Travis Perkins group operating profits fell 15.1% to £271.5m from last year’s £319.9m despite cuts to staff numbers and reducing expansion targets.
However, when adjusted before tax, profits were actually down 22.5% to £202.5m from last year’s £261.4m.
This was worse than many had predicted and has led the firm to state it will not be paying out a final dividend to share holders.
The group’s chief executive, Geoff Cooper, said showroom business was disrupted towards the end of 2008 by ‘two significant events’.
These were the stock liquidation from the administration and closure of a major kitchen and bathroom competitor and the administration and closure of Travis Perkins’ conservatory supplier.
He said: “We took early action in 2008 to deal with the increasingly tough trading environment and have set our business ready to manage continuing difficult market conditions in 2009.
“We have already taken decisive action, and stand ready to take further steps if necessary.”
Overall, like-for-like lfl sales in the retail division were down 5.3% with 1.7% price inflation and a 7% volume decrease.
But, network expansion added 6.2% to retail sales so in total they increased by 0.9%.
Wickes’ lfl sales of core products were down by 4.8% and on the same basis showroom sales fell by 8.1%.
Trade division sales fell by 0.7% with sales from new branch openings contributing 3.5% and lfl sales falling by 4.2%.
However, Tile Giant was the star performer with lfl sales bucking the trend and up by 5.5%.