potential adverse effects on
financial performance and net assets. The Group manages the principal financial and treasury risks within a
framework of policies and operating parameters reviewed and approved annually by the Board of Directors.
The Group does not enter into speculative transactions. The Group’s risk management policy is further
discussed on page 24. The Group’s accounting policy for its cash flow hedges is set out in note 28.
a. Derivatives
During 2022 the Group obtained a 5-year term loan facility for £75m and at the same time entered into an
equal interest rate swap arrangement to hedge the full variable component of the interest rate for the life of
the instrument. The risk management objective is to hedge against the fair value of the variable interest rate
element of the loan facility. The interest rate swap is a derivative measured at fair value and is designated in
the hedging relationship in its entirety, therefore the hedging instrument is eligible for hedge accounting.
The Group has the following derivative financial instruments in the balance sheet:
£m 2024 2023
Non-current assets
Interest rate swap – cash flow hedge 3.3 2.9
Total non-current derivative financial instrument assets 3.3 2.9
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OTHER INFORMATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 December 2024
Travis Perkins plc Annual Report and Accounts 2024
RISK continued
27. Financial risk management continued
a. Derivatives continued
The Group’s hedging reserve relates to the following hedge instrument:
£m Interest rate swaps
At 1 January 2023. 3.2
Change in fair value of hedging instrument recognised in OCI (1.4)
Deferred tax 0.4
At 1 January 2024 2.2
Change in fair value of hedging instrument recognised in OCI 0.4
Deferred tax (0.1)
At 31 December 2024 2.5
A net gain of £0.8m (2023: loss £0.2m) on foreign currency forwards not qualifying as hedges was
recognised in the Group’s profit and loss and included in other losses. Hedge effectiveness was determined
at the inception of the swap arrangement and through prospective effectiveness assessments, to ensure that
an economic relationship exists between the loan facility and the interest rate swap. As both the loan and
interest rate swap have the same critical terms, with the value, term and payment timings aligned, there is no
portion of the hedge which is considered to be ineffective.
Swaps currently in place cover 100% of the variable term loan principal outstanding. The fixed interest
rate of the swap is 2.673%. The interest rate of the term loan consists of a variable element based on the
Sterling Overnight Index Average (‘SONIA’) and a margin between 1.8% – 2.4%. The swap contracts require
settlement of the net interest receivable or payable every 6 months and coincides with the dates on which
payment is due on the underlying term loan.
The effects of the interest rate swaps of the Group’s financial position and performance are as follows:
£m 2024 2023
Carrying amount (non-current assets) 3.3 2.9
Notional amount 75.0 75.0
Maturity date 15 August 2027 15 August 2027
Hedge ratio 1:1 1:1
Change in fair value of hedging instruments for the year 0.4 (1.4)
Weighted average hedged rate for the year 5.1% 4.6%
28. Financial instruments
Accounting policy
Investments and other financial assets classification
The Group classifies its financial assets in the following measurement categories:
• Those to be measured subsequently at fair value (either through Other Comprehensive Income ‘‘FVOCI’’,
or through profit or loss “FVTPL”)
• Those to be measured at amortised cost
The classification depends on the business model for managing the financial assets and the contractual
terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For
investments in equity instruments that are not held for trading, this will depend on whether the Group
has made an irrevocable election at the time of initial recognition to account for the equity investment at
FVTPL or at FVOCI.
The Group reclassifies debt investments when and only when its business model for managing those
assets changes.
Measurement
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial
asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the financial asset.
Transaction costs of financial assets carried at FVTPL are expensed in profit or loss.
Debt instruments
Subsequent measurement of debt instruments depends on the Group’s business model for managing
the asset and the cash flow characteristics of the asset. There are two measurement categories into
which the Group classifies its debt instruments:
• Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows
represent solely payments of principal and interest are measured at amortised cost. Interest income
from these financial assets is included in finance income using the effective interest rate method. Any
gain or loss arising on derecognition is recognised directly in profit or loss and presented in finance
income or finance costs, together with foreign exchange gains and losses. Impairment losses are
presented as a separate line item in the income statement.
• FVTPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVTPL. A gain
or loss on a debt instrument that is subsequently measured at FVTPL is recognised in profit or loss and
presented net within other gains and losses in the period in which it arises .
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Equity instruments
The Group subsequently measures all equity investments at fair value. Where the Group’s management
has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent
reclassification of fair value gains and losses to profit or loss following the derecognition of the
investment. Dividends from such investments continue to be recognised in profit or loss when the
Group’s right to receive payments is established.
Changes in the fair value of financial assets at FVTPL are recognised in finance income or finance costs
in the income statement as applicable. Impairment losses (and the reversal of impairment losses) on
equity investments measured at FVOCI are not reported separately from other changes in fair value.
Impairment
From 1 January 2018, the Group assesses on a forward-looking basis the expected credit losses
associated with its debt instruments carried at amortised cost and FVOCI. The impairment methodology
applied depends on whether there has been a significant increase in credit risk. For trade receivables,
the Group applies the simplified approach permitted by IFRS 9 – Financial Instruments, which requires
expected lifetime losses to be recognised from initial recognition of the receivables.
Derivative financial instruments
The Group uses derivative financial instruments to hedge its exposure to interest rate and foreign
exchange risks arising from financing activities. The Group does not enter into speculative financial
instruments. In accordance with its treasury policy, the Group does not hold or issue derivative financial
instruments for derivative trading purposes.
Derivative financial instruments are stated at fair value. The fair value of derivative financial instruments
is the estimated amount the Group would receive or pay to transfer to a market participant the derivative
at the balance sheet date, taking into account current interest and exchange rates and the current
creditworthiness of the counterparties.
Where derivatives do not qualify for hedge accounting, any gains or losses on re-measurement are
immediately recognised in the Statement of Comprehensive Income. Where derivatives qualify for hedge
accounting, recognition of any resultant gain or loss depends on the nature of the hedge relationship and
the items being hedged.
In order to qualify for hedge accounting, the Company is required to document from inception, the
relationship between the item being hedged and the hedging instrument. The Company is also required to
document and demonstrate an assessment of the relationship between the hedged item and the hedging
instrument, which shows that the hedge will be highly effective on an on-going basis. This effectiveness
testing is performed at each reporting date to ensure that the hedge remains highly effective.
Derivative financial instruments are classified as cash flow hedges when they hedge the Company’s
exposure to variability in cash flows that are either attributable to a particular risk associated with a
recognised asset or liability, or a highly probable forecasted transaction. The effective element of any
gain or loss from re-measuring the derivative instrument is recognised directly in equity .
The associated cumulative gain or loss is removed from equity and recognised in the Statement of
Comprehensive Income in the same period during which the hedged transaction affects the Statement
of Comprehensive Income. The classification of the effective portion when recognised in the Statement
of Comprehensive Income is the same as the classification of the hedged transaction. Any element of
the re-measurement criteria of the derivative instrument which does not meet the criteria for an effective
hedge is recognised immediately in the Statement of Comprehensive income.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or
exercised, or no longer qualifies for hedge accounting or is de-designated. At that point in time, any
cumulative gain or loss on the hedging instrument recognised in equity is retained in equity until the
forecasted transaction occurs or the original hedged item affects the Statement of Comprehensive
Income. If a forecasted hedged transaction is no longer expected to occur, the net cumulative gain or loss
recognised in equity is transferred to the Statement of Comprehensive Income.
Foreign currency forward contracts are marked-to-market at the balance sheet date, with any gains or
losses being taken through the income statement. Derivatives embedded in commercial contracts are
treated as separate derivatives when their risks and characteristics are not closely related to those of the
underlying contracts, with unrealised gains or losses being reported in the income statement.
a. The carrying value of categories of financial instruments
£m 2024 2023
Financial assets:
Mandatorily at FVTPL 0.5 –
Loans and receivables (including cash and cash equivalents) at amortised
cost 911.3 786.3
Designated instrument-by-instrument as either FVTPL or FVOCI 3.3 2.9
915.1 789.2
Financial liabilities:
Mandatorily at FVTPL – 0.4
Borrowings at amortised cost 435.0 445.1
Trade and other payables (including overdrafts) at amortised cost 625.7 653.2
1,060.7 1,098.7
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 December 2024
Travis Perkins plc Annual Report and Accounts 2024
c. Interest risk management
The Group is exposed to interest rate risk as entities in the Group borrow funds at both fixed and floating
interest rates. The risk is managed by the Group by maintaining an appropriate mix between fixed and
floating rate borrowings and by the use of interest rate swap contracts and forward interest rate contracts
when appropriate. Hedging activities are evaluated regularly to align with interest rate views and defined
risk appetite, ensuring optimal hedging strategies are applied, by either positioning the balance sheet or
protecting interest expense through different interest rate cycles.
In 2022 the Group entered into an interest rate swap arrangement to hedge the variable interest rate risk on
a £75m 5-year loan facility. The risk management objective is to hedge against the fair value of the variable
interest rate element of the loan facility. The interest rate swap is a derivative measured at fair value and is
designated in the hedging relationship in its entirety.
d. Currency forward contracts
The Group acquires goods for sale from overseas which, when not denominated in sterling, are paid for
principally in US dollars and euros. The Group has entered into forward foreign exchange contracts (all of
which are less than one year in duration) to buy US dollars and euros to hedge the exchange rate risk arising
from these anticipated future purchases. At the balance sheet date the total notional value of contracts to
which the Group was committed was €nil and US$24.0m (2023: €6.0m and US$21.5m). The fair value of
these derivatives was £0.5m asset (2023: £0.4m liability). These contracts are not designated cash flow
hedges and accordingly the fair value movement has been reflected in the income statement.
e. Interest rate sensitivity analysis
A sensitivity analysis has been determined based on the exposure to interest rates for both derivatives
and non-derivative financial instruments at the balance sheet date. For floating rate liabilities, the analysis
is prepared assuming that the amount of liability outstanding at the balance sheet date was outstanding
for the whole year. A 1.0% increase or decrease is used when reporting interest rate risk internally to key
management personnel.
At 31 December 2024 the Group had no floating rate liabilities except for its £75m 5-year term loan facility
for which the Group entered into an interest rate swap arrangement to hedge the full variable component
of the interest rate for the life of the instrument. There was £200m on short-term deposit at 31 December
2024 (2023: £101.5m). A 1.0% increase or decrease in interest rates, with all other variables held constant,
would have the following impact on:
• Profit before taxation for the year ended 31 December 2024 would have increased or decreased by £2.0m
(2023: increased or decreased by £1.0m) due to the short-term deposits.
• Net equity would have increased or decreased by £1.5m (2023: increased or decreased by £0.8m).
RISK CONTINUED
28. Financial instruments continued
a. The carrying value of categories of financial instruments continued
Loans and receivables exclude prepayments of £80.4m (2023: £34.8m). Trade and other payables exclude
taxation and social security and accruals and deferred income totalling £212.5m (2023: £142.2m). The
carrying amount of financial assets recorded in the financial statements, which is net of impairment losses,
represents the Group’s maximum exposure to credit risk. The Group has considered the impact of credit risk
on its financial instruments and because the counterparties are banks with strong credit ratings considers its
impact to be immaterial. The issuer credit ratings of the banks where the Group’s deposits are held ranges
from A to AA- (S&P), A1 to Aa2 (Moody’s), and A to AA- (Fitch).
b. Fair value of financial instruments
Financial assets and financial liabilities designated as FVTPL comprise foreign currency forward contracts
and are measured using quoted forward exchange rates.
The following table provides an analysis of financial instruments that are measured subsequent to initial
recognition at fair value, grouped into levels 1 to 3 based on the degree to which the fair value is observable:
• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for
identical assets or liabilities.
• Level 2 fair value measurements are those derived from inputs other than quoted prices included within
Level 1 that are observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived from
prices).
• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the
asset or liability that are not based on observable market data (unobservable inputs).
There were no transfers between levels during the year.
£m 2024 2023
Included in assets:
Level 2: Foreign currency forward contracts at fair value through profit and loss 0.5 –
Level 2: Interest rate swap 3.3 2.9
Included in liabilities:
Level 2: Foreign currency forward contracts at fair value through profit and loss – (0.4)
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f. Liquidity analysis
The following table details the Group’s liquidity analysis for its derivative financial instruments and other
financial liabilities. The table has been drawn up based on the undiscounted net cash flows on the derivative
instruments that settle on a net basis and the undiscounted gross cash flows on those derivatives that
require gross settlement. When the amount payable or receivable is not fixed, the amount disclosed has
been determined by reference to the projected interest and foreign currency rates as illustrated by the yield
curves existing at the reporting date.
£m
2024
0–1 year 1–2 years 2–5 years 5+ years Total
Total gross settled: Foreign exchange
forward contracts (18.7) – – – (18.7)
Total net settled: Interest rate swap – cash
flow hedge 1.1 0.9 0.7 – 2.7
Total derivative financial instruments (17.6) 0.9 0.7 – (16.0)
Net settled:
Borrowings (30.6) (270.6) (132.7) (72.2) (506.1)
Trade and other payables at amortised
cost (625.7) – – – (625.7)
Leases (119.9) (208.0) (161.3) (336.2) (825.4)
Total financial instruments (776.2) (478.6) (294.0) (408.4) (1 ,957. 2)
£m
2023
0–1 year 1–2 years 2–5 years 5+ years Total
Total gross settled: Foreign exchange
forward contracts (22.9) – – – (22.9)
Total net settled: Interest rate swap – cash
flow hedge 1.9 1.9 3.1 – 6.9
Total derivative financial instruments (21.0) 1.9 3.1 – (16.0)
Net settled:
Borrowings (24.9) (24.9) (366.2) (143.9) (559.9)
Trade and other payables at amortised
cost (653.2) – – – (653.2)
Leases (108.9) (101.1) (237.8) (316.6) (764.4)
Total financial instruments (787.0) (126.0) (604.0) (460.5) (1,97 7. 5)
29. Impairment
Accounting policy
Impairment of tangible and intangible assets
The carrying amounts of the Group’s tangible and intangible assets with a definite useful life are reviewed
at each balance sheet date to determine whether there is any indication of impairment to their value.
If such an indication exists, the asset’s recoverable amount is estimated and compared to its carrying
value. Where the asset does not generate cash flows that are independent from other assets, the Group
estimates the recoverable amount of the CGU to which the asset belongs. The Group’s CGUs are the
branches of its Merchanting and Toolstation businesses and the Staircraft business. The recoverable
amount of an asset is the greater of its fair value less disposal cost and its value-in-use (the present
value of the future cash flows that the asset is expected to generate). In determining value in use the
present value of future cash flows is discounted using a pre-tax discount rate that reflects current market
assessments of the time-value of money in relation to the period of the investment and the risks specific
to the asset concerned.
Where the carrying value exceeds the recoverable amount a provision for the impairment loss is
established with a charge being made to the income statement. When the reasons for an impairment
no longer exist the impairment is reversed in the income statement up to the net book value that the
relevant asset would have had if it had not been impaired and if it had been depreciated, except in
respect of goodwill for which impairments are not reversed.
For intangible assets that have an indefinite useful life the recoverable amount is estimated on an annual
basis.
a. Measuring recoverable amounts
The recoverable amounts of the goodwill and other non-monetary assets with indefinite useful lives are
determined for all CGUs and CGU groupings from value-in-use calculations, except for the Toolstation
Benelux CGU grouping and the Staircraft CGU, where fair value less cost of disposal (“FVLCD”) calculations
have been used. The Toolstation Benelux FVLCD model is a discounted cash flow model and the Staircraft
FVLCD model is an EBITDA multiple model. The different FVLCD methods for Toolstation Benelux and
Staircraft reflect Toolstation Benelux being a high-growth loss-making business and Staircraft being a
relatively mature business. The valuations are considered to be level 3 in the fair value hierarchy due to
unobservable inputs used in the valuation.
The key financial assumptions for the value-in-use models and the Toolstation Benelux discounted cash flow
model are those regarding the discount rate and the terminal growth rate. The key operating assumptions for
these models are sales growth and operating margin percentage. The key assumption for the Staircraft CGU
calculation is that a market participant would use an EBITDA multiple of 8x. Management estimates pre-tax
discount rates that reflect current market assessments of the time-value of money and the risks specific to
the CGU groupings that are not reflected in the cash flow projections .
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 December 2024
Travis Perkins plc Annual Report and Accounts 2024
• Operating margin percentages are forecast in the context of the sales growth assumptions and are based on
historical experience of operating margins, adjusted for the impact of changes to product costs and
cost-saving initiatives.
For the less-mature Toolstation Benelux CGU grouping, the key operating assumption is future sales growth.
This assumption is set in the context of the store opening profile and historical data from the Toolstation UK
and Toolstation Benelux businesses on the store maturity profile.
Cash flows beyond the strategic plan periods (2029 and beyond for the UK CGUs and 2030 and beyond
for the Toolstation Benelux CGU) have been determined using the terminal growth rate. The longer period
used in the FVLCD model for the Toolstation Benelux CGU is consistent with market practice for valuing
high-growth loss-making businesses. Corporate costs are allocated to CGUs on a pro-rata basis per each
CGU’s sales.
Results
The recoverable amount of goodwill and intangible assets with indefinite useful lives was in excess of their
book value in all CGUs and CGU groupings and therefore no impairments have been recognised in respect
of these CGUs and CGU groupings, except for the Staircraft CGU in respect of which a £32.7m impairment
charge has been recognised.
Indications of impairment were identified for some Merchanting branches, each of which is a CGU, and as a
result of the impairment reviews performed for these branches an impairment charge of £62.7m has been
recognised, principally in respect of certain Travis Perkins General Merchant and CCF branches. All these
impairments relate to the Merchanting segment. The annual impairment reviews for branches in the Group’s
other businesses did not result in any impairments.
In 2023 an impairment charge of £33.1m was recognised in respect of the Toolstation France CGU grouping
and of £7.6m in respect of certain Benchmarx branches.
There are no reasonably possible changes in the key assumptions used in the impairment reviews that
would cause the recoverable amounts to be lower than the carrying amounts except in respect of the
Toolstation Benelux, Travis Perkins General Merchant and CCF CGU groupings. Sensitivity disclosures are
provided for these CGU groupings.
Staircraft impairment
Following the annual impairment review of goodwill and intangible assets, an impairment of £32.7m has
been recognised in respect of the Staircraft CGU. Trading conditions in its market have been challenging and
as a consequence a lower EBITDA figure has been used in the FVLCD calculation. This impairment charge
relates to £1.9m of right-of-use assets, £3.6m of tangible fixed assets, £23.8m of goodwill and £3.4m of
other acquisition-related intangible fixed assets. The recoverable amount of these fixed assets relating to the
Staircraft business is now £22.0m. There are no reasonably possible changes in the assumptions used in
this impairment review that would result in a materially different impairment charge.
RISK CONTINUED
29. Impairment continued
In developing these assumptions, management has considered the possible impacts of climate risks. This
has included consideration of the impact of climate risks on the Group’s required capital expenditure, on
energy costs directly in the business and the supply chain and the impact of the changes on the Group’s
markets and customers.
Key financial assumptions
The key financial assumptions used in the estimation of the recoverable amount are set out below. The
values assigned to the key financial assumptions represent management’s assessment of current market
conditions and future trends and have been based on historical data from both external and internal sources.
2024 2023
Pre-tax discount rate 11.7% – 12.9% 12.1% – 13.3%
Terminal growth rate 1.6% – 2.0% 2.0%
The pre-tax discount rate used in the estimation of the recoverable amount for the Travis Perkins General
Merchant and CCF CGU groupings was 12.9% and for the Toolstation Benelux CGU grouping was 11.7%.
Management determined the values assigned to these financial assumptions as follows:
• Pre-tax discount rates: These are calculated by reference to the weighted average cost of capital (“WACC”) of
the Group and reflect specific risks relating to the Group’s industries and the countries in which the Group
operates. The pre-tax discount rate is adjusted for risks not adjusted for in the cash flow forecasts, including
risks related to the industry of each CGU.
• Terminal growth rate: This is the weighted average growth rate used to extrapolate cash flows beyond the
budget period. For the UK CGUs, this represents the forecast inflation growth for the final year considered in
the Bank of England’s long-term inflation target. For Toolstation Benelux, this represents the GDP growth
forecast for the Netherlands in the final available forecast year in the IMF’s World Economic Outlook Database.
Key operating assumptions
Cash flow forecasts are derived from the most recent Board-approved strategic plans, updated for changes
in current trading conditions and adjusted for risks relevant to the cash flows. The key operating assumptions
used in the estimation of future cash flows for the UK CGUs and CGU groupings are:
• Sales growth rates on which the approved corporate plans are based and which are derived from a variety of
sources that provide market volume forecasts, including construction and consumer outlook reports, current
and forecast housing-market transaction numbers and mortgage-approval levels. The Directors consider
this to be the principal operating assumption as it determines management’s approach to the interlinked
factors underlying the operating margin percentage .
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Branch impairments
The impairment reviews for branches in the Merchanting businesses have resulted in an impairment charge
of £62.7m being recognised. This charge consists of £49.5m in respect of Travis Perkins General Merchant
branches, £7.5m in respect of CCF branches and £5.7m in respect of other Merchanting CGUs. It reflects
the challenging trading conditions and extended period of low market volumes in the UK construction sector.
The impairment charge relates to £26.7m of right-of-use assets and £36.0m of tangible fixed assets. The
remaining carrying value of assets related to the branches subject to an impairment charge is £308.7m.
Sensitivity disclosures
The recoverable amounts calculated in the impairment reviews of the Travis Perkins General Merchant, CCF
and Toolstation Benelux CGU groupings exceeded the carrying amounts as below.
Carrying amount Headroom
Travis Perkins General Merchant 1,188.4 182.5
CCF 113.1 46.8
Toolstation Benelux 126.1 25.4
Whilst the Directors believe the assumptions are realistic, there are reasonably possible changes in the
key assumptions that would cause the recoverable amounts of these CGUs to be lower than the carrying
amounts. The key variables applied to the value-in-use calculations for Travis Perkins General Merchant and
CCF and the fair value less cost of disposal calculation for Toolstation Benelux, and the value at which the
recoverable amount would be equal to the carrying amount for each CGU, were:
Travis Perkins
General Merchant CCF Toolstation Benelux
Assumption Sensitivity Assumption Sensitivity Assumption Sensitivity
Pre-tax discount rate 12.9% 14.5% 12.9% 16.7% 11.7% 13.2%
Average sales growth 3.5% 3.3% 7.4% 7. 2% 13.8% 12.4%
Operating margin 6.0% 4.9% 3.3% 2.3% n/a n/a
The average sales growth assumptions, which are compound annual growth rates, reflect an expectation
that the significant reduction in construction market volumes in the UK and in the Netherlands since 2021
will be partially reversed over the forecast period. The operating margin figure disclosed is for the terminal
year of the relevant model. The models are not sensitive to reasonably possible changes to the operating
margin in years other than the terminal year. These impairment reviews are not sensitive to reasonably
possible changes to the terminal growth rate. All other variables have been held equal.
There are no reasonably possible changes in the assumptions used in the impairment reviews of Staircraft
and the Merchanting branches that would result in a materially different impairment charge.
Key estimates over assumptions used in value-in-use calculations
In testing for impairment, the recoverable amount of the Toolstation Benelux CGU has been determined
by reference to the FVLCD of the CGU grouping. The recoverable amounts of the Travis Perkins General
Merchant and CCF CGU groupings have been determined by reference to their value-in-use. In producing
these estimates, the Directors have made certain estimates concerning discount rates, future cash flows
and the future development of the businesses that are consistent with the 2024 strategic plans and the
businesses’ 2025 budgets. Whilst the Directors consider the assumptions to be realistic, should actual
results, including those for future sales growth, be different from expectations, for instance due to a
worsening of the British economy (or the Dutch or Belgian economy in the case of the Toolstation Benelux
CGU), then it is possible that the value of goodwill and other intangible and tangible assets included in the
balance sheet could become impaired or the impairment charge could be different. The range of reasonably
possible outcomes includes the impairment charges detailed in the scenarios in the table below.
CGU or CGU grouping
Carrying value of
assets (£m) Reasonably possible scenario
Impairment charge
in the scenario (£m)
Toolstation Benelux 126.1 Pre-tax discount rate is 100bps
higher and sales are cumulatively
10% lower over the period of the
modelled cash flows
18.2
Travis Perkins General
Merchant 1,188.4
Post-tax discount rate is 100bps
higher, sales are up to 5% lower
during the period of the modelled
cash flows and the operating
margin in the terminal year is
50bps lower
99.3
CCF 113.1 1.0
30. Capital commitments
£m 2024 2023
Contracted for but not provided in the accounts 26.4 9.9
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OTHER INFORMATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 December 2024
Travis Perkins plc Annual Report and Accounts 2024
PEOPLE
32. Staff costs
a. Average number of persons employed
The average monthly number of persons employed (including Executive Directors):
No. 2024 2023
Sales and distribution 16,243 17,703
Administration 1,351 1,469
17,594 19,172
The average monthly number of persons employed (including Executive Directors) in 2023 excluding the
discontinued operations was 18,831.
b. Aggregate remuneration
£m 2024
2023
(re-presented)
Wages and salaries 565.1 576.5
Social security costs 52.5 55.5
Pension costs (note 18) 22.1 21.9
Share-based payments (note 33) 11.7 14.6
651.4 668.5
Director’s remuneration, including pension contributions and Long-Term Incentive plan awards, is set out in
the Single Total Figure of Remuneration table in the Directors’ Remuneration report on pages 101 to 102.
The total amounts received or receivable by Directors under long-term incentive schemes in respect of
qualifying service in the year is £1,000 (2023: £81,000). The aggregate of gains made by the Directors in
the year on the exercise of share options equated to £nil (2023: £nil). Details with respect to share options
exercised in the year are set out on page 109.
RISK CONTINUED
31. Business combinations and disposals
Accounting policy
All business combinations are accounted for using the acquisition method. The consideration transferred
for the acquisition of a subsidiary comprises the:
• Fair values of the assets transferred
• Liabilities incurred to the former owners of the acquired business
• Equity interests issued by the Group
• Fair value of any asset or liability resulting from a contingent consideration arrangement
• Fair value of any pre-existing equity interest in the subsidiary
The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for
recognition under IFRS 3 – Business Combinations are recognised at their fair value at the acquisition
date except that:
• Deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are
recognised and measured in accordance with IAS 12 – Income Taxes and IAS 19 – Employee Benefits
respectively
• Liabilities or equity instruments related to the replacement by the Group of an acquiree’s share-based
payment awards are measured in accordance with IFRS 2 – Share-based Payments
Liabilities for contingent consideration are classified as fair value through profit and loss.
The excess of the consideration transferred, amount of any non-controlling interest in the acquired entity,
and acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of
the net identifiable assets acquired is recorded as goodwill.
The Group recognises any non-controlling interest in the acquired entity on an acquisition-by-acquisition
basis either at fair value or at the non-controlling interest’s proportionate share of the acquired entity’s
net identifiable assets. Acquisition-related costs are expensed as incurred. Where a business combination
is achieved in stages, the Group’s previously-held interest in the acquired entity is remeasured to fair
value at the acquisition date and the resulting gain or loss, if any, is recognised in the income statement.
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33. Share-based payments
Accounting policy
The Group issues equity-settled share-based payments to colleagues: long-term incentives, executive
share options and Save As You Earn (“SAYE”). These payments are measured at fair value at the date of
grant using the Black-Scholes option-pricing model taking into account the terms and conditions upon
which the options were granted. The cost of equity-settled awards is recognised on a straight-line basis
over the vesting period, based on the Group’s estimate of the number of shares that will eventually vest.
a. Fair value of options
The Black-Scholes option-pricing model is used to calculate the fair value of the options and the amount to
be expensed. The probability of the performance conditions being achieved was included in the fair-value
calculations. The inputs into the model for options granted in the year expressed as weighted averages are
as follows:
2024 2023
SAYE
Nil-price
options SAYE
Nil-price
options
Share price at grant date (pence) 729.0 729.0 828.6 828.6
Option exercise price (pence) 724.0 – 690.0 –
Volatility (%) 32.4% 37.7 % 35.6% 40.4%
Option life (years) 3.3 2.6 3.4 3.0
Risk-free interest rate (%) 4.0% 4.4% 4.4% 3.4%
Expected dividends as a dividend yield
(%) 2.1% 3.3% 4.4% 4.0%
Volatility is based on historic share prices over a period equal to the vesting period. Option life used in the
model has been based on options being exercised in accordance with historical patterns. For executive share
options the vesting period is three years.
If options remain unexercised after a period of ten years from the date of grant, these options expire. Options
are forfeited if the colleague leaves the Group before options vest. SAYE options vest after three or five years
and expire three and a half or five and a half years after the date of grant.
The risk-free interest rate of return is the yield on zero-coupon UK Government bonds on a term consistent
with the vesting period. Dividends used are based on actual dividends where data is known and future
dividends estimated using a dividend cover of three times (within the Board’s target range) .
The expected life of options used in the model has been adjusted, based upon management’s best estimate,
for the effect of non-transferability, exercise restrictions and behavioural considerations.
There are no cash-settled share schemes. All share schemes are equity-settled.
b. Income statement charge and shares granted
A description of the share schemes operated by the Group is contained in the remuneration report on page 90.
The estimated fair values of the shares under option granted under the Group’s share schemes in 2024 are
as follows:
Share scheme Grant date
Fair value for the
Group
£m
Restricted Share Plan (nil-price options) 16 April 2024 5.5
Buyout Award 25 April 2024 1.0
Restricted Share Plan (nil-price options) 16 September 2024 1.4
Save As You Earn 26 September 2024 3.6
c. Share options for the Group
The number and weighted average exercise price of share options is as follows:
In thousands of options
The Group
2024 2023
Weighted
average
exercise price
(pence)
Number of
options
Number of nil
price options
Weighted
average
exercise price
(pence)
Number of
options
Number of nil
price options
Outstanding at the
beginning of the year 527 5,132 2,229 823 5,276 2,568
Forfeited during the year 542 (1,644) (481) 652 (2,649) (279)
Exercised during the year 706 (19) (458) 747 (4) (925)
Granted during the year 724 1,040 1,066 690 2,509 865
Outstanding at the end of
the year 474 4,509 2,356 527 5,132 2,229
Exercisable at the end of
the year 547 39 75 352 201 417
The weighted-average share price on the date of exercise of options exercised in the period was 896 pence
(2023: 921 pence) .
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OTHER INFORMATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 December 2024
Travis Perkins plc Annual Report and Accounts 2024
PEOPLE continued
33. Share-based payment continued
Details of the options outstanding at 31 December are as follows:
2024 2023
Executive
options SAYE
Nil price
options
Executive
options SAYE
Nil price
options
Range of exercise
prices (pence) 898 – 1,958.0 690 – 1,411.0 – 898 – 1,958 690 – 1,411 –
Weighted average
exercise price (pence) 1,304 717 – 1,328 749 –
Number of shares
(thousands) 14 4,530 2,349 3 5,132 2,226
Weighted average
expected remaining
life (years) – 2.1 1.6 – 2.7 1.8
Weighted average
contractual remaining
life (years) – 2.6 11.6 – 3.2 8.6
d. Impact of vesting and exercise
If all SAYE shares are acquired on the first possible day, 4.5m of shares will be issued for a consideration of
£32.1m in the years below:
2025 2026 2027 2028 2029
No. m £m No. m £m No. m £m No. m £m No. m £m
Options 0.5 0.0 0.6 0.0 0.8 0.0 0.1 0.0 0.0 0.0
SAYE 1.5 10.5 1.4 9.9 1.1 8.2 0.4 2.6 0.1 0.9
The table above shows theoretical amounts. For the Group to receive the cash indicated in the periods
shown, the following must occur:
• All performance conditions on executive share options must be fully met.
• Options must be exercised on the day they vest (option holders generally have a seven year period post
vesting to exercise the option).
• The share price at the exercise date for SAYE options must exceed the exercise price and every holder must
exercise.
• All option/SAYE holders must remain with the Group, or leave on good terms.
If none of the requirements are met then the Group will receive no consideration.
34. Key management personnel
The remuneration of the key management personnel of the Group is set out below in aggregate for each of
the categories specified in IAS 24 – Related Party Disclosures.
£m 2024 2023
Short-term employee benefits 10.9 9.9
Post-employment benefits 0.5 0.5
Share-based payments 3.8 5.2
15.2 15.6
35. Related party transactions
The Group has a related party relationship with its subsidiaries, its Directors and with its pension schemes
(note 18). Transactions between Group companies, which are related parties, have been eliminated on
consolidation and are not disclosed in this note.
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Travis Perkins plc Annual Report and Accounts 2024
OTHER
36. Impact of new standards and interpretations
A number of new or amended standards became applicable for the current reporting period and as a result
the Group has applied the following standards:
• Classification of liabilities as current or non-current, and non-current Liabilities with covenants (amendments
to IAS 1 – presentation of Financial Statements).
• Lease liability in a sale-and-leaseback (amendments to IFRS 16 – Leases).
• Supplier finance arrangements (amendment to IAS 7 – Statement of Cash Flows and IFRS 7 – Financial
Instruments: Disclosures).
The above requirements did not have a material impact on the Group and have been adopted without
restating comparatives.
At the date of the approval of these financial statements, the following standards and interpretations, which
have not been applied in these financial statements, were in issue, but not yet effective:
• IFRS 18 – Presentation and disclosure in financial statements.
• IFRS 19 – Subsidiaries without Public Accountability: Disclosures.
• Amendments to IAS 21 – Lack of exchangeability.
• Annual improvements to IFRS – Volume 11
• Amendments to IFRS 9 and IFRS 7 – Classification and measurement of financial instruments and contracts
referencing nature-dependent electricity
Based on their initial assessment, the Directors anticipate that adoption of these standards and
interpretations in future periods will not have a material impact on the financial statements of the Group.
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FINANCIAL STATEMENTS
COMPANY BALANCE SHEET
As at 31 December 2024
£m Notes 2024 2023
Assets
Non-current assets
Tangible assets – 0.1
Investment in subsidiaries 2 2,416.7 1,921.9
Derivative financial instruments 9 3.8 2.9
Total non-current assets 2,420.5 1,924.9
Current assets
Debtors 4 200.5 644.0
Cash and cash equivalents, excluding bank overdrafts 201.1 108.9
Total current assets 401.6 752.9
Total assets 2,822.1 2,67 7.8
Equity and liabilities
Capital and reserves
Issued capital 23.8 23.8
Share premium account 545.6 545.6
Cash flow hedge reserve 2.5 2.9
Merger reserve 326.5 326.5
Own shares (7.2) (14.1)
Other reserves 1.4 1.4
Accumulated profits 1,269.6 1,317. 2
Total equity 5 2,162.2 2,203.3
Non-current liabilities
Interest-bearing loans and borrowings 6 421.8 420.5
Total non-current liabilities 421.8 420.5
£m Notes 2024 2023
Current liabilities
Interest-bearing loans and borrowings 6 13.2 –
Derivative financial instruments 9 – 0.4
Amounts due to subsidiaries 7 209.2 36.1
Other creditors 10 15.7 17.5
Total current liabilities 238.1 54.0
Total liabilities 659.9 474.5
Total equity and liabilities 2,822.1 2,67 7.8
The Company’s profit for the year was £28.8m (2023: £297.1m), and total comprehensive income for the
year was £28.5m (2023: £295.7m).
The accompanying notes form an integral part of these financial statements.
The financial statements of Travis Perkins plc, registered number 824821, were approved by the Board of
Directors on 31 March 2025 and signed on its behalf by:
Geoff Drabble Duncan Cooper
Chair Director
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FINANCIAL STATEMENTS
COMPANY STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2024
£m
Share
capital
Share
premium
Merger
reserve
Hedging
reserve
Own
shares Other
Retained
earnings
Total
equity
At 1 January 2023 23.8 545.6 326.5 4.3 (34.3) 1.4 1 ,107.8 1,975.1
Profit and total comprehensive income for the year – – – (1.4) – – 297.1 295.7
Dividends – – – – – – (82.1) (82.1)
Own shares movement – – – – 20.2 – (20.2) –
Equity-settled share-based payments net of tax – – – – – – 14.6 14.6
At 31 December 2023 23.8 545.6 326.5 2.9 (14.1) 1.4 1,317.2 2,203.3
Profit and total comprehensive income for the year – – – 0.3 – – (28.8) (28.5)
Dividends – – – – – – (23.2) (23.2)
Sale of own shares – – – – 0.1 – – 0.1
Own shares movement – – – – 6.8 – (6.8) –
Equity-settled share-based payments net of tax – – – – – – 11.7 11.7
Exercise of options over non-controlling interest – – – – – – (1.2) (1.2)
Reclassifications – – – (0.7) – – 0.7 –
At 31 December 2024 23.8 545.6 326.5 2.5 (7. 2) 1.4 1,269.6 2,162.2
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FINANCIAL STATEMENTS
NOTES TO THE COMPANY’S FINANCIAL STATEMENTS
For the year ended 31 December 2024
GENERAL INFORMATION
Overview
Travis Perkins plc is the ultimate parent of the Travis Perkins plc Group (“the Group”). The nature of the
Group’s operations and its principal activities are set out in the Strategic report on pages 2 to 70. The
Company is incorporated and is domiciled in the United Kingdom as a public limited company under the
Companies Act 2006. The address of the registered office is Lodge Way House, Lodge Way, Harlestone
Road, Northampton NN5 7UG.
These financial statements are presented in pounds sterling, the currency of the primary economic
environment in which the Group operates.
Basis of accounting
The Company meets the definition of a qualifying entity under Financial Reporting Standard 100 and as
such these financial statements have been prepared in accordance with Financial Reporting Standard
101 Reduced Disclosure Framework (“FRS 101”). In preparing these financial statements, the Company
applies the recognition, measurement and disclosure requirements of UK-adopted international accounting
standards, but makes amendments where necessary in order to comply with Companies Act 2006 and has
set out below where advantage of the FRS 101 disclosure exemptions has been taken.
As permitted by section 408 of the Companies Act 2006, the income statement of the Company has not
been presented.
The Company has taken advantage of the following disclosure exemptions under FRS 101:
• The requirements of IFRS 2 “Share-based Payment” in respect of Group settled share-based payments;
• The requirements of IFRS 7 “Financial Instruments: Disclosures”.
• The requirements of paragraphs 91 to 99 of IFRS 13 “Fair Value Measurement”.
• The requirement in paragraph 38 of IAS 1 “Presentation of Financial Statements” to present comparative
information in respect of paragraph 79(a)(iv) of IAS 1.
• The requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134 to
136 of IAS 1 “Presentation of Financial Statements”.
• The requirements of IAS 7 “Statement of Cash Flows”.
• The requirements of paragraphs 30 and 31 of IAS 8 “Accounting Policies, Changes in Accounting Estimates
and Error”.
• The requirements of paragraphs 17 and 18A of IAS 24 “Related Party Disclosures”.
• The requirements in IAS 24 “Related Party Disclosures” to disclose related party transactions entered into
between two or more members of a group, provided that any subsidiary which is a party to the transaction is
wholly owned by such a member.
• The requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d) to 134(f) and 135(c) to 135(e) of IAS 36 -
Impairment of Assets.
Where required, equivalent disclosures are given in the consolidated financial statements of Travis Perkins plc.
Basis of preparation
The financial statements have been prepared on the historical cost basis, except that derivative and other
financial instruments and contingent consideration arising from business combinations are stated at fair
value through profit and loss and also designated financial instruments are stated at fair value through other
comprehensive income.
Foreign currencies
Transactions denominated in foreign currencies are recorded at the rates ruling on the date of the transaction.
At the balance sheet date, monetary assets and liabilities denominated in foreign currencies are translated at
the rate of exchange ruling at that date. Foreign exchange differences arising on translation are recognised in
the income statement.
Going concern
After reviewing the Group’s forecasts and risk assessments and making other enquiries, the Board
has formed the judgement at the time of approving the financial statements that there is a reasonable
expectation that the Company has adequate resources to continue in operational existence for the 12
months from the date of signing this Annual Report and Accounts. For this reason the Board continues to
adopt the going concern basis in preparing the financial statements.
In arriving at their opinion the Directors considered:
• The Group’s cash flow forecasts and revenue projections.
• The impact on trading performance of severe but plausible downside scenarios. Key assumptions include
significant reductions in revenue, removal of property profits and limited reductions in fixed overheads, as
well as mitigating actions such as delayed capital expenditure, reduced overhead investment and dividend
suspension.
• The committed debt facilities available to the Group and the covenants thereon.
• The Group’s debt maturity profile and the successful issuance of £125m of new debt in March 2025.
• The Group’s robust policy towards liquidity and cash flow management.
• The Group’s ability to successfully manage the principal risk and uncertainties outlined on pages 59 to 69
during periods of uncertain economic outlook and challenging macroeconomic conditions.
The downside scenarios tested, outlining the impact of severe but plausible adverse scenarios based on a severe
recession and housing market weakness, show that there is sufficient headroom for liquidity and covenant
compliance purposes for at least the next 12 months from the date of approval of these financial statements.
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FINANCIAL STATEMENTS
Significant accounting policies
The principal accounting policies adopted in preparing the financial statements are provided throughout the
notes to the financial statements.
Standards issued but not yet effective
New standards, amendments and interpretations which are in issue but not yet effective are not expected to
have a material impact on the Company’s financial statements.
1. Income statements disclosures
The audit fee for the Company and the consolidated financial statements is disclosed in note 4(b) of the
Group consolidated financial statements. Fees payable to KPMG LLP for audit and non-audit services to the
Company are not required to be disclosed because the Group financial statements disclose such fees on a
consolidated basis. Details of the Company’s policy on the use of auditors for non-audit services, the reasons
why the auditor was used rather than another supplier and how the auditor’s independence and objectivity
were safeguarded are set out in the Audit Committee Report
Staff costs (including Directors):
£m 2024 2023
Wages and salaries 5.7 6.5
Social security costs 0.7 0.9
Other pension costs 0.2 0.2
Share-based payments (note 12) 4.3 5.4
10.9 13.0
The average monthly number of persons employed including Directors during the year was 50 (2023: 51).
2. Investments in subsidiaries
Accounting policy
Investments in subsidiaries are carried at cost less impairment.
£m 2024 2023
Cost
At 1 January 3,147.8 3,003.6
Additions 494.8 144.2
At 31 December 3,642.6 3,147. 8
Provision for impairment
At 1 January (1,225.9) (1,135.0)
Impairment charge – (90.9)
At 31 December (1,225.9) (1,225.9)
Net book value at 31 December 2,416.7 1,921.9
The additions to investments in 2024 represent the capitalisation of intercompany loans as part of the
Group’s ongoing project to simplify its legal structure.
The impairment charge in 2023 relates to the Company’s investment in Travis Perkins Finance Company
Limited and followed the payment of intercompany dividends in 2023 which resulted in a reduction in the
subsidiary’s net assets below the carrying amount of the investment held by the Company. Accordingly an
impairment loss was recognised.
As the carrying amount of the net assets of the Company was more than its market capitalisation as at
31 December 2024, the Directors have carried out an impairment review of the Company’s investments
and concluded that the investments are not impaired. The investment balance principally relates to the
Company’s investment in Travis Perkins Group Holdings Limited, which indirectly holds all of the Group’s
operating businesses.
A full listing of all related undertakings is provided in note 11.
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FINANCIAL STATEMENTS
NOTES TO THE COMPANY’S FINANCIAL STATEMENTS CONTINUED
For the year ended 31 December 2024
3. Deferred tax
£m
(Asset)/liability: At 1 Jan 2024
Recognised
in income
Recognised in
equity
Recognised
in other
comprehensive
income At 31 Dec 2024
Share-based payments (2.0) 0.6 (0.1) – (1.5)
Cash flow hedge 0.7 – – 0.1 0.8
Other timing differences (0.2) – – – (0.2)
(1.5) 0.6 (0.1) 0.1 (0.9)
£m
(Asset)/liability: At 1 Jan 2023
Recognised
in income
Recognised in
equity
Recognised
in other
comprehensive
income
Share-based payments (0.7) (1.3) – –
Cash flow hedge 1.1 – – (0.4)
Other timing differences (0.3) 0.1 – –
0.1 (1.2) – (0.4)
4. Debtors
Accounting policy
Debtors are originally recognised at fair value. Subsequent to the initial recognition they are measured at
amortised cost using the effective interest rate method.
£m 2024 2023
Current:
Amounts owed by subsidiaries 155.9 572.4
Other financial assets – loan notes 1.7 1.7
Other debtors 42.9 69.9
200.5 644.0
Amounts owed by subsidiaries include loans and other balances. The loans are interest-free and repayable
on demand.
5. Share capital and reserves
Accounting policy
Equity instruments represent the ordinary share capital of the Company and are recorded at the
proceeds received, net of directly attributable incremental issue costs.
a. Share capital
Ordinary shares of 11.2p (authorised, issued and fully paid) No. £m
At 1 January and December 2024 212,509,334 23.8
The Company has one class of ordinary share that carries no right to fixed income. The holders of ordinary
shares are entitled to receive dividends as declared and are entitled to one vote per share at meetings of the
Company. All shares rank equally with regard to the Company’s residual assets. See Group note 19 for the
explanation of movements in share capital and own shares.
b. Own shares
2024 2023
At 1 January 1,668,682 2,596,684
Reissued (476,499) (928,002)
At 31 December 1,192,183 1,668,682
The own shares held by the Employee Share Ownership Trust are to satisfy options under the Group’s share
option schemes. None of the own shares have been allocated to grants of executive options and all rights
attaching to the shares are suspended until the shares are reissued.
c. Reserves
A description of the nature and purpose of each reserve is given below:
• The share premium represents the amounts above the nominal value received for shares sold.
• The cash flow hedge reserve represents the cumulative gain or loss on the fair value of effective hedging
instruments used in cash flow hedges which have not yet been reclassified to profit or loss.
• The merger reserve represents the premium on equity instruments issued as consideration for the
acquisition of BSS.
• The own shares reserve represents the cost of shares purchased in the market and held by the Employee
Share Ownership Trust to satisfy options under the Group’s share option schemes.
• Retained earnings represents cumulative results for the Company.
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FINANCIAL STATEMENTS
Distributable reserves
The distributable reserves accessible to the Company broadly approximate its accumulated profits. When
required the Company can receive dividends from its subsidiaries to increase the available distributable
reserves.
6. Interest bearing loans and borrowings
Accounting policy
Interest-bearing bank loans and overdrafts, loan notes and other loans are recognised in the balance
sheet at amortised cost. Finance charges associated with arranging non-equity funding are recognised in
the income statement over the life of the facility. All other borrowing costs are recognised in the income
statement in accordance with the effective interest rate method.
£m 2024 2023
Bonds 250.0 250.0
Finance charges netted off borrowings (3.2) (4.5)
Term loan 75.0 75.0
Senior unsecured notes 100.0 100.0
Overdrafts 13.2 –
435.0 420.5
Current liabilities 13.2 –
Non-current liabilities 421.8 420.5
435.0 420.5
£m 2024 2023
Borrowings repayable:
On demand or within one year 13.2 –
More than one year, but not more than five years 325.0 325.0
More than five years 100.0 100.0
Gross borrowings 438.2 425.0
Unamortised fees (3.2) (4.5)
435.0 420.5
At 31 December 2024 all borrowings were denominated in sterling (2023: sterling).
In respect of income-earning financial assets and interest-bearing financial liabilities, the following table
indicates their effective interest rates at the balance sheet date.
2024 2023
Effective
interest rate £m
Effective
interest rate £m
Assets:
Short-term deposits 4.4% 200.0 5.2% 101.5
Liabilities:
2026 £250m bond 3.8% 250.0 3.8% 250.0
£75m term loan 4.6% 75.0 4.6% 75.0
£100m senior unsecured notes 6.2% 100.0 6.2% 100.0
425.0 425.0
Details of the bonds, term loan and senior unsecured notes are given in note 22 to the consolidated financial
statements.
7. Amounts due to subsidiary undertakings
£m 2024 2023
Amounts due to subsidiary undertakings – current 209.2 36.1
209.2 36.1
Amounts due to subsidiary undertakings relate to loans and other balances. These loans are interest-free.
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FINANCIAL STATEMENTS
NOTES TO THE COMPANY’S FINANCIAL STATEMENTS CONTINUED
For the year ended 31 December 2024
8. Financial risk management
For more details of the Group’s hedging instruments see notes 27 and 28 of the Group financial statements.
£m 2024 2023
Non-current assets
Interest rate swap – cash flow hedge 3.3 2.9
Total non-current derivative financial instrument assets 3.3 2.9
The Company’s hedging reserve relates to the following hedge instrument:
£m Interest rate swaps
At 1 January 2023 3.2
Change in fair value of hedging instrument recognised in OCI (1.4)
Deferred tax 0.4
At 1 January 2024 2.2
Change in fair value of hedging instrument recognised in OCI 0.4
Deferred tax (0.1)
At 31 December 2024 2.5
The following amounts were recognised in the Group’s profit and loss:
£m 2024 2023
Net loss on foreign currency forwards not qualifying as hedges
included in other gains 0.8 –
£m 2024 2023
Carrying amount (non-current assets) 3.3 2.9
Notional amount 75.0 75.0
Maturity date 15 August 2027 15 August 2027
Hedge ratio 1:1 1:1
Change in fair value of hedging instruments for the year 0.4 4.3
Weighted average hedged rate for the year 5.1% 4.6%
9. Financial instruments
For the full details of the cash flow hedging instrument and the resulting accounting policy, see notes 27 and
28 of the Group accounts.
a. The carrying value of categories of financial instruments
£m 2024 2023
Financial assets:
Mandatorily at FVTPL 0.5 –
Loans and receivables (including cash and cash equivalents)
at amortised cost 399.9 686.1
Designated instrument-by-instrument as either FVTPL or FVOCI 3.3 2.9
403.7 689.0
Financial liabilities:
Mandatorily at FVTPL – 0.4
Borrowings (note 6) 435.0 420.5
Trade and other payables at amortised cost 220.2 44.2
655.2 465.1
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FINANCIAL STATEMENTS
b. Liquidity analysis
The following table details the Company’s liquidity analysis for its derivative financial instruments and other
external financial liabilities. The table has been drawn up based on the undiscounted net cash flows on the
derivative instruments that settle on a net basis and the undiscounted gross cash flows on those derivatives
that require gross settlement. When the amount payable or receivable is not fixed, the amount disclosed has
been determined by reference to the projected interest and foreign currency rates as illustrated by the yield
curves existing at the reporting date.
£m
2024
0–1 year 1–2 years 2–5 years 5+ years Total
Total gross settled: Foreign
exchange forward contracts (18.7) – – – (18.7)
Total net settled: Interest rate
swap – cash flow hedge 1.1 0.9 0.7 – 2.7
Total derivative financial
instruments (17.6) 0.9 0.7 – (16.0)
Net settled:
Borrowings (30.6) (270.6) (132.7) (72.2) (506.1)
Trade and other payables at
amortised cost (220.2) – – – (220.2)
Total financial instruments (250.8) (270.6) (132.7) (72.2) (726.3)
£m
2023
0–1 year 1–2 years 2–5 years 5+ years Total
Total gross settled: Foreign
exchange forward contracts (22.9) – – – (22.9)
Total net settled: Interest rate
swap – cash flow hedge 1.9 1.9 3.1 – 6.9
Total derivative financial
instruments (21.0) 1.9 3.1 – (16.0)
Net settled:
Borrowings (20.9) (20.8) (353.5) (143.9) (539.1)
Trade and other payables at
amortised cost (47.4) – – – (47.4)
Total financial instruments (68.3) (20.8) (353.5) (143.9) (586.5)
10. Other creditors
Accounting policy
Other creditors are measured at amortised cost. The Company has financial risk management policies in
place to ensure that all payables are paid within the credit time frame.
£m 2024 2023
Other creditors 11.0 8.1
Accruals 4.7 9.4
15.7 17.5
11. Related undertakings
The registered office of all subsidiary undertakings is Lodge Way House, Lodge Way, Harlestone Road,
Northampton NN5 7UG except for companies with a superscript where the registered office is given after the
list of subsidiary companies and investments.
Active subsidiary companies (100% ownership and UK registered)
CCF Limited TP Property Company Limited
Independent Construction Technologies Limited
*3
Travis Perkins Group Holdings Limited
Keyline Civils Specialist Limited
2
Travis Perkins (Properties) Limited
Staircraft Group Limited
1
Travis Perkins Finance Company Limited
*3
The BSS Group Limited Travis Perkins Leasing Company Limited
*3
The Cobtree Scottish Limited Partnership
1
Travis Perkins P&H Group Holdings Limited
Tools & Fasteners Solutions Limited Travis Perkins Trading Company Limited
Toolstation Holdings Limited Wickes Properties Limited
*3
Toolstation Limited
1
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FINANCIAL STATEMENTS
NOTES TO THE COMPANY’S FINANCIAL STATEMENTS CONTINUED
For the year ended 31 December 2024
11. Related undertakings continued
Dormant & non-trading subsidiary companies (100% ownership and UK registered)
Benchmarx Kitchens and Joinery Limited Terant Supplies Limited
British Steam Specialties (International) Limited (The) Tile It All (UK) Limited
*3
BSS (UK) Limited The BSS EBT Company Limited
*3
BSS GPS Trustee Limited Tile Giant Holdings Limited
Builders Mate Limited TP Directors Ltd
Cobtree Nominees Limited TP General Partner (Scotland) Limited
1
E. East & Son Limited TPG Management Services Limited
JS Towell Limited
*3
Travis Group Limited
MD-DOR3 Limited
*3
Travis & Arnold Limited
MD-DOR4 Limited Travis Perkins Capital Partner Limited
Monteith Building Services Limited
*4
Travis Perkins Financing Company No.3 Limited
P. H. Properties Limited
*3
Travis Perkins Merchant Holdings Limited
P.T.S. Plumbing Trade Supplies Limited
*3
Tricom Group Limited
*3
* companies in voluntary liquidation.
Other subsidiary companies (100% ownership and non-UK registered)
Company Name Registered % Ownership Status
BSS (Ireland) Limited
5
Ireland 100 Active
Toolexpert Benelux BV
6
Netherlands 97 Active
Toolstation BV
6
Netherlands 97 Active
Toolstation NV/SA
7
Belgium 97 Active
Toolstation Europe BV
6
Netherlands 97 Active
Toolstation Europe Limited United Kingdom 97 Active
Toolstation Netherlands BV
8
Germany 97 Dormant
Toolstation SAS
9
Netherlands 97 Active
Travis Perkins Hong Kong Limited
10
France 97 Active
Travis Perkins Sourcing (Shanghai) Ltd
11
Hong Kong 100 Active
Investments
Company Name Registered % ownership Status
Hermitage Park Management Company Limited
12
United Kingdom 25 Active
Registered offices (not Lodge Way House)
1 Ryehill House, Ryehill Close, Lodge Farm Industrial Estate, Northampton, England, NN5 7UA,
United Kingdom
2 50 Mauchline Street, Glasgow, G5 8HQ, United Kingdom
3 C/O Forvis Mazars LLP, 1st Floor Two Chamberlain Square, Birmingham, B3 3AX, United Kingdom
4 C/O Forvis Mazars LLP, Restructuring Services Apex 2, 97 Haymarket Terrace, Edinburgh, EH12 5HD,
United Kingdom
5 White Heather Industrial Estate, South Circular Road, Dublin, 8, Ireland
6 Brandpuntlaan Zuid 12, 2665NZ, Bleiswijk, Netherlands
7 Boomsesteenweg 58, 2630 Aarlselaar, Belgium
8 Regus Building, Kranhaus 1, Business Centre GmbH Co KG, Im Zollhafen 18, 50678 Koln, Germany
9 61 Route de Grenoble, 69800 Saint Priest, Lyon, France
10 Suite 2401, 24/F, China Insurance Group Building, 141 Des Voeux Road, Central, Hong Kong
11 Building No.17, No. 800 Changde Road, JingAn District, Shanghai 200040, China
12 C/O Bruton Knowles LLP, 2 Paris Parklands, Railton Road, Guildford, Surrey, GU2 9JX, United Kingdom
12. Share-based payments
The Company operates a number of share incentive plans. A description of the share schemes operated by
the Group, including that of the Company, is contained in the remuneration report on pages 90 to 93 and
page 106 to 110 and in note 33 to the consolidated financial statements.
13. Related party transactions
The Company has a related party relationship with its subsidiaries, its Directors and with its pension
schemes. In addition the remuneration of the Directors, and the details of their interests in the share capital
of the Company are provided in the audited part of the remuneration report on pages 102 to 110. Other than
the payment of remuneration there have been no related party transactions with Directors.
Details of balances outstanding with subsidiary companies are shown in notes 4 and 7 and in the balance
sheet on page 172.
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FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY
CONSOLIDATED INCOME STATEMENT
2024
£m
2023
(re-presented)*
£m
2022
£m
2021
£m
2020
£m
Revenue 4,607.4 4,837.1 4,994.8 4,568.7 3 ,697. 5
Operating profit before amortisation and adjusting items 151.8 198.1 295.3 352.8 128.3
Amortisation (10.4) (10.5) (10.5) (11.1) (8.6)
Adjusting items – operating (139.1) (26.9) – 6.8 (92.7)
Operating profit 2.3 160.7 284.8 348.5 27.0
Share of associates’ results – – – – 0.1
Net finance costs (40.7) (39.3) (39.8) (42.9) (47.4)
(Loss)/profit before tax (38.4) 121.4 245.0 305.6 (20.3)
Adjusting items – deferred tax – – – (4.7) (9.0)
Income tax expense (2.2) (31.9) (52.8) (60.1) (5.8)
Net (loss)/profit from continuing operations (40.6) 89.5 192.2 240.8 (35.1)
Net (loss)/profit from discontinued operations (36.8) (51.4) – 38.1 13.2
(Loss)/profit for the period (77.4) 38.1 192.2 278.9 (21.9)
Basic (loss)/earnings per share from continuing operations (19.2)p 42.5p 90.8p 103.9p (14.3p)
Basis (loss)/earnings per share from discontinued operations (17.4)p (24.4)p – 16.4p 5.3p
Adjusted earnings per share 36.6p 54.4p 94.6p 107. 3p 21.0p
Dividend declared per ordinary share 14.5p 18.0p 39.0p 73.0p –
Number of branches at 31 December (includes branches of associates) 1,421 1,507 1,484 1,513 1,389
Average number of colleagues 17,59 4 18,831 19,956 18,833 17,512
* The comparative numbers prior to 2023 are not re-presented for discontinued operations related to Toolstation Europe France.
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FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY CONTINUED
CONSOLIDATED FREE CASH FLOW STATEMENT
£m
2024
£m
2023
(re-presented)*
£m
2022
£m
2021
£m
2020
£m
Adjusted operating profit 151.8 198.1 295.3 352.8 128.3
Less: Profit on disposal of properties (11.3) (15.1) (25.3) (48.9) (9.2)
Adjusted operating profit excluding property profit 140.5 183.0 270.0 303.9 119.1
Depreciation of property, plant and equipment 79.8 79.1 73.6 69.2 60.0
Amortisation of internally generated intangibles 3.6 4.6 6.5 9.7 11.5
Share-based payments 11.7 14.6 17.0 19.1 12.2
Movement on working capital 5.5 (22.6) (76.5) (151.8) 197.4
Other net interest paid (19.5) (25.0) (16.9) (13.6) (28.3)
Interest on lease liabilities (29.6) (25.6) (21.5) (21.2) (21.3)
Income tax paid (20.9) (40.7) (57.6) (59.9) (27.6)
Capital expenditure excluding freehold purchase (63.8) (107. 2) (110.0) (95.0) (87.1)
Disposal of plant and equipment 1.2 2.0 10.1 4.4 5.4
Free cash flow 108.5 62.2 94.7 64.8 241.3
* The comparative numbers prior to 2023 are not re-presented for discontinued operations related to Toolstation Europe France.
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FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEET
2024
£m
2023
£m
2022
£m
2021
£m
2020
£m
Assets
Non-current assets
Property, plant and equipment 771.1 848.4 847. 3 800.1 830.4
Goodwill and other intangible
assets 908.2 947. 8 974.9 978.7 1,670.5
Right-of-use assets 545.4 530.4 451.7 439.8 1,145.5
Other receivables 15.3 14.2 17. 2 0.7 –
Retirement benefit asset 116.9 100.6 135.9 275.8 178.4
Other investments – – – – 9.2
Derivative financial instruments 3.3 2.9 4.3 – –
Deferred tax asset 17. 5 18.0 15.0 13.9 –
Current assets
Inventories 648.6 727.6 727. 8 724.4 840.7
Trade and other receivables 760.5 689.6 725.9 706.7 892.7
Tax debtor – 14.5 0.7 – 6.5
Derivative financial instruments – – – 0.2 –
Cash and cash equivalents 244.4 131.5 235.7 459.8 505.6
Total assets 4,031.2 4,025.5 4,136.4 4,400.1 6,079.5
Capital and reserves
Issued capital 23.8 23.8 23.8 25.2 25.2
Share premium account 545.6 545.6 545.6 545.6 545.6
Merger reserve 326.5 326.5 326.5 326.5 326.5
Own shares (7.2) (14.1) (34.3) (61.4) (39.5)
Other reserves 19.5 23.5 27.4 14.6 15.5
Accumulated profits 1,065.9 1,135.0 1,213.2 1,387.3 1,840.5
Total equity 1,974.1 2,040.3 2,102.2 2, 237.8 2,713.8
2024
£m
2023
£m
2022
£m
2021
£m
2020
£m
Non-current liabilities
Interest-bearing loans and
borrowings 421.8 445.1 349.1 575.2 575.7
Lease liability 560.1 518.8 438.3 414.7 1,168.3
Long-term provisions and other
payables 21.6 3.8 4.9 6.8 21.9
Deferred tax liabilities 68.3 92.8 96.0 140.4 7 7. 2
Current liabilities
Interest-bearing loans and
borrowings – 192.5 – –
Lease liability 94.5 89.6 74. 3 74.5 158.8
Overdraft 13.2 – – – –
Derivative financial instruments – 0.4 0.2 – 1.6
Trade and other payables 838.2 795.4 852.4 921.1 1,304.2
Tax liabilities – – – 0.4 –
Short-term provisions 39.4 39.3 26.5 29.2 58.0
Total liabilities 2,0 57.1 1,985.2 2,034.2 2,162.3 3,365.7
Total equity and liabilities 4,031.2 4,025.5 4,136.4 4,400.1 6,079.5
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OTHER INFORMATION
OTHER INFORMATION
Contents
185 ESG data report (including SASB data)
188 Other shareholder information
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FINANCIAL STATEMENTS
OTHER INFORMATION
Travis Perkins plc Annual Report and Accounts 2024
ESG DATA REPORT (INCLUDING SASB DATA)
Unit of Measure SASB reference 2024 2023 2022 2021 2020
Energy and fuel
Total energy consumed kWh N/A (SECR
compliance)
276,611,054 311,809,636 322,116,912 364,826,976 339,716,233
Total UK energy consumed kWh 267, 508 ,323 306,260,839 313,744,004 358,494,358 334,383,277
Total Non-UK energy consumed kWh 9,102,731 5,548,797 8,372,908 6,332,618 5,332,957
Total energy consumed
Gigajoules
(GJ) CG-MR-1.30a.1 995,792 1,122,515 1,080,095 1,313,377 1,222,978
Grid energy % CG-MR-1.30a.1 35.98 34.58 34.67 28.35 33.35
Renewable energy % CG-MR-1.30a.1 23.84 21.85 23.50 5.83 0
Fuel consumption Litres N/A 17,054,583 19,600,396 20,680,219 22,650,200 21,430,651
Waste
Non-hazardous waste Tonnes N/A 26,624 28,149 27, 238 28,175 18,946
Hazardous waste Tonnes N/A 143 252 297 229.0 236
Landfilled waste Tonnes N/A 508 1,075 1,622 1,492 1,353
Recycled waste Tonnes N/A 10,290 10,837 8,656 10,084 9,614
Incinerated waste Tonnes N/A 15,969 16,237 16,960 16,829 8,216
Total waste Tonnes N/A 26,767 28,401 27,535 28,404 19,182
Data Security
Data breaches # CG-MR-230a.2 0 0 0 0 1
Involving Personally Identifiable Information (“PII”) % CG-MR-230a.2 0 0 0 0 100
Customers affected # CG-MR-230a.2 0 0 0 0 9
Description of approach to identifying and addressing data security risks Text CG-MR-230a.1
Labour practices
Average hourly wage £ CG-MR-310a.1 13.81 13.21 13.54 12.8 12.4
In-branch colleagues earning minimum wage by region % CG-MR-310a.1 0.0% 0.0% 0.0% 0.7% 7.4%
Voluntary turnover rate for in-branch colleagues Rate CG-MR-310a.2 15.60% 17.3% 20.6% 19.6% 10.7%
Involuntary turnover rate for in-branch colleagues Rate CG-MR-310a.2 6.10% 7.1% 5.7% 4.2% 9.9%
Total amount of monetary lossesas a results of legal proceedings associated with labour lawviolations £m CG-MR-310a.3 0.0 0.0 0.0 0.0 0.0
“See text on page 187”
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OTHER INFORMATION
ESG DATA REPORT (INCLUDING SASB DATA) CONTINUED
Unit of Measure SASB reference 2024 2023 2022 2021 2020
Workforce diversity and inclusion
Gender
Management
Female % CG-MR-330a.1 22.6% 21.6% 23.6% 20.6% 18.3%
Male % CG-MR-330a.1 7 7.4% 78.4% 76.4% 79.4% 81.7%
Not available or Not disclosed % CG-MR-330a.1 – 0% 0% 0% 0%
All other employees
Female % CG-MR-330a.1 25.1% 25.0% 25.6% 25.7% 20.7%
Male % CG-MR-330a.1 74.9% 75.0% 74.4% 74. 3% 79.3%
Not available or Not disclosed % CG-MR-330a.1 – 0% 0% 0% 0%
Ethnic group
Management
Asian % CG-MR-330a.1 2.3% 2.4% 2.5% 1.9% 2.0%
Black or African American % CG-MR-330a.1 0.5% 0.7% 0.7% 0.5% 0.3%
Hispanic or Latino % CG-MR-330a.1 0.9% 0.9% 0.8% 0.9% 0.7%
White % CG-MR-330a.1 76.2% 80.0% 80.1% 82.5% 85.9%
Other % CG-MR-330a.1 0.2% 0.3% 0.3% 0.4% 0.5%
Not available or Not disclosed % CG-MR-330a.1 19.9% 15.7% 15.7% 13.7% 10.7%
All other employees
Asian % CG-MR-330a.1 3.2% 2.7% 2.5% 2.6% 2.0%
Black or African American % CG-MR-330a.1 1.8% 1.3% 1.2% 1.0% 0.7%
Hispanic or Latino % CG-MR-330a.1 1.8% 1.5% 1.5% 1.6% 1.4%
White % CG-MR-330a.1 62.7% 64.0% 65.1% 64.3% 67.8%
Other % CG-MR-330a.1 5.8% 2.5% 0.5% 0.7% 0.7%
Not available or Not disclosed % CG-MR-330a.1 24.7% 28% 29.3% 29.8% 27.4%
Total amount of monetary lossesas a result of legal proceedings associated with employeediscrimination £m CG-MR-330a.2 0 0.01 0 0 –
Product sourcing, packaging and marketing
Revenue from products third-party certified to environmental and/or social sustainability standards £m CG-MR-410a.1 399 407 538 555 386
Description of processes to assess and manage risks and/or hazards associated with chemicals in product Text CG-MR-410a.2
Discussion of strategies to reducethe environmental impactofpackaging Text CG-MR-410a.3
Water consumption
Water consumption m3 N/A 270,146 277,610 258,321 316,852 281,050
See text on page 187
See text on page 187
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OTHER INFORMATION
Travis Perkins plc Annual Report and Accounts 2024
CG-MR-230a.1: Description of approach to identifying and addressing data security risks
Travis Perkins Group identifies vulnerabilities in its information systems using a combination of people,
processes and technology while following the NIST Cybersecurity Framework to measure its maturity and
alignment with ISO 27001.
The processes of building, procuring, deploying, operating, and managing IT systems some of which are
ongoing are governed by established policies and standards, which are regularly reviewed to ensure they
remain current. Any exceptions to these policies or standards undergo a rigorous risk assessment and
management process, including approval from system and data owners. The Group allocates specific
funding to undertake security-related projects aimed at enhancing security maturity and managing risks
within acceptable limits.
Every colleague’s learning plan includes regular data protection training, and cyber awareness training
throughout the Group. Additionally, colleagues are frequently targeted with phishing simulation campaigns
using a leading industry approach.
Technology is implemented across the IT infrastructure to protect against and detect cyber threats and attacks.
This includes tools such as firewalls, proxies, data loss prevention systems, extended detection and response
(XDR), as well as continuous monitoring and logging into a Security Information and Event Management
(SIEM) system. Security events were monitored 24/7/365 to ensure timely detection and response.
From a testing perspective, regular penetration tests and vulnerability scans are conducted on various
components of the IT infrastructure and systems to identify exploitable vulnerabilities. When vulnerabilities
are discovered, the Information Security Team evaluates, addresses, and tracks them.
The Group also regularly tests its incident response capabilities through tabletop exercises to assess the
effectiveness of its incident response plans and playbooks.
This comprehensive approach is part of the Group’s internal control and assurance framework and will be
reviewed as outlined in the Internal Audit Plan to ensure that risks are adequately mitigated.
CG-MR-410a.2: Description of processes to assess and manage risks and/or hazards
associated with chemicals in product
The Group requires its suppliers to adhere to its published ‘Supplier Commitments’ (https://www.
travisperkinsplc.co.uk/sustainability/social-and-governance/sourcing-responsibly/). Suppliers are required
to notify immediately where any product supplied contains substances of very high concern (SVHCs),
explosives precursors or poisons or has other restrictions on sale and to take steps to replace any products
that contain restricted substances or SVHCs with suitable alternatives. For such products, suppliers are
required to provide a Safety Data Sheet (SDS). The business undertakes supplier assessments either
via an Online Risk Assessment or via factory audits, based on risk, to assess adherence to the Supplier
Commitments. The supplier assessment programme covers both private label and branded product
suppliers. Restricted products are flagged within the business systems, triggering processes at point of sale
to ensure they’re not sold to underage customers (i.e. solvents). This includes, for example:
• corrosive products, under the Offensive Weapons Act 2019, including acids and chemicals which may burn
the skin but not normal strength household bleach and cleaners); and
• solvents, under the Psychoactive Substances Act 2016, including glues and adhesives, flammable products
such as fire lighter fluid, solvent cement, paint stripper, thinners, essentially any substances which are
capable of producing a psychoactive effect in a person who consumes it and it is not an exempted
substance; and
• spray paint and aerosols; under the Anti-Social Behaviour Act 2003.
There is a requirement in the Group Supplier Manual (https://www.travisperkinsplc.co.uk/sustainability/
social-and-governance/sourcing-responsibly/) for suppliers delivering to the Group’s sites to provide a safety
data sheet for all substances delivered which are harmful to health.
CG-MR-410a3: Description of strategies to reduce the environmental impact of packaging
The Group is committed to reducing its environmental impact relating to packaging. For more information
on objectives and progress, please refer to page 34. Throughout 2024 the Group continued to work with
the direct sourcing team to optimise the amount of material used, achieving packaging reductions and
improvements. The Group continued to work with Ecosurety its packaging compliance partner, to ensure
smooth transition to the Extend Producer Regulations, and obtain packaging data from its suppliers which
is differentiated by packaging levels; primary, secondary and tertiary, and by material type. In late 2024, the
Group began a competitive tendering process to consolidate the supply of packaging materials used across
the business. This process is due to complete in Q1 2025.
With regards to influencing others, the Group will continue its work with the Supply Chain Sustainability
School (SCSS) to raise awareness and share best practice on packaging reductions and transitioning to
more sustainable packaging solutions. Travis Perkins and BSS branches continue to backhaul cardboard,
plastic and wood packaging to their distribution centres where it is processed and sent for reprocessing.
188
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
OTHER INFORMATION
Travis Perkins plc Annual Report and Accounts 2024
OTHER SHAREHOLDER INFORMATION
Financial diary
Ex-dividend date 17 April 2025
Record date 22 April 2025
Trading statement 29 April 2025
Annual General Meeting 14 May 2025
Payment of final dividend 29 May 2025
Annual General Meeting (“AGM”)
The AGM will be held on 14 May 2025 at 9.30am.
Registrars
For information about shareholdings and dividends and to report changes to your address, bank details or
any other account information please contact the Company’s registrars (“MUFG”):
MUFG Corporate Markets
Central Square
29 Wellington Street
Leeds
LS1 4DL
Shareholder portal provided by MUFG: www.travisperkins-shares.com
Email: shareholderenquiries@cm.mpms.mufg.com
Telephone: +44 (0) 371 664 0300*
Shareholder portal
You can view and manage your shareholder account online via the shareholder portal provided by MUFG
(www.travisperkins-shares.com). You will need to register to use this service and to do so you will require
your unique investor code which can be found on your share certificate or dividend confirmation (and which
you may see abbreviated as “IVC”).
Dividends
It is more secure to have your dividends paid directly into your bank account than by cheque. If you do
not already have your dividends paid directly into your account and would like to do so, you can do this on
the MUFG shareholder portal or you can contact MUFG, who will send you the relevant form to complete.
Shareholders outside the United Kingdom may be able to make use of MUFG’s International Payment Service
facility to have dividends converted into your chosen currency. For further details please contact MUFG or
visit https://www.mpms.mufg.com/en/for-individuals/uk/shareholders/international-payment-service/.
Shareholder communications
Travis Perkins plc Annual Reports and other information pertinent to investors, including results, other reports
and presentations and regulatory news, are available on the Investors section of our Company website
(www.travisperkinsplc.co.uk).
Annual Report
The Annual Report is published on our Company website and a hard copy will be posted to shareholders
who have requested it. All other shareholders will be notified by letter or email when the Annual Report is
available on our website. A hard copy of the Annual Report can be requested by writing to:
The Company Secretary
Travis Perkins plc
Ryehill House
Rye Hill Close
Lodge Farm Industrial Estate
Northampton
NN5 7UA
or by email to: cosec@travisperkins.co.uk
Electronic shareholder communications
The Company encourages you to consider if receiving your shareholder communications by email would work
best for you. This is a faster, more environmentally friendly and more effective way to communicate with
you. If you have received a paper copy of this report or notification of its availability by post and would like to
receive fully electronic communication, please register your preference on the MUFG shareholder portal.
Other shareholder services provided by our registrars
MUFG provide a number of other services that, as a shareholder, might be useful to you:
Duplicate share register accounts
If you are receiving more than one copy of our report, or notification by post of its availability online, it may
be that your shares are registered in two or more accounts on our register of members. If that is not your
intention you may wish to consider merging the accounts into one single entry. Please contact MUFG who
will be pleased to help you.
Dividend Re-Investment Plan (“DRIP”)
This is a facility provided by MUFG which allows shareholders resident in the United Kingdom, Channel Islands
and Isle of Man to use their dividends to buy further shares in the Company. Full details are available by calling
MUFG on +44 (0) 371 664 0381, or you can sign up for this service on the MUFG shareholder portal (by
clicking on “Manage your account” followed by “Dividend payments” and following the on-screen instructions).
Share-dealing services
Share-dealing services are available to shareholders resident in the UK, Channel Islands and Isle of Man
from MUFG:
On-line dealing: https://sharedeal.cm.mpms.mufg.com/
Telephone dealing: +44 (0) 371 664 0445*
These services are only available to private shareholders resident in the UK.
* Calls will be charged at the standard geographic rate and will vary by provider. Calls from outside the United Kingdom will be charged at the applicable
international rate; lines are open 9.00am to 5.30pm, Monday to Friday with the exception of share-dealing lines which are open from 8.00am to 4.30pm.
CBP00019082504183028
Printed by a CarbonNeutral® Company certified to ISO 14001 environmental management system.
This product is made using recycled materials limiting the impact on our precious forest resources, helping reduce the need to harvest more trees.
100% of the inks used are vegetable oil based, 95% of press chemicals are recycled for further use and, on average 99% of any waste associated
with this production will be recycled and the remaining 1% used to generate energy.
The paper is Carbon Balanced with World Land Trust, an international conservation charity, who offset carbon emissions through the purchase and
preservation of high conservation value land.
Through protecting standing forests under threat of clearance, carbon is locked-in that would otherwise be released.
Travis Perkins plc
Lodge Way House, Lodge Way,
Harleston Road, Northampton, NN5 7UG
www.travisperkinsplc.co.uk