Travis Perkins poaches SIG boss as new chief executive

Importance Score: 25 / 100 🔵

Travis Perkins, a prominent firm in the construction materials sector, has tapped Gavin Slark, currently the head of SIG, a supplier of roofing and insulation products, to become its next chief executive. This appointment aims to bolster Travis Perkins’ strategic direction amid ongoing economic challenges in the building materials industry.

Gavin Slark Appointed as New Travis Perkins CEO

Gavin Slark will assume his new role no later than January 2026. He succeeds Pete Redfern, who stepped down in March due to health concerns after just six months in the position, marking a period of transition for the company’s leadership.

Slark’s Extensive Industry Experience

Slark, aged 60, brings a wealth of experience to Travis Perkins. His background includes:

• Joining SIG two years prior.
• A 12-year tenure leading the Dublin-based Grafton Group, parent company of Chadwicks, a major building materials distributor in Ireland.
• Prior leadership of The BSS Group, a plumbing and heating company, from 2006 to 2011, during which he oversaw its £558 million acquisition by Travis Perkins.

Challenges in the Construction Materials Industry

The appointment of Slark occurs during a period of considerable challenges for the construction materials industry, which faces headwinds from elevated interest rates and persistent cost-of-living pressures.

Recent Financial Performance of Travis Perkins

Last week, Travis Perkins reported a 2.1% drop in like-for-like revenues for the quarter ending in March. This decline was attributed to reduced volumes within its merchanting division. This followed an earlier announcement that operating profits had been significantly impacted by subdued activity in the private domestic repair, maintenance, and improvement (RMI) market.

The Northampton-based company also cited lower commodity prices and uncertainties linked to the UK general election and the previous autumn’s budget as contributing factors.

Executive Commentary on the Appointment

Geoff Drabble, Chairman of Travis Perkins, expressed confidence in Slark’s appointment, stating, “Gavin brings with him unrivalled experience of the sector in addition to a long pedigree as a CEO of significant public companies. Gavin is well placed to continue the work we have started to refocus and change the way we operate in order to better serve our customers and work effectively with our suppliers, as well as engage and motivate our teams.”

Market Reaction to the Announcement

Following the announcement of Slark’s appointment, SIG shares experienced a significant decline, plummeting by 14.7% to 15.4p in late Friday afternoon trading, making them the biggest faller on the FTSE All-Share Index.

Conversely, Travis Perkins shares saw a positive reaction, emerging as the FTSE 250’s top performer with a 5.8% increase to 617p. However, the company’s shares remain substantially lower, having fallen by approximately two-thirds since the summer of 2021.

Pete Redfern’s short tenure as CEO of Travis Perkins, which began after Nick Roberts’ resignation, was marked by the company revising its profit forecast downward for the second time in three months.

Andrew Allner, Chairman of SIG, commented on Slark’s departure, saying, “The board looks forward to continuing working with Gavin until his departure. He has steered the group well through a difficult period in the European construction industry. He will leave in place strong and experienced leaders in each of our businesses, all operating under SIG’s well-established devolved structure.”

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