LONDON (dpa-AFX) - Travis Perkins plc (TPK.L) on Tuesday reported loss before tax of 49 million pounds for the financial year ended 31 December 2018, compared to profit before tax of 290 million pounds in the prior year. Loss per share was 34.4 pence, compared to earnings of 93.1 pence last year.
The loss for the year was primarily due to the impairment of goodwill and intangible assets in the Wickes business by 246 million pounds in 2018.
However, adjusted profit before tax increased 1.2% to 347 million pounds from 343 million pounds in the prior year. Adjusted earnings per share were 114.5 pence, compared to 110.4 pence last year.
Revenue for the year increased 4.8% to 6.74 billion pounds from 6.43 billion pounds last year, with like-for-like growth of 4.9%.
The company's board has recommended a full-year dividend of 47.0 pence, up 2.2% from 46.0 pence in 2017.
Through simplification, the Group expects to achieve cost reduction of 20 million pounds to 30 million pounds from the above-branch cost base by mid-2020. A number of actions were initiated towards this target in the fourth quarter of 2018, which will deliver about 5 million pounds of annualized benefits in 2019.
Looking ahead, the Group expects its 2019 adjusted operating profit to be similar to 2018.
Travis Perkins said that in its fiscal 2018 results announced today, a key component of simplification is the removal of the existing divisional structure across the Merchanting businesses.
Due to the changing shape of the Group, there will no longer be a Board-level Chief Operating Officer role. Accordingly, Tony Buffin will step down from the Board today and will be leaving the business.
Buffin joined Travis Perkins as Group Chief Financial Officer or CFO in April 2013, before being appointed as Group Chief Operating Officer or COO in 2017.
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