In a significant leadership change, building materials supplier Travis Perkins has announced the appointment of Gavin Slark as its new Chief Executive Officer, effective no later than January 1, 2026. Slark, who currently serves as the CEO of SIG, will step down from his position at SIG by December 31, 2025, paving the way for a transition period as he prepares to take the helm at Travis Perkins.
Travis Perkins, which has faced a tumultuous leadership landscape recently, cycling through three CEOs in less than a year, is looking to stabilize its operations with Slark's extensive industry experience. The company has been under pressure since the abrupt departure of Pete Redfern earlier this year due to ill health, after just a few months in the role. Redfern had taken over from Nick Roberts in September 2024.
Gavin Slark, 60, is no stranger to the building materials sector. He previously led The BSS Group, which was acquired by Travis Perkins in 2010, and spent over a decade as the CEO of Grafton Group before taking the reins at SIG in February 2023. Under his leadership, SIG has undergone a strategic turnaround, navigating a challenging period in the European construction industry.
Andrew Allner, Chairman of SIG, expressed confidence in Slark's leadership, stating, "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." Allner emphasized that the executive team remains focused on executing initiatives to improve business performance.
Geoff Drabble, Chair of the Travis Perkins Board, echoed these sentiments, highlighting Slark's extensive experience. "Gavin brings with him unrivalled experience of the sector in addition to a long pedigree as a CEO of significant public companies. He 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," Drabble stated.
Market analysts have reacted positively to Slark's appointment. Peel Hunt, a brokerage firm, noted that given Slark's experience and track record, the news is expected to be well-received by the market. The firm rates Travis Perkins shares a 'buy' with a target price of 750p. The company's stock has seen a 15% increase over the past month, currently trading at 583p. Analysts have assessed the shares to be valued at around 11 times forecast 2026 earnings, offering a 13% free cash flow yield.
Travis Perkins, a leading player in the building materials and merchanting industry, aims to enhance customer service and operational efficiency under Slark's leadership. His extensive background in the sector is anticipated to strengthen the company’s market position and stakeholder engagement.
As Travis Perkins prepares for this transition, the focus remains on ensuring a smooth handover and sustaining the momentum gained during Slark's tenure at SIG. While the long lead time before Slark officially takes over may introduce a period of uncertainty, his familiarity with the industry and the company’s operations is expected to provide a level of credibility that could help stabilize the organization.
In summary, Gavin Slark's appointment as the new CEO of Travis Perkins marks a critical moment for the company as it seeks to navigate the complexities of the current market landscape. With a history of successful leadership and a strategic vision for the future, Slark is poised to guide Travis Perkins through its next chapter, aiming for improved performance and stronger relationships with customers and suppliers alike.
