Travis Perkins To Cut 600 Jobs Due To A Drop A Demand
Travis Perkins is UK’s biggest builder’s merchant and home improvement supplier. The company has recently announced its plans to cut 600 jobs after a drop in demand in the plumbing supplies and materials over the summer. According to John Carter the chief executive of Travis Perkins, market conditions have turned for the worse in its plumbing and heating divisions. These divisions are the source of nearly a quarter of the company sales.
John Carter started in the company as a trainee in 1978 before he succeeded Geoff Copper as boss two years ago. Mr. Carter plans to close 30 trade branches because of the loss of 600 jobs. Writing off the old IT systems in restructuring will cost between forty and fifty million pounds. Travis Perkins has faced a lot of challenges in supplying plumbing and heating products amidst the falling prices of materials like copper and plastic and the intense price competition in the wholesale market. Like-for-like sales fell by about 4.1pc.
Travis Perkins is also blaming the government for removing the boiler replacement incentive scheme last 2014. After John Carter announced to the investors that market conditions have definitely worsened in the plumbing and heating divisions, shares plunged by nearly 6pc in the morning trading. The company is not satisfied with its performance in the heating and plumbing divisions that is why it will undertake a review of the operations. John Carter also said that their previous forecast of annual ebita or the measure of earnings before interest, taxes and amortization will come below the market consensus of £415 million.
The review will be completed next year; however, Mr. Carter has also warned that demand could fall in other areas of the business if the DIY market fails. The firm has so far posted a solid result overall between July and September, an important trading point in the industry.
If you have a plumbing or drainage emergency, plumbers Sheffield are prepared to respond at any time of the day. The quicker you call for a plumber, the faster they will be able to control the amount of damages as result of the plumbing or drainage dilemma.