Annual Report 2023

1. Significant value opportunity

Increasing the focus on trade customers is a key driver for future growth. Currently 60% of sales are derived from our trade customers who spend on average 5x more than DIY customers. Toolstation’s goal is to increase the participation of trade customers through the following initiatives:

• Dedicated Business Development Managers
• Utilising the breadth of the Travis Perkins Group
• Holding stock depth of key trade lines
• Loyalty benefits
• 10-minute click-and-collect offer
• Targeted digital experience

2. Digital is at the heart

Digital capability is core to the success of Toolstation: 80% of journeys start online and almost 50% of sales are transacted digitally. The app represents over 25% of ecommerce spend and the website has nine million hits each month. The aim is for the customer to have an enhanced digital experience and, through the use of data and digital profiles for each customer, an enhanced experience is ensured.

3. A core investment focus

Toolstation UK represents a significant source of growth for the Group as careful investments continue to be made in the business. The network plan is to add a further 80 branches by 2027, ensuring that Toolstation provides an excellent service to trade customers with 91% of customers being in less than 20 minutes from a branch. The recent investment in Pineham, the new distribution facility for Toolstation, will future-proof the growth of the business beyond the current target of ￡1bn of sales. The investment in the automation of the facility enables a 33% reduction in labour requirements, providing a market-leading, innovative and cost-effective facility for the Group.

TF Solutions is a distributor of refrigeration, air conditioning and heat pumps. The business was acquired by Travis Perkins in 2017 and has grown from three branches to a 15 branch network covering the UK. The business works closely with BSS and both businesses have benefited from the acquisition. This is a great example of the Group acquiring an adjacent business to expand existing product ranges and provide additional solutions to existing and new customers, especially in retrofit.

Optimal estate plan

With the investment and backing of the Group, the business has accelerated from three to 15 branches, from Glasgow to Exeter, attracting the best people and continuing to develop its technical know-how. The Group’s support has enabled the expansion of TF Solutions’ range into new air heating and cooling sectors like refrigeration, commercial and applied heat pumps, providing further growth opportunities.

Synergies within the Group

Collaborating with their strategic partners in BSS, TF Solutions brings the technical expertise needed to solve
large-scale and complex heat pump projects for customers, delivering against Travis Perkins’ sustainable
ambitions. One-third of the projects that BSS supports could benefit from TF Solutions’ products and expertise, giving significant opportunity for cross-selling and further profitable growth.

Retrofit

TF Solutions has invested in its technical capability in heat pumps to enable it to address the challenge of retrofit, positioning the business as a value-added partner to the Group’s industrial and commercial customer base. The heat pump market in the UK is expected to be in excess of £3bn by 2027, with TF Solutions well-positioned to benefit from this growth and establish itself as a market-leader.

Travis Perkins Managed Services is a leading supply chain and service solutions provider, supporting customers to build and maintain safe, healthy, and sustainable homes. Established in 2004 to support the renewal and retrofit of social housing, it has grown to be the UK’s largest specialist team dedicated to the repairs and maintenance industry. With the right resources and experience, the business has developed to meet the needs of landlords across the UK and has built partnerships in social housing, facilities management and defence.

Strength of the Group

Being part of the Travis Perkins Group gives TP Managed Services a unique position in the UK market. With over 1,250 branches, access to more than 40,000 products and specialist advice from other Group businesses, Managed Services is able to provide unparalleled supply chain solutions. Curating service, product and knowledge elements from across the Group, Managed Services shares expertise with customers as part of its value proposition.

Growth from the core

Growth within Managed Services has been driven by engaging with customers to tackle critical problems like damp and mould, fire safety, and decarbonisation. Understanding customers and sharing new and innovative technologies for updating properties has been integral to delivering on responsible retrofit improvement. Understanding customers’ experiences, empathising with their challenges, and leveraging the collective strength of the Group to provide assistance and enhance value, as housebuilders work towards the Future Homes Standard and social housing landlords tackle the goal of reaching EPC C by 2030.

Decarbonisation

Analysing customers’ purchasing data and fostering strong collaborations with suppliers has enabled the business to champion innovative products that significantly enhance the energy efficiency of homes. Providing digital ordering solutions and optimising the product mix on customers vans, supports a reduction in journeys needed to restock on materials and contributes to a reduction in emissions.