Travis Perkins has announced a decline in both profits and revenues after closing 165 stores in June, but the retailer remains adamant it is now on the path to recovery.

The building supplies retailer, which owns Wickes and Toolstation, recorded an 81% decline in profits year on year in the first half to £42m.

Revenues also dropped 20% to £2.79bn in the six months to June 30 and 19% on a like-for-like basis.

The retailer undertook a full restructuring of the business in June, including the closure of 165 of its stores, primarily in the trade merchant division reflecting a change in demand.

The closures resulted in 2,500 redundancies across the group, which makes up 9% of the total workforce.

During lockdown, Travis Perkins kept around a third of its merchant branches open, while Wickes and Toolstation became fulfilment centres for both delivery and click-and-collect orders.

Wickes and Toolstation began reopening for customers from May, and the retailer has seen particular recovery in these divisions as consumers undertake more personal DIY projects.

The retailer has noted a slower return to activity in new housebuilding and major commercial projects.

Chief executive Nick Roberts said: “Throughout the pandemic, the health and safety of our colleagues and customers has been our primary concern. Customer interactions have changed significantly resulting in changes to the way we do business, from increased activity through digital channels through to alterations to our physical store formats in order to maintain safe working practices.

“Although our financial performance in the first half of 2020 was impacted by the Covid-19 pandemic, and we have had to undertake a restructuring programme in light of the challenging outlook for the group’s end markets, we have made significant strategic and operational progress against the four strategic priorities we outlined at our full-year results in March 2020. 

“Although considerable uncertainty around the impact of the Covid-19 pandemic remains, the actions we have taken to adapt and innovate in our businesses mean that the group is well placed to continue to service our customers, support our colleagues, outperform our markets and generate value for our shareholders.”