𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

The chief executive of Travis Perkins has issued a stark warning regarding impending price hikes for building materials, driven by escalating energy costs and rising fuel bills.

Gavin Slark, the newly appointed head of the UK’s largest building materials distributor, revealed that recent global developments have already begun to impact industry pricing.

This surge is directly attributed to the escalating conflict in the Middle East, which has disrupted vital oil and gas supplies, consequently driving wholesale prices upwards.

“In the last week or so, we’ve had communications from various manufacturing suppliers of ours saying they’re looking at energy surcharges or they’re looking at price increases to counteract energy rises,” he told the Press Association.

He explained that for energy-intensive sectors, this translates into an immediate pricing issue, with costs rapidly affecting businesses.

Slark added: “We’re very alert to it and we’re very aware of what the impact will be.”

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Mr Slark said it was a “balancing act” for the retailer to pass on price increases “fairly” to its own customers but not “disadvantage ourselves”.

“I think our customers understand that energy prices are rising significantly therefore the cost price of the materials will be rising,” he said.

“I think if we can find a resolution to the conflict as quickly as possible that’s probably the best scenario in terms of managing pricing within our industry.”

The Builders Merchants Federation (BMF) revealed that the volume of sales of building materials dropped by 7.2 per cent in January in the UK, compared with the same month last year, before the US-Israel war with Iran escalating.

The BMF said about 75 per cent of building materials are made in the UK, but many of its members require energy for materials like steel, oils, resins and glass to manufacture goods.

Mr Slark also said rising road fuel costs could have the biggest impact on Travis Perkins, with a major part of its business being the delivery of products to builders around the UK.

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He also said most of the products it sells were sourced within the UK but that there were “some small products brought in from the Far East” which could be affected by higher shipping costs.

Travis Perkins reported a pre-tax loss of £134.7 million for 2025, widening from 2024’s £38.4 million loss.

However, on an adjusted basis, which strips out the impact of one-off costs including accounting issues, it generated an operating profit of £133 million – down 12.5 per cent year on year.

The company highlighted a stronger performance for its Toolstation brand, with revenues increasing during the year.

Travis Perkins’ share price was up by more than 5% on Tuesday.