Travis Perkins appoints former Taylor Wimpey boss Pete Redfern as next chief executive

Travis Perkins has hired former Taylor Wimpey boss Pete Redfern as its next chief executive.

Redfern replaces Nick Roberts, who is stepping down after a challenging five-year tenure at Britain’s largest building materials supplier.

Travis Perkins’ profits fell by around 80 per cent to £38m last year as rising interest rates and cost-of-living pressures led to lower demand for new-build and refurbishment homes.

Following the result, the Northampton-based company said it was reviewing some of its Toolstation business in Europe.

Travis Perkins also warned that demand will remain subdued over the next year and that the UK construction sector’s recovery is unlikely to gain momentum before the general election.

The FTSE 250 company later revealed that its revenue fell 4.9 per cent in the first three months of 2024 due to weak operations in its general merchandising division.

Jez Maiden, interim chairman of Travis Perkins, said Redfern would join “at an important time for the group as we focus on improving profitability and increasing cash generation, as well as accelerating changes to our operating model to create a simpler and more efficient business.”

During Redfern’s tenure at the helm of Taylor Wimpey, from 2008 to 2022, the company successfully recovered from the global financial crisis to become one of Britain’s largest housebuilders.

Its sales and profits received a significant boost due to the Covid-19 pandemic, thanks to an increase in people working from home and historically low interest rates.

These factors simultaneously bolstered Travis Perkins as many homeowners with excess savings completed much-needed renovations.

However, both Taylor Wimpey and Travis Perkins have seen trading slow over the past two years as rising inflation and mortgage rates have reduced housing affordability.

The former hopes to build between 9,500 and 10,000 homes in 2024, compared to 10,848 last year and 14,154 the year before.

Redfern said his “initial focus” after joining on Sept. 16 will be to “implement and add to actions already underway to improve operational execution and increase focus on efficiency and cash generation.”

Taylor Wimpey also announced that Geoff Drabble, former director of equipment hire company Ashtead Group, will become its next chairman from early October.

Drabble, 64, currently chairs plumbing supplier Ferguson and packaging company DS Smith, which recently accepted a £5.8bn takeover bid from US firm International Paper Company.

Maiden said Drabble, who succeeds Jasmine Whitbread, “brings a deep and relevant skill set to the board, particularly with respect to the distribution of building materials and equipment hire”.

Travis Perkins shares rose 3.9 percent to 832.5 pence on Wednesday morning and have more than halved in the past three years.