Travis Perkins manager works on home improvement

One pair doing their bit for the sector are Robin and Sarah Miller. Robin is general counsel and company secretary of Travis Perkins (TPK) and Sarah a person closely associated with him. She sold just over £240,000-worth of shares on 8 June “to fund building works at their home”, a company disclosure said.

The softer outlook for the market has hit Travis Perkins’ shares – they have fallen by 32 per cent so far this year. It’s not alone – roofing and insulation distributor SIG (SHI) and paving merchant Marshalls (MSLH) have experienced similar declines.

Travis Perkins has continued to trade well – revenue for last year increased by 24 per cent and its adjusted operating profit more than doubled to £353mn. Sales for the first quarter of this year were up 14 per cent year on year, partly driven by higher materials prices. 

Analysts are split about its prospects, though. The share price fall has pushed its valuation below five-year averages on several metrics. Peel Hunt says they are now “inexpensive” at 10 times forecast earnings and that its strong cash generation gives it options around shareholder returns. However, the company’s high exposure to the RMI market – from which it derives 70 per cent of its sales – means it faces a “negative earnings risk”, according to Shore Capital.