Travis Perkins jumps 15% as brokers point to early signs of turnaround

What Brokers Say Retail & Consumer Written by: Ian Lyall 08:50 Tue 04 Aug 2026 --> Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business output at the Daily... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Travis Perkins ( LSE:TPK ) View Price & Profile Travis Perkins jumps 15% as brokers point to early signs of turnaround Published: 08:50 04 Aug 2026 BST Shares in Travis Perkins (LSE:TPK) surged 15%, or 88p, to 661p after interim results prompted Peel Hunt and Panmure Liberum to point to evidence that the builders' merchant is turning itself around. Panmure reiterated a 'buy' rating and 740p price target, arguing the numbers showed the benefits of self-help and disciplined management. Group revenue fell 1.8%, and 0.7% on a like-for-like basis, with a 3.2% volume decline offset by the return of price inflation at 2.5%. Adjusted operating profit rose 6.3%, though it was flat once property profits were stripped out. Panmure put that underlying figure at £62 million, unchanged year on year, and left its 2026 forecasts untouched. Peel said underlying earnings per share grew 13% to 15.1p, with net cash of £55 million before leases as the business continued to release working capital. Merchanting like-for-like sales fell 1.2%, with a 2.3% drop in the first quarter offset by a flat second quarter. Operating profit in the division dropped 5% to £60 million as a stronger gross margin failed to cover higher operating costs. Panmure noted general merchanting volumes were down 3.9%, underlining how much of the profit performance is coming from margin expansion and cost control rather than demand. Toolstation grew like-for-like sales 1.4%, with volumes up 0.6%. UK profitability at the trade counter chain rose around 5% to £22 million, while European losses held at roughly £7 million. The company has begun multiple discussions with interested parties over a disposal of the European business. Management expects second half trading to resemble the first. Peel said that implied limited changes to consensus-adjusted operating profit of £124 million, against its own forecast of £115 million, and that it did not expect material changes to the numbers. The broker described the UK backdrop as extremely challenging, with depressed volumes and continued cost pressure, and flagged price inflation in oil derivatives as a key variable for the second half. Even so, it said the group was showing encouraging signs on the turnaround. Peel remains optimistic the business can deliver a successful operational recovery in a weaker market, building on a rebuilt share position and a strong balance sheet. Its valuation work was published with the shares at 573p, at which level they traded on 16 times 2027 earnings and six times enterprise value to earnings before interest, tax, depreciation and amortisation, with a 2.5% dividend yield. Continue reading