The update, for the three months to September 30, describes significant commodity product deflation impacting on margins. Its full year adjusted operating profit is now expected to be in the range of £175m to £195m.
The Group referenced the “pronounced slowdown” in new build housing and domestic RMI activity persisting into the third quarter. As a result, Group like-for-like sales were down by 1.8%.
Q3 started as expected in the merchanting division, but September saw a notable deterioration in market activity and sentiment. Q3 revenue was 3.4% lower year-on-year, with pricing declining by 3.1%.
TP described the impact of selling through existing stocks at lower market prices.
The Group’s Toolstation business saw good growth, with Q3 UK revenue growth of 7% and 9% in Europe.
The Group predicted commodity deflation to continue and the exit rate from Q3 indicated further challenging conditions for the balance of the year.
