Executive directors at Travis Perkins will not receive their bonuses after the company’s profits were slashed during its latest financial year.
The Northampton-headquartered business reported pre-tax profits of £70m for 2023, down from £245m, last week.
In a statement issued to the London Stock Exchange, Travis Perkins said a “progressive downturn” in new build housing and private domestic repair, maintenance and improvement (RMI) markets contributed to its lower revenue.
It added that a combination of lower volumes, overhead cost inflation and “rapid” commodity price deflation in the second half of the year saw its profits cut.
Now, Travis Perkins’ annual report has revealed that executive directors will not receive their bonuses “in light of lower than anticipated profit delivery by the end of the year”.
The business also confirmed that the total remuneration for chief executive Nick Roberts for 2023 was 43 per cent lower than the year before.
In the annual report, remuneration committee chair Louise Hardy said: “The group has made good progress against its strategic priorities during the year, growing margin-accretive value-add services, delivering a substantial proportion of planned technology and modernisation programmes to improve operational effectiveness, as well as continuing to drive positive actions in support of the group’s longer-term sustainability plan.
“However, challenging market conditions continued for longer than expected during 2023, which significantly impacted on sales volumes
“In light of lower than anticipated profit delivery by the end of the year, the group will not pay any bonuses to executive directors or members of the group leadership team in respect of 2023 performance.”
Travis Perkins also said that a majority of its employees will receive an increase in their salary of 1.5 per cent, saying it is “very important to recognise that inflation remains high and that cost-of-living pressures continue to impact colleagues across the group.”
The committee also decided that the salaries of executive directors and members of the group leadership team should increase by the same amount.
Travis Perkins said that this “follows a similarly restrained approach to setting salaries for executives in the past”.