Travis Perkins, Lodge Way House, Harlestone Road, Northampton, NN5 7UG
TRA VIS PERKINS PLC
ANNUAL REPOR T & ACCOUNTS
2002
TRAVIS PERKINS PLC ANNUAL REPORT AND ACCOUNTS 2002
Financial highlights 1
Chairman’s statement 3
Chief executive’s review 6
Finance director’s report 11
Corporate social responsibility statement 16
Environmental report 18
Health & safety report 22
Directors and professional advisers 24
Corporate governance 28
Remuneration report 31
Directors’ report 38
Statement of directors’ responsibilities 40
Auditors’ report 40
Consolidated profit and loss account 42
Balance sheets 43
Statement of total 
recognised gains and losses 44
Analysis of actuarial gains and losses 44
Reconciliation of movements 
in equity shareholders’ funds 44
Consolidated cash flow statement 45
Accounting policies 46
Notes to the accounts 49
Five year record of group results 66
Notice of Annual General Meeting 68
Notes to notice of Annual General Meeting 70
Other shareholder information 71
Contents
Registered office: Lodge Way House, Harlestone Road, Northampton, NN5 7UG
TRA VIS PERKINS PLC Travis Perkins, Lodge Way House, Harlestone Road, Northampton, NN5 7UG
TRA VIS PERKINS PLC
ANNUAL REPOR T & ACCOUNTS
2002
TRAVIS PERKINS PLC ANNUAL REPORT AND ACCOUNTS 2002
Financial highlights 1
Chairman’s statement 3
Chief executive’s review 6
Finance director’s report 11
Corporate social responsibility statement 16
Environmental report 18
Health & safety report 22
Directors and professional advisers 24
Corporate governance 28
Remuneration report 31
Directors’ report 38
Statement of directors’ responsibilities 40
Auditors’ report 40
Consolidated profit and loss account 42
Balance sheets 43
Statement of total 
recognised gains and losses 44
Analysis of actuarial gains and losses 44
Reconciliation of movements 
in equity shareholders’ funds 44
Consolidated cash flow statement 45
Accounting policies 46
Notes to the accounts 49
Five year record of group results 66
Notice of Annual General Meeting 68
Notes to notice of Annual General Meeting 70
Other shareholder information 71
Contents
Registered office: Lodge Way House, Harlestone Road, Northampton, NN5 7UG
TRA VIS PERKINS PLC Financial highlights 1
Chairman’s statement 3
Chief executive’s review 6
Finance director’s report 11
Corporate social responsibility statement 16
Environmental report 18
Health & safety report 22
Directors and professional advisers 24
Corporate governance 28
Remuneration report 31
Directors’ report 38
Statement of directors’ responsibilities 40
Auditors’ report 40
Consolidated profit and loss account 42
Balance sheets 43
Statement of total 
recognised gains and losses 44
Analysis of actuarial gains and losses 44
Reconciliation of movements 
in equity shareholders’ funds 44
Consolidated cash flow statement 45
Accounting policies 46
Notes to the accounts 49
Five year record of group results 66
Notice of Annual General Meeting 68
Notes to notice of Annual General Meeting 70
Other shareholder information 71
Contents
Registered office: Lodge Way House, Harlestone Road, Northampton, NN5 7UG
TRA V IS PERKINS PLC
Travis Perkins'
group branches
at 31 December
2002
TRAVIS PERKINS  TP PLUMBING & HEATING  CITY PLUMBING  KEYLINE  CCF  DESIGN · RWH DESIGN CONSULTANTS   PHOTOGRAPHY · CALVIN HEWITT   PRINT · FOLIUM TRA V IS PERKINS PLC
1
Financial highlights 
For the year ended 31 December 2002
£m 2002 2001
Restated
Turnover 1,417.5 1,279.3
Operating profit before 
amortisation of goodwill 158.2 129.1
Profit on ordinary activities before taxation 137.6 110.5
Profit on ordinary activities after taxation 91.8 75.0
Total equity shareholders’ funds 395.4 386.8
Earnings per ordinary share
Basic 81.9p 67.3p
Adjusted (before amortisation 
of goodwill and profit
on sale of properties) 91.6p 75.5p
Dividend per ordinary share 19.5p 17.2p
Turnover up 10.8%
Profit before taxation up 24.5%
Adjusted earnings per share up 21.3%
Dividend per share up 13.4%
ADJUSTED
EARNINGS 
PER SHARE  
Pence
100
80
60
40
20
0
98 99 00 01 02
PROFIT BEFORE
TAXATION  
£m
140
120
100
80
60
40
20
0
98 99 00 01 02
TURNOVER
£m
98 99 00 01 02
TRA V IS PERKINS PLC
1600
1400
1200
1000
800
600
400
200
0 TP TIMBER lorry from nearby branch
passes Caernarfon Castle. TRA V IS PERKINS PLC
3
Results
I am pleased to report pre-tax profits for the year ended 31 December 2002 of
£137.6 million, an increase of 24.5 per cent over the £110.5 million earned in
2001.  Turnover at £1,417.5 million was 10.8 per cent ahead of the previous year.
Operating profit before goodwill amortisation of £12.1 million (2001: £10.5
million) was £158.2 million, compared with £129.1 million in 2001, an increase of 22.5 per cent.
Basic earnings per share were up 21.7 per cent at 81.9 pence, compared with 67.3 pence in 2001. Adjusted
earnings per share (prior to amortisation of goodwill and excluding profit from the sale of surplus properties)
rose 21.3 per cent to 91.6 pence from 75.5 pence.
Dividend
The board is recommending a final dividend of 13.4 pence per share, an
increase of 13.6 per cent on the final dividend of 11.8 pence for 2001.
Together with the interim dividend of 6.1 pence, this would give a total
annual dividend of 19.5 pence per share, up 13.4 per cent on the 
previous year.
Board of directors
Neil Clarke our senior non-executive director, retired on 31 December 2002,
having served on the board for 12 years. For most of that time he was
Chairman of the Audit Committee and of the Remuneration and Nominations Committee.  
On behalf of shareholders, I thank Neil for his significant contribution and wish him well in the future.
Chairman’s statement
For the year ended 31 December 2002
One of City Plumbing’s many bathroom showrooms. Corporate governance
The group board has maintained its active review of all the major areas of risk to the company.
Reports on these risks to the group board include recommendations where necessary for any improvements in
the controls or the management of the risks. A more comprehensive explanation of these controls can be found
under the corporate governance section of the annual report and accounts.
Outlook
After what has been another very successful year for the company, customer
confidence in 2003 is so far holding up against the current background of
global uncertainty. We continue to make progress with the main drivers of
growth remaining positive. The full year benefits of our aggressive acquisition
programme in 2002 will provide a significant part of our earnings growth in
2003 as like for like volumes are likely to continue the flatter trend evident in the second half of the year.
Against this background the priority this year will be to complement our many initiatives which stimulate
organic growth by building further on our acquisition and greenfield site programmes.
TRA V IS PERKINS PLC
4
T. E. P . Stevenson  CHAIRMAN
The City Plumbing branch at Witney. KEYLINE open lorry
from Broxburn branch heads
north across the Forth Bridge. TRA V IS PERKINS PLC
6
Results
The company experienced a further year of strong growth in 2002. Operating profit before
amortisation of goodwill rose 22.5 per cent to £158.2 million from £129.1 million in 2001.
Turnover increased by 10.8 per cent to £1,417.5 million from £1,279.3 million. Sales growth was
driven by the acquisition of City Plumbing Supplies (“CPS”) and of Commercial Ceiling Factors
(“CCF”) and by continued investment in the acquisition of independent merchants, new greenfield sites and
the existing branch network.
A significant improvement in the overall operating margin (before goodwill amortisation) for the year to 11.2
per cent from 10.1 per cent in 2001, reflected continuing progress on a variety of ongoing improvement
projects throughout the group. Excluding the newly acquired CPS and CCF, (whose contributions were for only
part of the year), operating margins moved further ahead. 
The 101 branches acquired in June 1999 with the acquisition of Keyline continued to perform well. Higher
returns were obtained from both those re-branded Travis Perkins and those retaining the Keyline brand,
resulting in the 8 per cent operating margin target for the Keyline business being achieved within the time set.
The 38 original Sharpe & Fisher branches and the 9 Broombys branches in Cumbria have continued to improve
and are performing ahead of the financial targets established when the businesses were first acquired.
Gross profit including rebates improved further on a like-for-like basis as a percentage of sales. Pressure on
overheads continued, particularly in relation to employment costs.
Developments
The major developments of the year were on the acquisition front. CPS, acquired on 1 July for £39.0 million
enterprise value, brought a further 48 branches into the group and strengthened significantly our presence in
the plumbing and heating sector. CPS is performing in line with expectations. It has added four more branches
since being acquired and now operates from 52 outlets.
CCF, acquired in October for £45.9 million, enhances further our ability to service customers in the growing
Chief executive’s review
For the year ended 31 December 2002 TRA V IS PERKINS PLC
7
drylining and insulation sector. Added to the five Atkins’ distribution centres already owned and the new Atkins’
West London greenfield site opened during the year, CCF increases Travis Perkins' total number of specialist
centres to 26. In addition, it enables us to supply ceilings and partitions, a move consistent with our strategy of
investing in complementary distribution areas within carefully chosen markets. Integration is proceeding well
with management responsibility for the Atkins’ branches now transferred to CCF in order to maximise
opportunities for improved sales logistics and customer service. CCF is also trading in line with expectations.
The acquisition of mixed merchant branches continued alongside the larger acquisitions and as a consequence
a further 29 branches were added to the network of which 2 were branded Keyline. The total amount spent
on acquisitions during the year was £113.5 million.
In addition, four full-product greenfield branches were opened, at Thornbury, Dover, Canvey, and Hungerford,
and two TP Plumbing and Heating branches, at Epsom and Waltham Cross. A net three tool hire outlets were
opened within our existing branches, bringing the total number of branches offering this facility to 148.
At the end of 2002 we were trading from a total of 610 branches, an increase of 108 on the number at the
end of the previous year.
Branch improvements
A programme of continuous investment in our branches is adding to the
quality and level of facilities offered to our customers. Major redevelopments
were carried out during the year at Mitcham, Crowthorne, Malton, East
Kilbride, Maidenhead, Bromsgrove and Preston.
Refurbishment of Keyline branches continued, with the introduction of
broader lightside, timber and forest product ranges.
The decision was taken to integrate the DW Archer branches into the Travis Perkins’ network and re-brand them
Travis Perkins. These branches, which are now managed by the Travis Perkins’ regional management team, will
enable us to offer an extended product range in advantageous geographic locations.
Landscaping centres have continued to perform well as have sales of own brand products, which have also
The recently redeveloped site at Mitcham. benefited from further additions to the range.
Investment in our timber milling operations, including most recently in the South East, has improved efficiency,
product availability and quality of supply to our branches.
Information technology 
Improvements to our information systems have produced particular benefits in the areas of improved stock turn,
sales and purchase invoice processing. At the same time our strong first half performance on bad debt ratios
was maintained throughout the second half of the year.
By the end of 2002 over 80 per cent of all purchase invoices and almost 40 per cent of purchase orders were
handled electronically.
Internal intranet systems were upgraded significantly during the year with interactive management information
increasingly replacing paper-based systems.
The central systems hardware was replaced creating valuable extra capacity enabling us to manage future
growth. Additional benefits of this investment have been the speeding up of processing time and serving
customers more quickly.
Customer service
A major new initiative in the area of continuous improvement in customer service will be introduced to all
branches during the first half of 2003. The programme includes regular monitoring of a series of seven key
performance indicators derived from data captured by our information systems. The data is analysed and
presented monthly, ranking branches according to their overall performance. There is also a regular and rigorous
customer feedback forum for each branch. Adherence to the programme will ensure that we maintain the
highest standards of customer service across our branch network.
Health and safety
Our continued focus on health and safety improvements demonstrated encouraging progress in both frequency
and severity rates during 2002. All incidents are investigated, corrective action taken and lessons learned are
shared throughout the company.
TRA V IS PERKINS PLC
8 F. J. McKay  CHIEF EXECUTIVE
Improvements in risk assessment processes, health and safety training and data analysis have also 
been introduced.
Environment
Our Environmental Management System accreditation to ISO 14001 was maintained during the year. The
impact of our business on the environment has been further reduced, in particular in the areas of vehicle
emissions, volatile organic compound emissions and carbon dioxide emissions. Improvements in the latter have
been achieved by moving a substantial proportion of our total electricity supply to carbon neutral sources –
effective from October 2002. Further progress has also been made in reducing waste. Concurrently we are
demanding improved performance from suppliers, particularly in timber and forest products, where we
recognise the importance of increasing the percentage of our products supplied from certified sources.
future expansion
The acquisitions during the last year of CPS and CCF provide us with excellent platforms for future growth in
plumbing and heating, dry lining and insulation and ceilings and partitions. Growth in these targeted product
lines is consistent with our strategic objectives of growing the business of Travis Perkins in areas complementary
to our traditional strengths as a leading builders merchant offering a full range of products.
We will continue to focus on our strategy of expanding in the UK, not only through the acquisition of
independent merchants, but also through the opening of additional greenfield sites and 2002 has been a year
of further progress in this respect. We remain confident that the strategy we have adopted will continue to
provide solid growth opportunities for the company.
Staff
Once again, on behalf of the board, I would like to take this opportunity of thanking all employees for helping
to make the past year one of further success and growth for the company.
TRA V IS PERKINS PLC
9 CITY 
PLUMBING
vehicle heading out 
of Salisbury. TRA V IS PERKINS PLC
11
Results
Pre-tax profits were £137.6 million (2001: £110.5 million) after charging goodwill
amortisation of £12.1 million (2001: £10.5 million).
Pre-tax profits before goodwill amortisation of £12.1 million and property profits
of £1.2 million were £148.5 million (2001: £119.6 million), an increase of 24.2 per
cent. Earnings before interest, tax, depreciation and amortisation (EBITDA) and before property profits and other
finance costs for 2002 were £180.1 million (2001: £148.1 million), an increase of 21.6 per cent.
Net interest payable for the year was £8.9 million compared with £10.7 million in 2001.
For 2002 the group has adopted Financial Reporting Standard 19 – Deferred Tax. This has resulted in a
restatement of prior year figures to include deferred tax on a full provision basis.
The tax charge was £45.8 million (33.3 per cent) compared with £35.5 million (32.1 per cent) in 2001. The rate
is higher than the UK corporation tax rate of 30 per cent because goodwill amortisation and certain expenditure
do not qualify for tax relief and taxation on profits on sale of properties is deferred. The effective tax rate, after
adjusting for property profits and goodwill amortisation, was 30.8 per cent (2001: 29.7 per cent).
Pension fund
During the year the Accounting Standards Board (“ASB”) deferred full implementation of FRS 17 - Retirement
Benefits. The company fully adopted FRS 17 in its 2001 financial statements and despite the ASB’ s decision continues
to do so in its 2002 accounts.
A full actuarial valuation of the group pension scheme was conducted as at 30 November 2002, the first full
valuation since merging the Keyline, Sharpe & Fisher and Broomby pension schemes into the Travis Perkins’ scheme.
As with many other pension schemes the sustained falls in stock markets over the past year, combined with
falling bond rates and greater longevity of pension scheme members, have contributed to a further
deterioration in the overall funding position of the Travis Perkins’ pension scheme. At 31 December the net
deficit, after allowing for deferred taxation, was £85.8 million (31 December 2001: £22.7 million). The scheme
Finance director’s report
For the year ended 31 December 2002 TRA V IS PERKINS PLC
12
Actuary has estimated that the total pension charge to the profit and loss account for 2003 will increase to
approximately £14.5 million (2002: £7.9 million) an increase of £6.6 million. Cash contributions to the scheme
will be increased by approximately £10 million.
With effect from 1 February 2003, the group established a defined contribution pension plan in which all future
new employees below management grade will be invited to participate. It is anticipated that ongoing company
contributions will be at a similar proportion of pensionable salaries to the defined benefit scheme.
Cash flow 
Like-for-like free cash flow, as shown in note 31, for the year was £128.1 million (2001: £105.6 million). The
free cash generated by the group was used substantially to fund capital expenditure on the existing business
and new acquisitions, which in total cost £143.1 million (2001: £40.3 million). 
As a result of continuing improvements in working capital management during 2002, operating cash flow was
£12.9 million, 7.7 per cent higher than for 2001, at £179.8 million.
Net debt and borrowing facilities 
During the year the group repaid a further £25 million of facilities used to
purchase Keyline in 1999 and rolled over a loan of £25 million used to
purchase Sharpe & Fisher. New bank borrowings totalling £50 million were
advanced to the group during 2002 partly to fund the acquisitions of City
Plumbing Supplies and Commercial Ceiling Factors. Net debt at the year-end
was £159.7 million (2001: £126.1 million), which represents a gearing level
of 40.4 per cent (2001: 32.6 per cent). Borrowings include £14.1 million of
unsecured loan notes issued to the shareholders of businesses acquired over the last four years. These
borrowings are redeemable at six monthly intervals ending in June 2015.
CCF Canning Town branch. TRA V IS PERKINS PLC
13
The group has £225.0 million of committed facilities, comprising a £100 million term loan repayable over the
period ending May 2004, a £50.0 million loan due for repayment in November 2005, a £25 million loan
repayable by instalments between 2004 and 2007 and a £50.0 million revolving syndicated credit facility
available until May 2004. It has overdraft facilities of £25.0 million. At the year end the group had unutilised
committed facilities of £50 million and unused overdraft facilities of £24.7 million.
Interest cover, as shown in note 5, is approximately 18 times (2001: 12 times), well within our 
borrowing covenants.
At 31 December 2002, £110 million of the group’s borrowings were covered by an interest rate swap expiring
in November 2003 with a fixed interest rate of 5.7 per cent. The negative market value of the swap at 31
December 2002 was (£1.8) million. All other borrowings are at floating rates linked to market rates.
Shareholders’ funds
Total equity shareholders’ funds before deducting the pension scheme deficit at 31 December 2002 were £481.2
million, an increase of £71.7 million on 31 December 2001. After deducting the £63.1 million increase in the
pension scheme deficit during 2002, total equity shareholders’ funds increased by £8.6 million to £395.4 million.
The return on equity shareholders’ funds before taxation, as shown in note 32, increased to 29.0 per cent in
2002 from 27.3 per cent in 2001. This level of return, after tax, was substantially higher than the group’s
weighted average cost of capital. 
At the year-end the share price was 1,005 pence (2001: 849 pence) and the market capitalisation £1,132 million
(2001: £952 million), representing 2.9 times (2001: 2.4 times) shareholders’ funds.
Goodwill
The net book value of goodwill in the balance sheet is £249.9 million, which is being amortised over 20 years.
Additions to goodwill in the year totalled £74.7 million. TRA V IS PERKINS PLC
14
Treasury risk management
Treasury activities are managed centrally under a framework of policies and procedures approved and monitored
by the board. The objectives are to protect the assets of the group and to identify and then manage financial risk.
In applying its policies, the group will utilise derivative instruments, but only for risk management purposes.
The principal risk facing the group is an exposure to interest rate fluctuations. The group is not exposed to
significant foreign exchange risk as most purchases are invoiced in sterling. These risks are described further below: 
Interest rate risk
The group finances its operations through a mixture of retained profits, bank borrowings and loan notes. The
group borrows at floating rates and uses interest rate swaps into fixed rates (see note 20) to generate the
preferred interest rate profile and to manage its exposure to interest rate fluctuations.
Currency risk
The group usually buys currency at spot rates. While this was the situation during 2002, forward contracts may
be purchased where appropriate.
Liquidity risk
he group’s policy has been to ensure that it has committed borrowing facilities in place in excess of its peak
forecast gross borrowings for at least the next twelve months.
P. N. Hampden Smith FINANCE DIRECTOR CCF vehicle leaving
Canning Town branch
which is situated in the
shadow of Canary Wharf. TRA V IS PERKINS PLC
16
We recognise the relevance of the growing interest in how companies manage social, ethical and environmental
issues and are pleased to make this first corporate social responsibility statement. The board takes account of
the significance of social, environmental and ethical matters in its conduct of the company’s business. We have
reported for some years on environmental and health and safety matters, and separate detailed reports in these
areas can be found at pages 18 to 21 and page 22 respectively. The board has considered the Guidelines on
Social Responsibility published by the Association of British Insurers in October 2002 and intends to work
towards full compliance with these guidelines. The group already has in place a comprehensive system of
internal control as described more fully on pages 29 and 30. This results in the submission to the board of
regular detailed reports on specific areas of risk. The risk control procedures underlying this process have been
reviewed to ensure that they take account of social, environmental and ethical issues.
Employees
Our employment policies have been designed to meet the needs of our business, whilst complying with both
current and anticipated legislation and following best practice. Applied consistently throughout the group they
provide a fair framework within which our employees work:
• The group is firmly committed to ensuring that the manner in which it employs staff is fair and equitable.
Our equal opportunities policy is designed to ensure that no person or groups of individuals will be treated
less favourably because of their race, colour, ethnic origin, gender or sexual orientation, age or disability;
• We are establishing a system in which every employee takes part in an annual performance review process
which enables :
• A better understanding of what is expected of them;
• Recognition of achievement;
• The opportunity to discuss problems and seek improvement;
• The opportunity for development and career progression;
• Effective succession planning.
• We regularly consult with our workforce. Throughout our branch network staff meet with management on
a formal basis to consult over matters such as health and safety and customer service. We also distribute a
number of company newsletters and encourage wide use of our intranet, both providing valuable
information and inviting feedback. Employees are regularly informed of the group’s financial results and the
market conditions in which it operates and are consulted regarding any changes in employment conditions.
To encourage the involvement of employees in the company’s performance, the company operates a Save
As You Earn option scheme. In addition, the directors, managers, and many other employees are members
of discretionary bonus schemes;
Corporate social responsibility statement TRA V IS PERKINS PLC
17
• Our commitment to training and development at all levels in the organisation gives our employees the
opportunity to realise their full potential;
• We also monitor the employment practices of our UK and overseas suppliers through both sight of their
employment policies and visits to their manufacturing premises.
Disabled persons
The group recognises its obligations towards disabled persons and endeavours to deal fairly with such persons
in matters relating to their employment. Disabled applicants for employment are given full and fair
consideration alongside all other applicants and due regard is given to their particular aptitudes and abilities.
Where a person becomes disabled during the course of employment, the company endeavours to supply
suitable training for that person’s continued employment. Disabled persons have equal opportunity with other
employees to undergo training appropriate to the development of their careers. Additionally, every effort is
made to assist disabled employees to undergo training aimed specifically at mitigating the effect of disability on
their employment.
Community involvement
With over 600 branches in a wide variety of locations throughout Great Britain, we recognise our role in and
responsibilities towards those local communities. Our branches are encouraged to support those communities
through involvement in local affairs, such as by sponsoring organisations or donating materials to projects.
At national level, we support two particular charities, the NSPCC and MacMillan Cancer Relief. At least once a
year we hold a charity fund raising day in which all staff, together with customers and suppliers, take part in a
variety of activities to support our chosen charities. In 2002 this raised a total of £98,829. The company also
made direct donations to these and other charities, which, in the year amounted to £95,932 (2001: £89,811).
In addition, we operate a payroll giving scheme through which staff donated £31,923 to charity during the year.
Product quality
We recognise our responsibilities for the quality of those building materials which we distribute. Suppliers are
required to provide products of a specified standard, by reference, where applicable, to nationally or
internationally recognised criteria, and accompanied, where appropriate, by guidance for their use.
Business conduct
We require our staff, customers and suppliers to abide by high ethical standards. Procedures are in place
designed to ensure the security of our premises and to prevent theft and fraud, and these are regularly
monitored as part of the internal control process described on pages 29 and 30. We also have strict rules
governing the receipt of gifts by employees from suppliers or customers. The contracts of employment of all
employees contain obligations of confidentiality in relation to the company’s commercially sensitive information. TRA V IS PERKINS PLC
18
The group recognises its corporate responsibility to carry out its operations whilst minimising environmental
impacts. We have maintained accreditation of our Environmental Management System to the ISO 14001
standard during 2002. A revised environmental policy was published in June 2002 and the full version is
available on the corporate website at www.travisperkins.co.uk.  
We intend to meet the above policy’s objectives by implementing nine key commitments - we report below
progress against each of these:
1. TO IMPLEMENT AND OPERATE A FORMAL ENVIRONMENTAL MANAGEMENT SYSTEM
The system has been in operation since August 2001 and has been certified to ISO 14001 since 
November 2001.
2. TO ASSIGN ENVIRONMENTAL RESPONSIBILITY THROUGHOUT THE GROUP
The detailed policy statement describes the structure of environmental responsibility, which mirrors our
operational structure.
3. TO SET AND MONITOR ENVIRONMENTAL OBJECTIVES AND TARGETS IN ORDER TO REDUCE
ENVIRONMENTAL IMPACTS
We are now monitoring and have set improvement targets to be achieved principally by 2004 relating to the
issues identified as being significant aspects by the ISO 14001 system, details of which are given below. 
4. TO INTEGRATE ENVIRONMENTAL CONSIDERATIONS INTO BUSINESS DECISION MAKING AT ALL LEVELS
We have maintained our internal audit programme, risk management audits and our focus on
environmental issues at all formal review meetings.
5. TO CONSULT WITH STAKEHOLDERS ON ENVIRONMENTAL ISSUES
We have engaged in dialogue through specific tailored meetings with several key shareholders, seeking their
guidance on the issues we should be addressing. We continue to engage in open communication with
neighbours, regulatory authorities and non-governmental organisations as particular issues arise.
6. TO DEVELOP PROCUREMENT POLICIES CONSISTENT WITH ISO 14001
We have continued to challenge our suppliers to improve their performance on environmental issues, in
particular by asking them to complete the management engagement section of the Business in the
Environment questionnaire.
Environmental report
For the year ended 31 December 2002 TRA V IS PERKINS PLC
19
7. TO ADDRESS ENVIRONMENTAL ISSUES RELATING TO PRODUCTS THAT WE DISTRIBUTE
We have set an internal target to increase the proportion of timber and forest products that are certified
and have challenged suppliers to improve their performance in this area. A number of suppliers have now
committed to improving the percentage of their supplies to us that are from certified sources.
We have commenced a project to achieve chain of custody relating to FSC (Forest Stewardship Council) and
PEFC (Pan European Forest Certification) certified products.
8. TO PROVIDE TRAINING
A general environmental awareness video continues to be provided to all new employees.
Updated guidance material has been prepared and provided to all branch managers during the year, and a
presentation on best practice is now available on the corporate intranet.
9. TO FORMALLY REVIEW THE ENVIRONMENTAL POLICY AT REGULAR INTERVALS
The Policy continues to be reviewed annually as part of the corporate governance report on environmental
issues provided to the PLC Board.
Environmental improvement plan
We have continued with the implementation of our Environmental Improvement Plan during 2002 and report
below our progress to date. The data covers all operations except for City Plumbing Supplies and Commercial
Ceiling Factors – these will be included from the beginning of 2003. Whilst the data is prepared from a
combination of specific measurements and some estimates – we are continually refining the accuracy of the
data - we believe that the information presents a fair representation of our environmental performance
improvement.
Carbon dioxide (“co 2”) emissions
Our CO 2 emission data includes that arising from fuel use in commercial
vehicles and forklift trucks, consumption of fuel oil for heating, and gas and
electricity consumption. The figures currently exclude CO
2 generated from
car drivers’ business miles, though we will have systems to aggregate this
data by the end of 2003. We estimate our total CO
2 emissions on this basis
to have been approximately 62,500 tonnes (equivalent to 49 tonnes per £1
million of sales) in 2001. In October 2002 we transferred the electricity
supply for our largest 17 consumption sites (including our head office
buildings) and over 200 further branches to carbon neutral sources. On this
basis we estimate that just over 50 per cent of our total electricity demand
is satisfied from these carbon free sources - this has been the main reason for the reduction in CO
2 emissions
shown in the adjacent chart. In 2002 we estimate that our total CO
2 emissions also fell in absolute terms to
approximately 59,300 tonnes. With a full year of use of these sources we are confident that we will see a further
significant fall in CO
2 emissions during 2003.
60
50
40
30
20
10
0
2001 2002 2004 Target
49 T/£m
CO2 emissions
(Tonnes per million £ of sales - inflation adjusted)
(8)%
(10)%
T/£m Volatile organic compound (“voc”) emissions
We have achieved a major reduction in emissions of volatile organic compounds through a programme of
replacing organic solvent-based treatment fluids with aqueous based solutions. From a base of an estimated
234 tonnes of emissions in 2001, we have reduced this in absolute terms to
approximately 120 tonnes in 2002. Six of nineteen plants remain with
organic solvent-based treatment and several plants will be converted to
aqueous during 2003. In addition we have converted all six of the copper
chromated arsenate based treatment plants to solutions that avoid the use
of chromium and arsenic based compounds. We have already met our 25
per cent reduction target set at the beginning of 2001, but will continue to
convert as many additional plants as possible – however, there are some
applications for which aqueous treatment may not be suitable. Our revised
target for 2004 has been set at a reduction of 67 per cent.
Timber certification
As shown in the chart, approximately 41 per cent of the raw material
content of our purchases of timber and timber based products were from
certified sources at the end of 2001. We made good progress in 2002 and
this figure has moved up to 45 per cent at the end the year. We have
completed a review programme with all major suppliers and have a wide
range of commitments from them to improve the percentage of timber
supplied to us that is from certified sources. We continue to challenge all
suppliers who are not currently providing certified material to work towards
certification and as a minimum we ask all suppliers to certify that timber
supplied has been handled in accordance with all relevant legislation.
Waste sent to landfill
We have placed our main emphasis on the avoidance of waste, as well as
the segregation of waste streams to reduce the cost of waste and enhance
recycling opportunities. We now sell damaged blocks, bricks and pavers as
hardcore from many branches rather than disposing of them as waste.
Cardboard segregation is improving at our branches, though in some areas
of the country recycling opportunities are limited and the waste cardboard
still goes to landfill. Major timber machining centres continue to seek
recycling opportunities, and large volumes of chippings and sawdust are
collected and recycled. During the year we have set up a number of pallet
TRA V IS PERKINS PLC
20
300
250
200
150
100
50
0
2001 2002 2004 Target
234 T
VOC emissions
(Tonnes)
(49)%
(67)%
80%
60%
40%
20%
0%
2001 2002 2006 Target
41%
Timber and timber product certification
(Content of certified material as a % of total purchases)
45%
66%
40
30
20
10
0
2001 2002 2004 Target
33T/£m
Waste sent to landfill
(Tonnes per million £ of yard sales - inflation adjusted)
(9)%
(15)%
T
T/£m TRA V IS PERKINS PLC
21
collection arrangements with pallet recyclers across the country. In total we estimate our waste sent to landfill
in 2001 at 33,400 tonnes. We have reduced this in absolute terms to approximately 31,000 tonnes in 2002.
Fuel consumption and vehicle emissions
More than 250 commercial vehicles amongst our fleet of over 1,600 are now
fitted with particulate emissions filters, with a further tranche planned to be
fitted during 2003. These filters reduce particulate emissions by more than
98 per cent and hence we estimate that our particulate emissions arising
from the vehicle fleet have been reduced by over 15 per cent since the
programme commenced. Our efforts to reduce overall fuel consumption
continue and we have to this end recently upgraded our fuel consumption
monitoring systems. In addition we are encouraging enhanced efficiency
through a system of allowing orders to be delivered from the branch closest
to the delivery address. Our fuel consumption during 2001 for commercial
vehicles was 13.3 million litres. We have set a reduction target of 10 per cent in litres per pound of inflation
adjusted delivered sales by the end of 2004. Consumption on this measure in 2002 was at the same level as
2001, but we are confident that enhanced efficiency monitoring will lead to savings in future.
Other
Further data covering packaging, water, electricity and gas is available on our website at
www.travisperkins.co.uk.
Complaints and notifiable events
The total number of complaints received in respect of environmental matters is fairly limited with sixteen
instances recorded during 2002; most related to local noise issues. This is a slightly lower figure than that for
2001. We  investigate each complaint and endeavour to rectify these situations promptly. Our target is to have
no complaints.
Our emergency procedures are written to ensure that even relatively minor events are reported to the
Environment Agency and as a result we contacted them on seven occasions during 2002 (the same level as in
2001) all relating to minor events. Our target is to have zero notifiable events.
Prosecutions
We are pleased to report that we had no prosecutions for environmental matters during 2002.
Further information
We welcome comments on this report and our policy statement. Please contact our group planning director on
environment@travisperkins.co.uk.
40%
30%
20%
10%
0%
2001 2002 2004 Target
8%
Particulate emissions filters
(Percentage of commercial fleet fitted)
16%
25% TRA V IS PERKINS PLC
22
Policy
The group continues to demonstrate its commitment to the achievement and maintenance of high standards
in health and safety throughout our branch network and offices. Health and safety is an agenda item at board
and executive meetings where key performance indicators (“KPIs”) and lost time accidents (“LTAs”) are
reviewed with action taken to minimise health and safety risks. Health and safety reporting, monitoring,
controlling and improvement continues to be ‘front of mind’ for all of our managers and staff as we strive to
make our place of work and systems of work safe for employees, customers, suppliers and sub-contractors.
Our fundamental goals in health and safety are embodied in the group policy, which has been reviewed during
2002 and re-issued to all operating premises across the group.
Measurement and reporting
In 2002 we continued to measure our health and safety performance with a focus on accident frequency rates
and severity rates. Frequency rates are improving and severity rates have reduced by 50 per cent on the previous
year. There were no fatalities during the year.
Our new computer based health and safety audit, was successfully launched during 2002 enabling the business
to capture data which not only helps our managers establish health and safety action plans but also provides
the opportunity to review year on year improvement and common health and safety challenges. Each audit was
formally reviewed in September 2002 by operational management to ensure all proposed action was on target.
Continuous improvement
The need to ensure that health and safety is a constant priority for our workforce is fully recognised and the following
initiatives not only support the achievement of this, but also have contributed to our improving safety record:
• Health and safety induction and manual handling training continues to be carried out for all new employees;
• A new risk assessment and planning process will be launched in early 2003 containing assessment
procedures designed to involve managers and employees at all levels in implementing the most effective
control measures;
• Standards for health and safety have been widely communicated throughout our company magazines and
notice boards;
• Our health and safety and risk assessment seminars for managers were updated in 2002 and continue to
be delivered to all new managers;
• Action plans following our audits have resulted in significant investment in our branch network and plant
to minimise health and safety risk. For example, by the end of 2003 over 50 per cent of our forklift trucks
will be fitted with speed restrictors;
• Traffic management systems continue to be introduced in our larger branches to reduce the risk of injury by
customer vehicles and moving plant.
Our team of health and safety specialists continues to support management and the regulatory authorities in
striving for ever-improving health and safety standards in our operating premises.
Health and safety report
For the year ended 31 December 2002 TRA V IS PERKINS PLC
TP PLUMBING
& HEATING
articulated lorry passing
Blackpool Tower. TRA V IS PERKINS PLC
24
Directors and professional advisers
As at 31 December 2002
Chairman
Tim Stevenson (aged 54)
joined the board in
September 2001 and
became chairman on 
1 November 2001. He is
a barrister and held a
number of senior
positions in Burmah
Castrol plc between
1975 and 2000,
including chief executive
from 1998. He is also a
non-executive director of
National Express plc. He
is a member of the
Remuneration and
Nominations Committee.
Chief executive
Frank McKay (aged 57)
joined the board in
November 1999 and was
appointed chief executive
on 1 January 2000. He
was previously chief
executive of the heating
division of Blue Circle
Industries plc and has
held appointments with
Siebe plc and Rockwell
Inc. He is a non-executive
director of Luxfer
Holdings plc.
Finance
director
Paul Hampden Smith
(aged 42) qualified as a
chartered accountant in
1985 and joined Sandell
Perkins in 1988.
Following the merger
with Travis & Arnold, he
was appointed regional
finance director. In 1992,
he became finance
director of Travis Perkins
Trading Company Limited
and was appointed
finance director of Travis
Perkins plc in 1996.
Managing
director,
operations
John Carter (aged 41)
joined Sandell Perkins as
a management trainee in
1978. Having held posts
as regional sales director
and regional managing
director for London, he
was appointed as
managing director,
operations in 1996. He
joined the group board in
July 2001.
SECRETARY  A. S. Pike
AUDIT COMMITTEE  M. B. Dearden (member and chairman from 1 January 2003), E. C. Adams, 
P. J. Maydon
REMUNERATION AND NOMINATIONS COMMITTEE  P . J. Maydon (chairman from 1 January 2003), 
M. B. Dearden, T. E. P. Stevenson (from 1 January 2003) TRA V IS PERKINS PLC
25
Non-executive
director
Ted Adams (aged 62)
retired as managing
director of Travis Perkins
on 31 December 1999.
He became a non-
executive director in July
2000 and is a member of
the Audit Committee. He
is a non–executive
director of Peterhouse
Group plc.
Non-executive
director
Michael Dearden (aged
60) was appointed to the
board as a non-executive
director in November
2000. He held a number
of senior posts with
Burmah Castrol plc from
1980 until his retirement
at the end of 2000. He
was a member of the
group board from 1995
most recently as chief
executive of Castrol
International. He is a
non-executive director of
Johnson Matthey plc. He
is Chairman of the Audit
Committee and is a
member of the
Remuneration and
Nominations Committee.
Non-executive
director
Charles Fisher (aged 53)
joined the board in
January 2000 as a non-
executive director. He is
chairman of John
Mowlem and Company
plc and of Country
Homes and Gardens plc
and a non-executive
director of Delta plc and
of Baggeridge Brick plc.
Non-executive
director
Peter Maydon (aged 61)
was appointed to the
board as a non-executive
director in 1998. He
joined Reckitt & Colman
in 1963 where he was
appointed an executive
director in 1980. On his
retirement from that
company in 1997, he
was group director
responsible for global
supply. He is a non-
executive director of
MGM Assurance. He is
Chairman of the
Remuneration and
Nominations Committee,
a member of the Audit
Committee and the
senior non-executive
director.
REGISTRARS  Capita Registrars, The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU
MERCHANT BANKERS  Dresdner Kleinwort Wasserstein
BANKERS  The Royal Bank of Scotland plc;  Barclays Bank plc; HSBC plc
SOLICITORS  Clifford Chance, London; Hewitson Becke & Shaw, Northampton
AUDITORS  Deloitte & Touche, Nottingham TP HIRE vehicle and
trailer from the Portslade branch
passing Henry Holland’s
Brighton Pavilion. 27
TRA VIS PERKINS PLC
2002 TRA V IS PERKINS PLC
28
Combined code
In June 1998, the Combined Code on Corporate Governance (”the Code”) was issued by the London Stock Exchange. The Code is based
on the report of the Hampel Committee and sets out principles of good corporate governance together with specific provisions. Section 1
of the Code is applicable to companies. A statement on how the company has applied the principles and a statement explaining the extent
to which it has complied with the provisions in the Code appear below. The Code established fourteen principles of governance, which are
divided into the following four areas.
1. Directors
The company is controlled through a board of directors, which presently comprises three executive and five non-executive directors. 
Mr. E. C. Adams and Mr. C. M. Fisher are not considered to be independent non-executive directors in view of their previous executive
positions.  Other non-executive directors, Mr. M. B. Dearden, Mr. P. J. Maydon and Mr. T. E. P. Stevenson are independent. Mr. T. E. P.
Stevenson is chairman and Mr. F . J. McKay is chief executive. Appointments of new directors are made by the board on the recommendation
of the Remuneration and Nominations Committee. As chairman, Mr. Stevenson ensures that all directors receive sufficient relevant
information on financial, business and corporate issues prior to meetings. All directors are able to take independent professional advice in
the furtherance of their duties if necessary.
The board has a formal schedule of matters reserved to it and meets at least ten times a year. It is responsible for overall group strategy,
acquisition policy, approval of major capital expenditure and consideration of significant financial and operational matters. It monitors the
exposure to key business risks and reviews the strategic direction of the trading subsidiaries, their annual budgets and progress towards the
achievement of those budgets and their capital expenditure programmes. It also considers legislative, environmental, health and safety and
employment issues.
The board ensures that all directors receive appropriate training on appointment and then subsequently as needed. All directors will submit
themselves for re-election at least every three years in accordance with the Code.
The board has established two standing committees, the Audit Committee and the Remuneration and Nominations Committee, which
operate within defined terms of reference. The trading subsidiary companies are managed by separate boards of directors, of which the
group executive directors are generally members. The minutes of their meetings and of the standing committees are available to the group
board of directors.
2. Directors’ remuneration
The Remuneration and Nominations Committee consists exclusively of the independent non-executive directors, and meets at least twice a
year. Its responsibilities include the review of performance of executive directors and key members of senior management prior to
determining their remuneration. The remuneration of the non-executive directors is recommended by the chairman and is then determined
by the board of directors as a whole.
The Committee has access to professional advice from inside and outside the company. No director plays a part in the discussion about his
own remuneration.
The relevant information on directors’ remuneration for the year ended 31 December 2002 is included within the Remuneration Report,
which is set out on pages 31 to 37.
3. Relations with shareholders
The company encourages two-way communication with both its institutional and private investors and responds promptly to all enquiries
received orally or in writing. The chairman, chief executive and the finance director, either separately or together, attended a number of
Corporate governance
For the year ended 31 December 2002 TRA V IS PERKINS PLC
29
meetings with analysts and institutional shareholders in the year ended 31 December 2002.
As well as sending annual and interim reports to shareholders, the company issues an annual trading statement in early January.
All shareholders receive at least twenty working days notice of the Annual General Meeting at which all directors are available for questions
and a short business presentation takes place. The numbers of proxy votes for and against each agenda item are available at the Meeting.
4. Accountability and audit 
A review of the performance of the group’s trading subsidiaries and the financial position of the group is included in the chief executive’s
review and in the finance director’s report set out on pages 6 to 14. The board uses this, together with the chairman’s statement on pages
3 and 4, to present a full assessment of the company’s position and prospects. The directors’ responsibilities for the financial statements are
described on page 40.
Internal control
The board of directors is responsible for the group’s system of internal control and for reviewing its effectiveness. In designing the system
of internal control, consideration is given to the significant risks to the business, the probability of these risks manifesting themselves and
the overall cost of controlling them. The system is designed to manage rather than eliminate the risk of failing to achieve business objectives
and therefore can only provide reasonable, and not absolute, assurance against material misstatement or loss.
The implementation and day-to-day operation of the system of internal controls has been delegated to executive directors and senior
management, but the effectiveness of the system is regularly reviewed by the board in a process that accords with the Turnbull Report. As
part of its corporate governance procedures the board has received regular reports on specific areas of risk. If appropriate, these reports
include recommendations for improvement in controls or for the management of those risks.
Furthermore, steps continue to be taken to integrate risk management procedures into the group’s operations, to extend awareness of the
importance of the management of risk and to ensure that recommended improvements brought to the attention of the board 
are implemented.
During 2002, the board reviewed its ongoing processes for identifying, evaluating and managing significant risks faced by the group, and
for improving the system of internal control. The board has carried out an annual review of the overall effectiveness of the system of internal
control and risk management procedures, during the year and up until the date of approval of the annual report. This comprised receiving
a report from the chairman of the Audit Committee and an update on the monthly reports it had previously received. The following
particular measures should be noted:
• The internal control procedures operate within a clearly defined organisational structure, with assigned responsibilities and authorities.
Control procedures are regularly reviewed and are formally documented in group reference manuals;
• The group recognises the importance of the quality and integrity of its personnel; attention is paid to the experience and capabilities of
staff and their training needs; a formal system of succession planning is in place;
• There are clear policies on health and safety, environmental compliance, security, fraud and other irregularities;
• Business processes at the group’s branches and at its head office are monitored through regular visits by the internal audit department
to ensure compliance with the policies and practices laid down by executive management. The frequency and detail of these visits is
determined by the priorities assessed as part of the annual audit plan approved by the Audit Committee. The department also has
responsibility for monitoring and maintaining the group business continuity plan. The head of the internal audit department reports to
the Audit Committee twice a year; TRA V IS PERKINS PLC
30
• The group operates a comprehensive budgetary system with annual budgets being prepared within a three year plan. Both the three
year plan and annual budgets are reviewed and approved by the board. The preparation of these plans and budgets incorporates a
review of the commercial and other risks facing the group and results in financial targets being established for individual operating units
and for the group as a whole. Actual performance against budget is monitored monthly at regional, subsidiary and group board
meetings, using performance indicators and other exception reporting. Relevant financial and non-financial information is generated by
the group’s reporting systems and communicated to management to enable actual performance to be monitored on a daily, weekly or
monthly basis, as appropriate;
• Bank facilities and other treasury functions are monitored by the finance director with any policy changes being reviewed and approved
by the board;
• The development of the group’s IT systems is monitored by a separate information technology committee, which reviews the group’s IT
continuity and disaster recovery plans, as well as the planning and implementation of any new systems;
• The group has a comprehensive system for controlling capital expenditure and assessing investment opportunities. Post investment
appraisals are undertaken on all major projects after a suitable period of time has elapsed.
Audit committee and auditors 
The Audit Committee meets at least twice a year, with both the external and internal auditors and the finance director in attendance. The
Audit Committee is responsible for agreeing external and internal audit plans and for reviewing and reporting to the board on accounting
policy and financial control and reporting matters.
The company places great importance on the independence of its auditors and together with them is careful to ensure their objectivity is
not compromised. Audit fees are negotiated by the finance director and approved by the Audit Committee. For other services that may be
provided by the auditors, the company’s policy is:
Audit related services - The auditors are invited by the company to undertake those services that they are required to and are most suited
to perform. Such work would include certification in respect of borrowings, stock exchange related reporting and
where appropriate, assistance with acquisitions.
Taxation services - The external auditors assist the group to meet general tax compliance requirements as well as providing advice on
acquisitions and tax planning. Should opportunities arise for them to advise on special projects, their suitability is
assessed at the time, with the work being tendered where appropriate.
Consulting services - The group’s policy is not to employ its auditors for general consulting work.
Future developments
The board has commenced a process to consider and take account of the recommendations and guidance contained in the Higgs review
of non-executive directors and in the Smith report on audit committees, both published in January 2003.
Going concern
After making enquiries, the directors have formed a judgement at the time of approving the financial statements that there is a reasonable
expectation that the company and the group have adequate resources to continue in operational existence for the foreseeable future. For
this reason, they continue to adopt the going concern basis in preparing the financial statements.
Corporate governance compliance statement
The company is pleased to report that it has complied throughout the year ended 31 December 2002 with the provisions set out in Section
1 of the Code. TRA V IS PERKINS PLC
31
Remuneration report
For the year ended 31 December 2002
Introduction
This report has been prepared in accordance with the Directors’ Remuneration Report Regulations 2002 (“the Regulations”), which
introduced new statutory requirements for the disclosures of directors’ remuneration in respect of periods ended on or after 31 December
2002. The report also meets the relevant requirements of the Listing Rules of the Financial Services Authority and describes how the board
has applied the principles of good governance relating to directors’ remuneration. As required by the Regulations, a resolution to approve
the report will be proposed at the Annual General Meeting of the company at which the financial statements are presented for approval.
The Regulations require the auditors to report to the company’s members on the “auditable part” of the Remuneration report and to state
whether in their opinion that part of the report has been properly prepared in accordance with the Companies Act 1985 (as amended by
the Regulations). The report has therefore been divided into separate sections for audited and unaudited information.
Unaudited information
Remuneration and nominations committee
The Committee consists of Mr. P . J. Maydon as chairman (from 1 January 2003), together with Messrs. M. B. Dearden and T. E. P . Stevenson
(from 1 January 2003). These directors are non-executive and have no day to day involvement in the running of the business, no financial
interest in the business (except as shareholders) and no conflicts of interest arising from other directorships. Written terms of reference for
the Committee have been approved by the board of directors. The Committee has been advised on directors’ remuneration packages by
three external consultants, namely, Mercer Human Resources Consulting, Hay Group and New Bridge Street Consultants. In addition, Mr.
A. S. Pike, (the company secretary) and Mr. R. Tansey, (the group HR director) have advised the Committee from time to time as requested.
Policy on executive directors’ remuneration
The company’s policy on executive remuneration is to ensure that it has an appropriate mix of fixed and variable pay over the short and
long term, to attract and retain high quality executives with an appropriate blend of skills and experience. It aims to reward executives in
line with the median of the FTSE 250 companies and of a selected comparator group. The Committee believe this will enable the company
to recruit and retain staff of high quality, contributing to the delivery of long-term shareholder value. As a consequence the company’s focus
is on the following elements of the remuneration package:
• Basic pay: to remain competitive in the labour market;
• Annual bonus payment: to provide additional ‘short term’ remuneration which directly reflects company and individual performance;
• Share options: through the regular grant of options to reward outstanding business performance over the longer term;
• Pension arrangements: to enable directors to make appropriate provision for retirement.  
A significant proportion of a director’s total remuneration package is variable being subject to the achievement of business and individual
objectives. It is the Committee’s intention to continue with this policy in the future.
Basic salary
A director’s basic salary is determined by the Remuneration and Nominations Committee annually and when an individual changes role.
Salaries are reviewed in November each year, with increases taking effect from 1 January in the following year.
The review carried out in November 2002 showed that the salaries of the executive directors had become out of line with the policy of the
Committee, as described above, due mainly to the rapid growth in the size and profitability of the company. It was considered important
that this position be corrected. As a result their new salaries from 1 January 2003 are - J. P . Carter £200,000, P . N. Hampden Smith £250,000
and F. J. McKay £425,000. TRA V IS PERKINS PLC
32
Annual bonus payments
The Committee establishes the objectives that must be met if a cash payment is to be made.  It believes that any annual bonus award should
be related to the interests of the company’s shareholders and that the principal measure of those interests is shareholder value. Hence,
bonus payments for all executive directors are based on a formula related to the level of net earnings per share achieved by the group. There
is also an element within the payment dependant on the achievement of individual objectives. The maximum performance related bonus
that can be paid is 55 per cent of basic annual salary. In order to determine whether the conditions for payment have been met, the
Committee assess both business and individual performance against predetermined objectives.
Share options
For many years, the company has further motivated directors and senior executives through granting them share options. The executive
share option scheme adopted in 2001, which covers all executive directors and other senior executives, provides for the grant of options
on an annual basis, with a value limit up to twice basic salary. Currently, for all eligible executives, options may only be exercised if the
growth in the company’s earnings per share as reported in the company’s published accounts exceeds inflation by at least 9 per cent over
a three year period. In the case of executive directors and certain other senior executives, achievement of this target will allow only 50 per
cent of options to be exercised. For all options to be exercisable, earnings per share growth must exceed inflation by at least 15 per cent
over the three year period. Between 9 per cent and 15 per cent the number of options exercisable is calculated on a straight line basis. The
Committee believes that these performance conditions, which are kept under review, are closely linked to shareholder value and are,
currently, sufficiently demanding. 
Under the 1995 executive share option scheme, options granted prior to 1998 were not subject to performance conditions. Those granted
between 1998 and 2000 are exercisable if the growth in the company’s earnings per share exceeds inflation by at least 6 per cent over a 
3 year period. The Committee considers these arrangements to be in line with market practice at the time the grants were made.
Pension arrangements
The general policy is for executive directors to be members of the company’s final salary pension scheme and to accrue benefits at a rate
of 1/30th of pensionable salary for each year’s pensionable service after appointment as a director. Normal retirement age is 60. As with all
other members, their dependants are eligible for dependants’ pensions and a payment of a lump sum in the event of death in service.
Except in the case of Mr. F. J. McKay, the pension arrangements provide for a pension in retirement based on the directors’ length of service
in the group pension scheme and the average of the best three of the last ten years of pensionable salary. Mr. F. J. McKay has been
guaranteed, on retirement at age 60, a pension of thirty per cent of his final pensionable salary including the pension from a previous
employment. This pension will be funded partly by the group scheme and by separate funded and unfunded arrangements established for
him. In the event that a director’s pension benefits are limited by the Inland Revenue “pensions cap”, the general policy is to pay an age
related annual salary supplement. Mr. P. N. Hampden Smith receives such a salary supplement.
For many years, bonus payments to executive directors and management formed a part of scheme members’ pensionable emoluments and
both the group and the employee contributed a proportion of any such bonus to the scheme funds. On 1 December 1995, the company
changed its policy so that, from that date, for pension scheme members not then eligible for bonus payments and for all future entrants to
the pension scheme, any such bonus payments that they may later become entitled to, would not form part of their pensionable salaries.
This does not affect scheme members, including executive directors, eligible for bonus payments prior to 1 December 1995 who will
continue to have such payments treated as part of their pensionable salaries.
There have been no changes in the basis of directors’ pension entitlements during the year. Except as described above for Mr. F. J. McKay,
there are no unfunded pension commitments or similar arrangements for directors. TRA V IS PERKINS PLC
33
Service contracts
The company’s policy for executive directors is to have contracts which are not for a fixed period, and which are terminable on 12 months
notice from the company, and 6 months from the director. It is not the policy to specify what compensation would be payable on
termination by the company. If such compensation was due, it would be calculated by reference to the unexpired part of the notice period,
and the director’s salary and other benefits, including pension rights, taking due account of the director’s duty to mitigate his loss. Service
contracts do not specify any particular level of compensation in the event of termination following change of control of the company.
Each of the executive directors has a service contract, the date of which is shown below, which will be available for inspection at the Annual
General Meeting.
J. P. Carter     6 August 2001 P. N. Hampden Smith     8 October 1996 F. J. McKay     1 November 1999
Non-executive directors
The policy of the board is to recruit non-executive directors of the highest calibre, with a breadth of skills and experience appropriate for
the company’s business. Non-executive directors are appointed for a period of 3 years, at the end of which the appointment may be
renewed by mutual agreement. It is the board’s policy that non-executive directors will not serve for more than 9 years. The remuneration
of the non-executive directors is determined by the board, and in 2002 the board received advice on this remuneration from Hay Group
Limited. Each non-executive director receives an annual fee, and from January 2003, Mr. M. B. Dearden and Mr. P. J. Maydon will receive
an additional fee for chairing the Audit Committee and the Remuneration and Nominations Committee, respectively. Mr. E. C. Adams will
also receive an additional fee for chairing the company’s pension trusts. Non-executive directors do not receive any other benefits and are
not eligible to join a pension scheme. No compensation is payable on termination of their employment, which may be without notice from
the company. They cannot participate in any of the company’s share option schemes. Non-executive directors do not have a service contract,
but each has received a letter of appointment expiring on the following dates:
E. C. Adams December 2005 M. B. Dearden November 2003 C. M. Fisher December 2005
P . J. Maydon May 2004 T. E. P. Stevenson September 2004
Total shareholder return
The company considers itself distinctive in its sector, as there are no directly comparable competitors in terms of size, demographic spread
or activities. The company measures the performance of its shares against the FTSE 250 Index which it considers the most appropriate
comparator group. The graph below shows total shareholder return for Travis Perkins’ shares over the last five years, relative to that index.
Total shareholder return is defined as a combination of growth in the company’s share price and dividends paid to shareholders.
300.0%
250.0%
200.0%
150.0%
100.0%
50.0%
12/97 12/98 12/99 12/00 12/01 12/02
---- Travis Perkins’ Total Shareholder Return ---- FTSE 250 Total Return TRA V IS PERKINS PLC
34
Directors’ shareholdings
The directors’ holdings of ordinary 10p shares of Travis Perkins plc at 31 December of each year were as follows:
2002 2001
Director Interest No. No.
T. E. P. Stevenson Beneficial owner 5,000 -
E. C. Adams Beneficial owner 105,249 105,249
J. P. Carter Beneficial owner 7,000 7,000
M. B. Dearden Beneficial owner 1,000 1,000
C. M. Fisher Beneficial owner 558,944 620,444
P . N. Hampden Smith Beneficial owner 6,783 6,783
F. J. McKay Beneficial owner 7,444 7,444
P . J. Maydon Beneficial owner 1,000 1,000
Details of directors’ share options are given on page 37. In addition, as potential beneficiaries under the Sharesave Scheme, Messrs. J. P.
Carter, P. N. Hampden Smith and F. J McKay are deemed to be interested in shares in the company held by Travis Perkins Quest Trustees
Limited, which at 31 December 2002 totalled nil shares (2001:135,934 shares). In addition, Mr. C. M. Fisher has an interest in loan notes
(as described in note 26) with a value of £1,742,402 (1 January 2002:£1,772,402). There were no changes in the holdings of the directors
between 31 December 2002 and the date of this report.
Travis perkins’ share price information
2002 2001
Mid-market price at 31 December 1,005.0p 849.0p
Highest mid-market price during the year 1,200.0p 849.0p
Average mid-market price during the year 1,025.3p 750.9p
Lowest mid-market price during the year 847.5p 648.5p
Audited information
Amount of directors’ emoluments
Details of directors’ remuneration are set out in the table below.
Basic Annual Benefits Gains on Total
salary bonus in kind share options remuneration
2002 2001 2002 2001 2002 2001 2002 2001 2002 2001
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Executive
J. P. Carter
1
180 85 99 41 16 6 - 40 295 172
P . N. Hampden Smith
2
230 191 105 82 8 6 - 13 343 292
F. J. McKay
3
335 300 179 144 5 17 541 - 1,060 461
Non-executive
T. E. P. Stevenson
4
100 32 - - - - - - 100 32
E. C. Adams
5
30 30 - - - - - 115 30 145
J. N. Clarke 30 30 - - - - - - 30 30
M. B. Dearden 30 30 - - - - - - 30 30
C. M. Fisher 30 30 - - - - - - 30 30
P . J. Maydon 30 30 - - - - - - 30 30
995 758 383 267 29 29 541 168 1,948 1,222 TRA V IS PERKINS PLC
35
Other amounts within directors’ emoluments are:
Pension
Total scheme Total
remuneration contributions emoluments
2002 2001 2002 2001 2002 2001
£’000 £’000 £’000 £’000 £’000 £’000
Executive
J. P. Carter 295 172 28 9 323 181
P. N. Hampden Smith 343 292 12 9 355 301
F. J. McKay 1,060 461 232 108 1,292 569
Non-executive
T. E. P. Stevenson 100 32 - - 100 32
E. C. Adams 30 145 - - 30 145
J. N. Clarke 30 30 - - 30 30
M. B. Dearden 30 30 - - 30 30
C. M. Fisher 30 30 - - 30 30
P. J. Maydon 30 30 - - 30 30
1,948 1,222 272 126 2,220 1,348
1 Appointed 1 July 2001.  2 Basic salary includes a £38,340 salary supplement (2001: £21,000) to enable Mr. P . N. Hampden Smith to arrange pension provision
for that part of his salary which is above the Inland Revenue approved limit. It also includes £1,500 fuel allowance.  3 Highest paid director. Basic salary includes
£9,135 car allowance and £1,096 fuel allowance.  4 Appointed 6 September 2001.  5 Executive director until 31 July 2000.
Part of each executive director’s remuneration may consist of benefits in kind not payable in cash, such as the provision of a company car,
a fuel card, and private healthcare insurance. No director receives an expense allowance which is chargeable to tax.
Directors’ pension entitlements
Pension entitlements of the executive directors during the year were as follows:
J. P. Carter P. N. Hampden Smith F. J. McKay
Age at 31 December 2002 41 42 57
Accrued pension at 31 December 2001 £’000 71 17 15
Accrued pension at 31 December 2002 £’000 83 20 28
Increase in accrued pension in 2002 £’000 12 3 13
Real increase in accrued pension in 2002 £’000 11 2 12
Transfer value of the real increase in accrued pension 
net of member’s contributions £’000 62 11 204
Value of increase in accrued benefit £’000 72 16 219
Member’s contributions towards pension £’000 10 5 15
Increase in transfer value net of member’s contributions £’000 45 5 202
Transfer value of benefits accrued at 31 December 2001 £’000 501 122 197
Transfer value of benefits accrued at 31 December 2002 £’000 556 132 414
The transfer values disclosed above do not represent a sum paid or payable to the individual director. Instead, they represent a potential
liability of the group pension scheme, and in the case of Mr. F. J. McKay, the separate arrangements previously described. TRA V IS PERKINS PLC
36
Share options 
The following options over ordinary shares have been granted under the 1984, the 1995 and the 2001 Executive Share Option Schemes
and the Travis Perkins Sharesave Schemes 1992 and 2002 and remained outstanding at 31 December 2002:
Note Outstanding at Granted Lapsed Exercised Outstanding at
1 January during during during 31 December Exercise
2002 year year year 2002 price
No. No. No. No. No.
Executive share options
1 992 - - - 992 318.0p
2 992 - - - 992 348.5p
3 140,500 - - (73,000) 67,500 307.0p
4 496 - - - 496 364.5p
5 496 - - - 496 470.5p
6 259,506 - - (103,749) 155,757 571.5p
7 248 - - - 248 458.0p
8 992 - - - 992 385.5p
9 20,000 - - - 20,000 696.0p
20,000 - - (20,000) - 668.5p
100,000 - - (100,000) - 594.0p
10 20,000 - - - 20,000 563.5p
11 25,000 - - - 25,000 602.5p
12 20,000 - - - 20,000 550.0p
13 2,063,449 - (39,000) (63,500) 1,960,949 756.0p
14 - 335,122 - - 335,122 1071.5p
2,672,671 335,122 (39,000) (360,249) 2,608,544
Sharesave options
12,155 - (98) (12,057) - 456.0p
2,339 - - (2,339) - 338.5p
15 92,927 - (8,227) (73,863) 10,837 522.5p
16 21,526 - - (18,706) 2,820 366.5p
17 368,488 - (7,063) (7,001) 354,424 412.5p
2,189 - - (2,189) - 229.5p
18 13,504 - (821) - 12,683 229.5p
19 206,693 - (13,888) (177,955) 14,850 511.0p
20 341,882 - (29,607) (3,584) 308,691 511.0p
21 268,491 - (32,385) (1,028) 235,078 464.0p
22 371,060 - (29,810) (573) 340,677 464.0p
23 256,277 - (30,607) (437) 225,233 609.5p
24 260,327 - (18,874) (80) 241,373 609.5p
25 - 295,502 (2,382) - 293,120 847.5p
26 - 247,605 (1,084) - 246,521 847.5p
2,217,858 543,107 (174,846) (299,812) 2,286,307 TRA V IS PERKINS PLC
37
Directors’ share options included within the previous table
Note Outstanding at Granted Lapsed Exercised Outstanding at Exercise
1 January during during during 31 December Price
2002 year year year 2002
No. No. No. No. No.
J. P. Carter 13 39,351 - - - 39,351 756.0p
14 - 29,398 - - 29,398 1071.5p
17 4,090 - - - 4,090 412.5p
P. N. Hampden Smith 6 30,000 - - - 30,000 571.5p
13 39,351 - - - 39,351 756.0p
14 - 31,031 - - 31,031 1071.5p
23 1,589 - - - 1,589 609.5p
F. J. McKay 100,000 - - (100,000) - 594.0p
13 79,365 - - - 79,365 756.0p
14 - 60,662 - - 60,662 1071.5p
293,746 121,091 - (100,000) 314,837
Options may be exercised during the following periods (or earlier or later under certain circumstances):
Executive share options:
1 Any time until 17 April 2004 8 Any time until 25 April 2009
2 Any time until 3 May 2005 9 Any time until 15 July 2009
3 Any time until 12 June 2005 10 From 11 April 2003 until 10 April 2010
4 Any time until 14 May 2006 11 From 8 September 2003 until 7 September 2010
5 Any time until 6 May 2007 12 From 10 October 2003 until 9 October 2010
6 Any time until 26 April 2008 13 From 4 July 2004 until 3 July 2011
7 Any time until 5 May 2008 14 From 10 April 2005 until 9 April 2012
Sharesave options:
15 Any time until 31 May 2003 21 From 1 December 2003 until 31 May 2004
16 Any time until 31 May 2003 22 From 1 December 2005 until 31 May 2006
17 From 1 December 2003 until 31 May 2004 23 From 1 December 2004 until 31 May 2005
18 From 1 December 2003 until 31 May 2004 24 From 1 December 2006 until 31 May 2007
19 Any time until 31 May 2003 25 From 1 December 2005 until 31 May 2006
20 From 1 December 2004 until 31 May 2005 26 From 1 December 2007 until 31 May 2008
Mr. F. J. McKay exercised 5,050 executive share options on 11 November 2002 when the mid-market price of the company’s shares was
1,141.5 pence and on 12 November 2002 he exercised 94,950 executive share options when the mid-market price was 1,140 pence.
At 31 December 2002, in addition to the directors, there were 201 employees (2001: 207) who had holdings of executive share options
and 2,940 employees (2001: 2,688) who were participating in the Sharesave Scheme.
Shareholders’ approval
The shareholders will be invited to approve the remuneration policy set out in this Report at the Annual General Meeting, at which the
chairman of the Committee will be available to answer any questions.
Approved by the board and signed on its behalf by P. J. Maydon, Chairman, Remuneration and Nominations Committee.
7 March 2003 TRA V IS PERKINS PLC
38
Directors’ report
For the year ended 31 December 2002
The directors present their annual report and audited accounts for the year ended 31 December 2002.
Activities
The principal activities of the group are the marketing and distribution of timber, building and plumbing materials and the hiring of tools
to the building trade and industry generally within the United Kingdom.
Review of group’s position, developments and future prospects
These subjects are dealt with as part of the chairman’s statement, the chief executive’s review and the finance director’s report on pages 3
to 14.
Results and dividends
The group results and dividends for the year ended 31 December 2002 are set out on page 42. If approved, the final dividend will be paid
on 16 May 2003 to those shareholders on the register on 22 April 2003.
Directors
The directors at 31 December 2002 were as listed on pages 24 and 25. Mr. J. N. Clarke served as a director throughout the year until his
retirement on 31 December 2002.
In accordance with the company’s Articles of Association, Mr. E. C. Adams, Mr. M. B. Dearden and Mr. P. J.Maydon retire by rotation and,
being eligible, offer themselves for re-election. As non-executive directors, none of them has a service contract. 
None of the directors had an interest in any contract to which the company or any of its subsidiaries was a party during the year.
The disclosable interests of directors at 31 December 2002, including holdings, if any, of wives and of children aged under 18, were as
detailed in the Remuneration Report on pages 34 and 37.
Substantial interests
At 7 March 2003, the only substantial interests (that is, 3 per cent or more) in the company’s share capital notified to the company were as
follows:
Mr. E. R. A. Travis 9,228,070 Beneficial and non-beneficial 8.189 per cent
Close company status
The close company provisions of the Income and Corporation Taxes Act 1988 do not apply to the company.
Employee participation, disabled persons and charitable donations
Statements on these matters are contained in the corporate social responsibility statement on pages 16 and 17.
Supplier payment policy
The group’s policy is to pay all of its suppliers in accordance with established terms. Group trade creditors at 31 December 2002 represent
42.4 days (2001: 45.3 days) of average purchases of goods and services. The company has no trade creditors.
Annual general meeting special business
The following items are to be proposed at the forthcoming Annual General Meeting as items of special business. TRA V IS PERKINS PLC
39
Resolution 7: directors’ remuneration report 
In accordance with the Directors’ Remuneration Report Regulations 2002, this resolution seeks shareholders’ approval of the directors’
remuneration report set out on pages 31 to 37.
Resolution 8: renewal of authority to allot shares
Under the Companies Act 1985 the board is not able to allot shares except with the general or specific authority of shareholders. Resolution
8 renews the board’s authority to issue share capital up to an aggregate nominal amount of £2,232,216 (being the lesser of the company’s
authorised but unissued share capital and one third of its issued capital). This represents 19.8 per cent of the issued ordinary share capital
of the company as at 7 March 2003. The authority extends until the earlier of the conclusion of the next Annual General Meeting and the
date fifteen months from the passing of this resolution. The board does not have any present intention of exercising this authority other
than for the purposes of the company’s employee share option schemes.
Resolution 9: limited authority to allot shares for cash
The Companies Act 1985 provides that, when equity securities are being issued for cash such securities must first be offered to existing
shareholders unless the board is given a power to allot them without regard to that requirement. Resolution 9 therefore empowers the
board to allot for cash, equity securities of a nominal amount not exceeding £563,389 (representing 5 per cent of the issued share capital)
without first offering such securities to existing ordinary shareholders. The authority extends until the earlier of the conclusion of the next
Annual General Meeting and the date fifteen months from the passing of this resolution. Any issue of shares for cash will, however, still be
subject to the requirements of the UK Listing Authority.
Resolution 10: authority to purchase own shares
Your directors believe that it is in the best interests of shareholders that the company should have the flexibility to make market purchases
of its own shares (up to 10 per cent of the issued share capital) for cancellation. The effect of any such purchases would be to reduce the
number of shares in issue and the directors would only make such purchases after consideration of the effect on earnings per share and
the longer term benefits for shareholders. The fact that such authority is being sought should not be taken to imply that shares would be
purchased at any particular price or indeed at all. At 7 March 2003, there were options outstanding over 4,820,778 ordinary shares,
representing 4.28 per cent of the company’s issued ordinary share capital. This would rise to 4.75 per cent if the authority being sought
were to be exercised in full.
Auditors
Deloitte & Touche are willing to continue in office and a resolution for their reappointment as auditors will be proposed at the forthcoming
Annual General Meeting.
By order of the board
A. S. Pike   Secretary 7 March 2003 TRA V IS PERKINS PLC
40
Statement of directors’ responsibilities
For the year ended 31 December 2002
Uk company law requires the directors to prepare financial statements for each financial year that give a true and fair view of the state of
affairs of the company and the group as at the end of the financial year and of the profit or loss of the group for that period. In preparing
those financial statements, the directors are required to:
(i) select suitable accounting policies and then apply them consistently;
(ii) make judgments and estimates that are reasonable and prudent; and
(iii) state whether applicable accounting standards have been followed.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial
position of the company and the group and to enable them to ensure that the financial statements comply with the Companies Act 1985.
They are also responsible for safeguarding the assets of the group and hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
Independent auditors’ report to the members of Travis Perkins plc
For the year ended 31 December 2002
We have audited the financial statements for Travis Perkins plc for the year ended 31 December 2002 which comprise the profit and loss
account, the balance sheets, the cash flow statement, the statement of total recognised gains and losses, the reconciliation of movements
in equity shareholders’ funds, the analysis of actuarial gains and losses, accounting policies and the related notes 1 to 32. These financial
statements have been prepared under the accounting policies set out therein. We have also audited the information in the part of the
directors’ remuneration report that is described as having been audited.
This report is made solely to the company’s members, as a body, in accordance with section 235 of the Companies Act 1985. Our audit
work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditors’
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than
the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As described in the statement of directors’ responsibilities, the company’s directors are responsible for the preparation of financial
statements in accordance with applicable United Kingdom law and accounting standards. They are also responsible for the preparation of
the other information contained in the annual report including the directors’ remuneration report. Our responsibility is to audit the financial
statements and the part of the directors’ remuneration report described as having been audited in accordance with relevant United Kingdom
legal and regulatory requirements, auditing standards.
We report to you our opinion as to whether the financial statements give a true and fair view and whether the financial statements and
the part of the directors’ remuneration report described as having been audited have been properly prepared in accordance with the
Companies Act 1985. We also report to you if, in our opinion, the directors’ report is not consistent with the financial statements, if the
company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or
if information specified by law regarding directors’ remuneration and transactions with the company and other members of the group is
not disclosed. TRA V IS PERKINS PLC
41
We review whether the corporate governance statement reflects the company’s compliance with the seven provisions of the Combined
Code specified for our review by the Listing Rules of the Financial Services Authority, and we report if it does not. We are not required to
consider whether the board’s statements on internal control cover all the risks and controls, or form an opinion on the effectiveness of the
group’s corporate governance procedures or its risk and control procedures.
We read the directors’ report and the other information contained in the annual report, for the above year as described in the contents
section, including the unaudited part of the directors’ remuneration report, and consider the implications for our report if we become aware
of any apparent misstatements or material inconsistencies with the financial statements.
Basis of opinion
We conducted our audit in accordance with United Kingdom Auditing Standards issued by the Auditing Practices Board. An audit includes
examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements and the part of the directors’
remuneration report described as having been audited. It also includes an assessment of the significant estimates and judgments made by
the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the circumstances of
the company and the group, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide
us with sufficient evidence to give reasonable assurance that the financial statements and the part of the directors’ remuneration report
described as having been audited are free from material misstatement, whether caused by fraud or other irregularity or error. In forming
our opinion we also evaluated the overall adequacy of presentation of information in the financial statements and the part of the directors’
remuneration report described as having been audited.
Opinion
In our opinion:
• the financial statements give a true and fair view of the state of affairs of the company and the group as at 31 December 2002 and of
the profit of the group for the year then ended; and
• the financial statements and the part of the directors’ remuneration report described as having been audited, have been properly
prepared in accordance with the Companies Act 1985.
Deloitte & Touche
Chartered Accountants and Registered Auditors
Nottingham
7 March 2003 TRA V IS PERKINS PLC
42
Consolidated profit and loss account
For the year ended 31 December 2002
£m Notes Existing Acquisitions 2002 2001
operations Total Restated
Turnover 1 1,354.3 63.2 1,417.5 1,279.3
Operating profit before amortisation of goodwill 153.1 5.1 158.2 129.1
Amortisation of goodwill (12.1) - (12.1) (10.5 )
Operating profit after amortisation of goodwill 2 141.0 5.1 146.1 118.6
Profit on sale of properties 1.2 - 1.2 1.4
Profit on ordinary activities before 
interest and taxation 142.2 5.1 147.3 120.0
Net interest payable 5 (8.9) (10.7)
Other finance (cost)/income 6 (0.8) 1.2
Profit on ordinary activities before taxation 137.6 110.5
Tax on profit on ordinary activities 7 (45.8) (35.5 )
Profit on ordinary activities after taxation 91.8 75.0
Dividends paid and proposed 8 (21.9) (19.3)
Retained profit transferred to reserves 22 69.9 55.7
Earnings per ordinary share
Basic 9 81.9p 67.3p
Diluted 9 80.7p 66.7p
Adjusted 9 91.6p 75.5p
Dividend per ordinary share 8
19.5
p
17.2p
All results relate to continuing activities. The results disclosed in the group profit and loss account are not materially
different from the results on an unmodified historical cost basis.
Details of the restatement of the 2001 figures are given in note 22. TRA V IS PERKINS PLC
43
Balance sheets
As at 31 December 2002
The Group The Company
£m Notes 2002 2001 2002 2001
Restated
Fixed assets
Tangible assets 10 258.2 226.4 0.1 0.1
Intangible assets - goodwill 11 249.9 187.3 - -
Investments 12 4.6 4.9 493.0 402.0
512.7 418.6 493.1 402.1
Current assets
Stocks 13 152.1 132.7 - -
Debtors 14 250.4 215.7 132.1 76.2
Properties held for resale 15 1.0 1.8 - -
Short term investments - cash deposits 30.0 - 30.0 -
Cash at bank and in hand 16 - 37.0 - 14.7
433.5 387.2 162.1 90.9
Creditors: amounts falling due within one year 17 (300.6) (287.4 ) (89.7) (77.8 )
Net current assets 132.9 99.8 72.4 13.1
Total assets less current liabilities 645.6 518.4 565.5 415.2
Creditors: amounts falling due after more 
than one year 18 (150.3) (100.0 ) (356.7) (225.0 )
Provisions for liabilities and charges 19 (14.1) (8.9 ) - -
Net assets excluding pension deficit 481.2 409.5 208.8 190.2
Pension deficit 3 (85.8) (22.7 ) - -
Net assets including pension deficit 395.4 386.8 208.8 190.2
Capital and reserves
Called up share capital 21 11.3 11.2 11.2 11.2
Share premium account 22 65.7 61.0 64.6 59.9
Revaluation reserves 22 31.2 31.5 - -
Profit and loss account 22 287.2 283.1 133.0 119.1
Total equity shareholders’ funds 395.4 386.8 208.8 190.2
The financial statements were approved by the board of directors on 7 March 2003. 
Signed on behalf of the board of directors.
F. J. McKay
P. N. Hampden Smith
}
Directors TRA V IS PERKINS PLC
44
Statement of total recognised gains and losses 
For the year ended 31 December 2002
£m 2002 2001
Restated
Profit attributable to shareholders of the company 91.8 75.0
Actuarial gains/losses recognised in the pension schemes (91.2 ) (43.6 )
Deferred tax on pension deficit 27.0 10.7
Revaluation of property transferred to current assets - (0.3 )
Unrealised surplus on revaluation of investment properties 0.1 0.6
Total recognised gains and losses relating to the year 27.7 42.4
Prior period adjustment as a result of FRS 19 (7.3 )
Total gains recognised since last Annual Report 20.4
Analysis of actuarial gains and losses included in the
statement of total recognised gains and losses
For the year ended 31 December 2002
£m 2002 2001
Difference between actual and expected return on scheme assets (43.1 ) (37.7 )
Experience gains and losses arising on scheme liabilities (15.4 ) (1.5 )
Effects of changes in assumptions underlying the present value of scheme liabilities (32.7 ) (4.4 )
Total actuarial gains and losses recognised in the Statement of
Total Recognised Gains and Losses (91.2 ) (43.6 )
Reconciliation of movements in equity shareholders’ funds
For the year ended 31 December 2002
£m 2002 2001 
Restated
Equity shareholders’ funds at 1 January as previously stated 394.1 356.5
Prior period adjustment as a result of FRS 17 - 7.9
Prior period adjustment as a result of FRS 19 (7.3 ) (5.6 )
Equity shareholder’s funds at 1 January as restated 386.8 358.8
Profit attributable to shareholders of the company 91.8 75.0
Dividends (21.9 ) (19.3 )
Retained profit transferred to reserves 69.9 55.7
New share capital subscribed 2.8 4.9
Revaluation of property transferred to current assets - (0.3 )
Unrealised surplus on revaluation of investment properties 0.1 0.6
Actuarial gains and losses (net of deferred tax) (64.2 ) (32.9 )
Net increase in shareholders’ funds 8.6 28.0
Equity shareholders’ funds at 31 December 395.4 386.8 TRA V IS PERKINS PLC
45
Consolidated cash flow statement 
For the year ended 31 December 2002
£m Notes 2002 2001
Net cash inflow from operating activities 27 179.8 166.9
Returns on investments and servicing of finance
Interest received 0.7 0.1
Interest paid (9.0 ) (13.5 )
Dividends paid to minority interest - (0.3 )
Net cash outflow for returns on
investments and servicing of finance (8.3 ) (13.7 )
Taxation
UK corporation tax paid (42.7 ) (34.7 )
Capital expenditure and financial investment
Purchase of tangible fixed assets (35.4 ) (29.1 )
Receipts from sales of tangible fixed assets 3.0 4.4
Receipts from sale of own shares held 0.8 0.5
Net cash outflow for capital expenditure
and financial investment (31.6 ) (24.2 )
Acquisitions
Purchase of business undertakings 30 (103.3 ) (15.1 )
Net (overdrafts)/cash acquired with business undertakings 30 (8.2 ) 0.1
Purchase of minority interest - (1.1 )
Net cash outflow for acquisitions (111.5 ) (16.1 )
Equity dividends paid (20.0 ) (17.8 )
Cash(outflow)/inflow before use of liquid resources and financing (34.3 ) 60.4
Management of liquid resources
Cash outflow to short term deposits 29 (30.0 ) -
Financing
Issue of ordinary share capital 2.8 4.9
New bank loans 50.0 -
Repayment of bank loans (25.0 ) (25.0 )
Repayment of unsecured loan notes 29 (0.7 ) (3.3 )
Capital element of finance lease rentals 29 - (0.1 )
Net cash inflow/(outflow) from financing 27.1 (23.5 )
(Decrease)/increase in cash in the year (37.2 ) 36.9 TRA V IS PERKINS PLC
46
Accounting policies
For the year ended 31 December 2002
The financial statements have been prepared in accordance with applicable accounting standards. FRS19 - Deferred Tax has become effective
for the first time this year, and has been fully implemented in these financial statements, which has resulted in a prior period adjustment. Further
details are given in note 22 on page 61.
Compliance with SSAP19 “Accounting for Investment Properties” requires departure from the requirements of the Companies Act 1985
relating to depreciation and an explanation of the departure is given in note (f) below.
The particular accounting policies adopted are:
(a)Basis of accounting
The accounts have been prepared under the historical cost convention modified by the revaluation of certain freehold, leasehold and
investment properties. The group has adopted the transitional rules within FRS 15, which allow it to maintain the carrying value of the
revalued assets (excluding investment properties) at their modified cost.
(b)Basis of preparation
The consolidated financial statements consolidate the accounts of the company and all its subsidiaries.
The cost of acquisition represents the cash value of the consideration and/or the market value of the shares issued on the date the offer
became unconditional, plus expenses. At the date of the acquisition an assessment is made of the fair value of the net assets. It is this fair
value, which is incorporated into the consolidated accounts.
Any excess cost over the fair value of net assets represents goodwill. Prior to 1 January 1998, goodwill was written off directly to reserves
as a matter of accounting policy. From 1 January 1998, in accordance with FRS10, goodwill is capitalised and amortised over its estimated
useful life, which the directors consider to be 20 years.
(c) Depreciation
Depreciation is provided on tangible fixed assets on a straight line basis to write off the cost or valuation of those assets over their estimated
useful lives. The principal rates of depreciation are:
Freehold buildings Over the estimated useful life of the building
Leasehold property Over the term of the lease
Fixed plant and equipment 10%-20% per annum
Mobile plant 12
1
/2% per annum
Motor vehicles 12
1
/2%-20% per annum
Computer installations 25% per annum
Tools and plant for hire 25% per annum
No depreciation is provided on freehold land or investment properties.
(d)Properties held for resale
Properties held for resale are surplus to the group’s requirements and are transferred to current assets and shown at the lower of cost and
net realisable value. The appropriate transfer from revaluation reserves is offset against the value transferred from fixed assets. Profits on the
sale of properties are calculated by deducting the amounts at which they were stated in the balance sheet from sale proceeds net of expenses.
(e) Investments
(i) In the balance sheet of the parent company, investments in subsidiaries are stated at cost less amounts written off.
(ii) Investments held as current assets are stated at the lower of cost and net realisable value.
(iii) Investments in own shares are held at cost, being the market value on the date the shares were issued by the parent company. TRA V IS PERKINS PLC
47
(f) Investment properties
In accordance with SSAP19, investment properties are revalued at open market value annually by either independent professional third party
valuers or the directors. The aggregate surplus or deficit is transferred to revaluation reserve, subject to individual impairments in value. No
depreciation is provided in respect of investment properties.
However, the Companies Act 1985 requires that all properties should be depreciated. This requirement conflicts with the generally accepted
accounting principle set out in SSAP 19.
The directors consider that these properties are not held for trading use but are held for their investment potential. It is therefore necessary
to adopt SSAP 19 as to depreciate them would not give a true and fair view.
If this departure from the Act had not been made, the profit for the financial year would have been reduced by depreciation. However, the
amount of depreciation cannot reasonably be quantified because depreciation is only one of the many factors reflected in the annual valuation.
(g) Leases
(i) Finance leases
Assets held under finance leases and the related lease obligations are recorded in the balance sheet at the fair value of the leased assets
at the inception of the leases. The amounts by which the lease payments exceed the recorded lease obligations are treated as finance
charges, which are amortised over each lease term to give a constant rate of charge on the balance of the obligation.
(ii) Operating leases
Rental costs under operating leases are charged to the profit and loss account in equal annual instalments over the periods of the leases.
(h)Stocks
Stocks are valued at the lower of cost and net realisable value, with allowance being made for obsolete and slow moving items.
(i) Taxation
Current UK corporation tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted
or substantively enacted by the balance sheet date.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions
or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet
date. Timing differences are differences between the group’s taxable profits and its results as stated in the financial statements that arise from
the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.
A net deferred tax asset is regarded as recoverable and therefore recognised only when, on the basis of all available evidence, it can be
regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences
can be deducted.
Deferred tax is not recognised when fixed assets are revalued unless by the balance sheet date there is a binding agreement to sell the
revalued assets and the gain or loss expected to arise on sale had been recognised in the financial statements.  Neither is deferred tax
recognised when fixed assets are sold and it is more likely than not that the taxable gain will be rolled over, being charged to tax only if and
when the replacement assets are sold.
Deferred tax is measured at the standard tax rates that are expected to apply in the periods in which the timing differences are expected to
reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is measured
on a non-discounted basis. TRA V IS PERKINS PLC
48
(j) Pension costs   
For defined benefit schemes, operating profit is charged with the cost of providing pension benefits earned by employees in the period. The
expected return on pension scheme assets less the interest on pension scheme liabilities is shown as a finance cost within the profit and loss account.
Actuarial gains and losses arising in the period from the difference between actual and expected returns on pension scheme assets,
experience gains and losses on pension scheme liabilities and the effects of changes in demographics and financial assumptions are included
in the Statement of Total Recognised Gains and Losses.
Recoverable pension scheme surpluses and pension scheme deficits and the associated deferred tax balances are recognised in full and
included in the balance sheet.
The pension costs of defined contribution schemes are charged to the profit and loss account in the period in which they arise.
(k)Financial instruments
Derivative instruments utilised by the group are interest rate swaps and forward exchange contracts. The group does not enter into
speculative derivative contracts. All such instruments are used for hedging purposes to alter the risk profile of an existing underlying
exposure of the group in line with the group’s risk management policies. Amounts payable or receivable in respect of interest rate swaps
are recognised as adjustments to interest expense over the periods of the contracts.
Transactions denominated in foreign currencies are recorded at the rates ruling on the date of the transaction, unless matching forward
foreign exchange contracts have been entered into, in which case the rate specified in the relevant contract is used. At the balance sheet
date, unhedged monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at that date. TRA V IS PERKINS PLC
49
Notes to the accounts
For the year ended 31 December 2002
1. Turnover
Turnover represents sales of timber, building and plumbing supplies and equipment rental (excluding VAT) to customers of the group in the
United Kingdom.
2. Operating profit after amortisation of goodwill
Existing Acquisitions 2002 2001 
£m operations Restated
Turnover 1,354.3 63.2 1,417.5 1,279.3
Cost of sales (930.4 ) (45.3 ) (975.7 ) (893.8 )
Gross profit 423.9 17.9 441.8 385.5
Selling and distribution costs (220.4 ) (8.7 ) (229.1 ) (210.6 )
Administrative expenses (63.6 ) (4.1 ) (67.7 ) (57.6 )
Other operating income 1.1 - 1.1 1.3
Operating profit after amortisation of goodwill 141.0 5.1 146.1 118.6
Following a review of its accounts, the company has adopted the format 1 profit and loss disclosure for the first time in 2002. The directors
are of the opinion that this provides a more useful analysis to readers of the accounts. The prior year figures have been restated.
2002 2001
£m £m
Items included above but not disclosed elsewhere:
Total depreciation and other amounts written off
tangible and intangible fixed assets (34.0 ) (29.5 )
(Loss)/profit on sale of plant and equipment (0.3 ) 0.1
Rental income 1.4 1.3
Hire of vehicles, plant and machinery (9.7 ) (11.1 )
Other leasing charges – property (14.9 ) (12.3 )
Group audit fee (Company audit fee: £16,320; 2001 £16,000) (0.2 ) (0.1 )
Other amounts paid to Auditors – taxation (0.2 ) (0.2 )
Goodwill amortisation of £12.1 million (2001: £10.5 million) and depreciation of leased assets of £0.1 million (2001: £0.2 million) are
included within total depreciation and other amounts written off tangible and intangible fixed assets.
3. Pension arrangements
defined benefit scheme
During the year, the group operated one final salary scheme: the Travis Perkins Pensions and Dependants’ Benefit Scheme (the “Group
Scheme”), the assets of which were held in a separate trustee administered fund, funded by contributions from the group companies and
the employees. 
Contributions are paid to the trustees on the basis of advice from an independent professionally qualified actuary who carries out a valuation
of each scheme every three years. TRA V IS PERKINS PLC
50
A full actuarial valuation of the Group Scheme was carried out on 30 November 2002, then updated to 31 December 2002 by a qualified actuary.
(a) The major assumptions used by the actuary were (in nominal terms):
At 31 December 2002 At 31 December 2001 At 31 December 2000
Rate of increase in salaries 3.8% 4.0% 4.0%
Rate of increase of pensions in payment 2.3%  (post 1997) 2.5%  (post 1997) 2.5%  (post 1997)
3.0%  (pre 1997) 3.0%  (pre 1997) 3.0%  (pre 1997)
Discount rate 5.5% 5.9% 6.0%
Inflation assumption 2.3% 2.5% 2.5%
(b) The assets in the scheme and the expected rate of return (net of allowance for administration expenses) were:
At 31 December 2002 At 31 December 2001 At 31 December 2000
Expected £m Expected £m Expected £m
return return return
Equities 7.30% 126.0 6.90% 152.9 6.65% 172.4
Bonds 4.30% 14.6 4.85% 22.5 4.63% 21.3
Corporate bonds 5.30% 8.0 -- --
Total fair value of assets 148.6 175.4 193.7
Actuarial value of liability (271.1 ) (207.8 ) (190.4 )
(Deficit)/surplus in the scheme (122.5 ) (32.4 ) 3.3
Related deferred tax asset/(liability) 36.7 9.7 (1.0 )
Net pension (liability)/asset (85.8 ) (22.7 ) 2.3
Included in equities and bonds at 31 December 2001 were £6.6 million and £0.8 million respectively of cash held by investment managers,
which were fully invested in equities and bonds in those amounts on 10 January 2002.
(c) Analysis of amount charged to operating profit 2002 2001
£m £m
Current service cost 7.1 6.1
(d) Movement in scheme (deficit)/surplus during year 2002 2001
£m £m
(Deficit)/surplus at 1 January (32.4 ) 3.3
Current service cost (7.1 ) (6.1 )
Contributions 9.0 12.8
Other finance (cost)/income (0.8 ) 1.2
Actuarial loss (91.2 ) (43.6 )
Deficit at 31 December (122.5 ) (32.4 )
(e) Other pension costs 2002 2001
£m £m
Other pension costs per the profit and loss account 7.1 6.1
Amounts included as other finance cost/(income) 0.8 (1.2 )
Total amount recognised in the Statement of Total Recognised Gains and Losses 91.2 43.6
Total pension costs 99.1 48.5 TRA V IS PERKINS PLC
51
(f) History of experience gains and losses 2002 2001 2000
Difference between the expected and the actual return on scheme assets
Amount £(43.1)m £(37.7)m £(21.6)m
Percentage of scheme assets 29.0% 21.5% 11.2%
Experience gains and losses on scheme liabilities
Amount £(15.4)m £(1.5)m £1.8m
Percentage of the present value of scheme liabilities 5.7% 0.7% 0.9%
Effect of changes in assumptions underlying the present value of scheme liabilities
Amount £(32.7)m £(4.4)m £(5.3)m
Percentage of the present value of scheme liabilities 12.1% 2.1% 2.8%
Total amount recognised in the Statement of Total Recognised Gains and Losses
Amount £(91.2)m £(43.6)m £(25.1)m
Percentage of the present value of scheme liabilities 33.6% 21.0% 13.2%
(g) Change in assumptions
Of the change in assumptions loss of £32.7 million, £20 million reflects recognition of the impact on pension liabilities of the latest widely
recognised life expectancy tables further adjusted to allow for projected improvements over the next 20 years.
defined contribution scheme
In addition to the Group Scheme, there is also a small group personal pension plan for employees of a subsidiary. The scheme is a defined
contribution scheme. Contributions in the year were £0.1 million.
4. Information regarding employees and directors 2002 2001
(a) Average number of persons employed No. No.
Sales 6,378 5,903
Distribution 1,217 1,130
Administration 902 859
8,497 7,892
(b) Staff costs
Wages and salaries (153.8) (138.7)
Social security costs (12.6) (11.3)
Other pension costs (7.2) (6.1)
Disclosures on directors’ share options, remuneration, long-term incentive schemes, pension contributions and pension entitlements
required by the Companies Act 1985 and those specified for audit by the Financial Services Authority are shown on pages 34 to 37 within
the Remuneration Report on pages 31 to 37 and form part of these audited financial statements.
5. Net interest payable 2002 2001
£m £m
Interest on overdrafts and short term loans repayable within 5 years (9.0) (10.0)
Interest on unsecured loans (0.6) (0.8)
Total interest payable (9.6) (10.8)
Interest receivable and similar income 0.7 0.1
Net interest payable (8.9) (10.7)
Interest cover is 18 times (2001: 12 times). It is calculated by dividing operating profit before goodwill amortisation by the net interest
payable (excluding other finance costs/income). TRA V IS PERKINS PLC
52
6. Other finance cost/income 2002 2001
£m £m
Expected return of scheme assets 11.5 12.7
Interest on pension liabilities (12.3) (11.5)
Net (cost)/income (0.8) 1.2
7. Tax on profit on ordinary activities 2002 2001
Restated
£m £m
(a)  Tax charges
Current tax
UK corporation tax at 30% (2001: 30%) - current year 44.8 35.0
- prior year - (1.2)
Total current tax 44.8 33.8
Deferred tax at 30% (2001: 30%)
Originations and reversal of timing differences 1.0 1.7
Total deferred tax 1.0 1.7
Total tax on profit on ordinary activities 45.8 35.5
(b)  Tax reconciliation
The differences between the total current tax shown above and the amount calculated by applying the standard rate of UK corporation tax
to the profit before tax is as follows.
2002 2001
£m £m
Group profit on ordinary activities before tax 137.6 110.5
Tax on group profit on ordinary activities at standard UK corporation tax rate of 30% (2001:30%) 41.3 33.2
Effects of:
Net expenses not deductible for tax purposes (principally goodwill amortisation) 5.4 3.9
Capital allowances in excess of depreciation (1.8) (2.4)
Rollover relief on profit on disposal of property (0.3) (0.4)
Adjustments to tax charge in respect of previous periods - (1.2)
Other timing differences 0.2 0.7
Group current tax charge for period 44.8 33.8
Deferred tax of £10.0 million (2001: £9.9 million) has not been provided on revalued fixed assets and fixed assets subject to rollover relief.
At present, it is not envisaged that any tax will become payable in the foreseeable future.
The group’s planned level of capital investment is expected to remain at similar levels. Therefore, it expects to be able to claim capital
allowances in excess of depreciation in future years, at a similar level to the current year.
The taxation charge is based on profit before tax for the year of the UK standard rate. There is no tax charge on profits on disposal of
properties due to claims for rollover relief for which no deferred taxation provision has been made, or a tax credit in respect of the
amortisation of goodwill. TRA V IS PERKINS PLC
53
8. Dividends 2002 2001
£m £m
Interim 6.1 pence per share (2001: 5.4 pence per share) 6.8 6.1
Proposed final 13.4 pence per share (2001: 11.8 pence per share) 15.1 13.2
21.9 19.3
Travis Perkins Quest Trustees Limited has waived its right to the dividend payable other than 0.01 pence on each ordinary share it holds in
the parent company.
9. Earnings per ordinary share
(a) Basic earnings per ordinary share 2002 2001
Basic earnings per ordinary share are calculated from the following ratio:
Profit on ordinary activities after taxation £91.8m £75.0m
Average number of shares in issue 112,177,252 111,454,347
(b) Diluted earnings per ordinary share 2002 2001
Diluted earnings per ordinary share are calculated from the following ratio:
Profit on ordinary activities after taxation £91.8m £75.0m
Average number of shares including outstanding options 113,835,241 112,381,453
The difference in the average number of shares in issue used as the denominator for the calculations of basic and diluted earnings per
share is due to the premium element of share options still outstanding at the end of each financial period, based on the average mid-
market price for that year. The adjustment to the number of shares is:
2002 2001
No. No.
Premium element of share options based on average 
mid-market share price for the year 1,657,989 927,106
(c) Adjusted earnings per ordinary share
Adjusted earnings per ordinary share are calculated based upon earnings before amortisation of goodwill and profit on the sale of
properties and are presented in addition to the basic earnings per share calculated in accordance with FRS 3 and FRS 14 since, in the
opinion of the directors, this presents a better like-for-like comparison of the earnings of the group between the relevant periods.
Basic earnings per share may be reconciled to adjusted earnings per share (before amortisation of goodwill and profit on the sale of
properties) as follows:
2002 2001
Restated
Adjusted earnings per ordinary share 91.6p 75.5p
Amortisation of goodwill (10.8)p (9.4)p
Profit on sale of properties 1.1p 1.2p
Basic earnings per ordinary share 81.9p 67.3p TRA V IS PERKINS PLC
54
10. Tangible fixed assets The Group The Company
Long Short Plant and
Freehold leases leases equipment Total Total
1
£m £m £m £m £m £m
Cost or valuation
At 1 January 2002 147.4 14.0 5.5 136.5 303.4 0.3
Additions 4.0 - 0.9 30.5 35.4 0.1
Additions from acquired businesses 8.8 0.3 1.2 9.7 20.0 -
Disposals (0.3 ) - - (13.9 ) (14.2 ) -
At 31 December 2002 159.9 14.3 7.6 162.8 344.6 0.4
Accumulated depreciation
At 1 January 2002 6.0 0.7 0.8 69.5 77.0 0.2
Charged this year 2.7 0.3 0.4 18.5 21.9 0.1
Disposals - - - (12.5 ) (12.5 ) -
At 31 December 2002 8.7 1.0 1.2 75.5 86.4 0.3
Net book value
At 31 December 2002 151.2 13.3 6.4 87.3 258.2 0.1
At 31 December 2001 141.4 13.3 4.7 67.0 226.4 0.1
1
Total company fixed assets comprise plant and equipment only.
The cost element of the fixed assets carrying value is analysed as follows:
The Group The Company
Long Short Plant and
Freehold leases leases equipment Total Total
£m £m £m £m £m £m
At valuation 78.6 6.2 2.6 - 87.4 -
At cost 81.3 8.1 5.0 162.8 257.2 0.4
159.9 14.3 7.6 162.8 344.6 0.4
Those freehold and leasehold properties included at valuation in the consolidated balance sheet were revalued at their open market value
on an existing use basis. The valuations were performed as at 31 December 1999 by an independent professional valuer, Lambert Smith
Hampton, Consultant Surveyors and Valuers.
Included within freehold property is land with a value of £68.7 million (2001: £64.8 million) which is not depreciated.
The net book value of plant and equipment includes approximately £0.4 million (2001: £0.4 million) within the group figures and £nil 
(2001: £nil) within the company figures in respect of assets held under finance leases.
Comparable amounts determined according to the historical cost convention:
The Group The Company
Long Short Plant and
Freehold leases leases equipment Total Total
£m £m £m £m £m £m
Cost 150.9 13.3 12.4 162.8 339.4 0.4
Accumulated depreciation (28.6 ) (1.9 ) (4.4 ) (75.5 ) (110.4 ) (0.3 )
Net book value
At 31 December 2002 122.3 11.4 8.0 87.3 229.0 0.1
At 31 December 2001 112.3 11.3 6.2 67.0 196.8 0.1 TRA V IS PERKINS PLC
55
11. Intangible assets - goodwill The Group
Cost £m
At 1 January 2002 as previously stated 213.6
Prior period adjustment arising from FRS 19 implementation (1.1 )
At 1 January 2002 as restated 212.5
Acquisitions in the current year 74.7
At 31 December 2002 287.2
Accumulated amortisation
At 1 January 2002 as previously stated 25.3
Prior period adjustment arising from FRS 19 implementation (0.1 )
At 1 January 2002 as restated 25.2
Provided in the year 12.1
At 31 December 2002 37.3
Net book value
At 31 December 2002 249.9
At 31 December 2001 187.3
12. Fixed asset investments The Group The Company
2002 2001 2002 2001
£m £m £m £m
Shares in group undertakings - - 497.6 406.6
Investment in own shares (note 16) - 0.8 - -
Investment properties 4.6 4.1 - -
4.6 4.9 497.6 406.6
Provision for impairment - - (4.6 ) (4.6 )
4.6 4.9 493.0 402.0
(a) The principal operating subsidiaries whose results and assets affect the results and assets of the group are:
Subsidiary Registered office
Travis Perkins Trading Company Limited Lodge Way House, Harlestone Road, Northampton, NN5 7UG.
(Builders merchants)
Keyline Builders Merchants Limited Southbank House, 1 Strathkelvin Place, Kirkintilloch,
(Builders merchants) Glasgow G66 1HX.
Travis Perkins (Properties) Limited Lodge Way House, Harlestone Road, Northampton, NN5 7UG.
(Property management company)
City Plumbing Supplies Holdings Limited 47 Endless Street, Salisbury, SP1 3UH.
Commercial Ceiling Factors Limited Lodge Way House, Harlestone Road, Northampton, NN5 7UG.
The directors have applied s231 of the Companies Act 1985 and therefore list only significant subsidiary companies.
All subsidiaries of the group are 100 per cent owned. Each company is registered and incorporated in England and Wales, other than Keyline
Builders Merchants Limited, which is registered and incorporated in Scotland, and City Investments Limited, which is registered and
incorporated in Guernsey. TRA V IS PERKINS PLC
56
(b)     Additional information in respect of movements in fixed asset investments:
The Group The Company
Investment Investment Shares
properties in own shares in group
undertakings
£m £m £m
At 1 January 2002 4.1 0.8 402.0
Revaluation 0.1 - -
Acquired during the year - - 91.0
Transferred from current assets 0.4 - -
Disposals - (0.8 ) -
At 31 December 4.6 - 493.0
(c) At 31 December 2002, the directors revalued the investment properties at their open market value.
(d) The comparable net book value for investment properties determined according to the historical cost convention as at 31 December
2002 is £0.9 million (2001: £0.5 million). The amount of accumulated depreciation charged to arrive at these values is negligible.
13. Stocks
Stocks consist of goods for resale.
14. Debtors
The Group The Company
2002 2001 2002 2001
£m £m £m £m
Trade debtors 201.8 171.7 - -
Amounts owed by subsidiaries - - 128.9 76.0
Other debtors 38.8 36.0 3.1 -
Prepayments and accrued income 9.8 8.0 0.1 0.2
250.4 215.7 132.1 76.2
15. Properties held for resale
£m
At 1 January 2002 1.8
Transfer to investment properties (0.4 )
Disposals (0.4 )
At 31 December 2002 1.0
16. Cash at bank and in hand
Included within cash at bank and in hand in 2001 was £0.7 million held by employee related trusts. These funds could only be used to
purchase ordinary shares in the company in order to satisfy obligations under the executive share option schemes and employee sharesave
schemes as set out on pages 36 and 37 or to provide other benefits to employees.
At 31 December 2002, Travis Perkins Quest Trustees Limited held nil (2001: 135,934) shares which had been issued to it to satisfy sharesave
options, but which have not been exercised by some participants of the scheme. The market value of these shares at 31 December 2001
was £1.2 million. The administration costs of this company are borne by Travis Perkins plc. 17. Creditors: amounts falling due within one year
The Group The Company
2002 2001 2002 2001
£m £m £m £m
Bank overdrafts 0.3 0.1 33.2 -
Bank loans 25.0 50.0 25.0 50.0
Obligations under finance leases - 0.2 - -
Unsecured loan notes 14.1 12.8 14.1 12.8
Trade creditors 173.0 156.1 - -
Corporation tax 25.3 20.6 - -
Other taxation and social security 17.4 15.2 - -
Other creditors 15.6 9.6 1.7 1.3
Accruals and deferred income 14.8 9.6 0.6 0.5
Dividends proposed 15.1 13.2 15.1 13.2
300.6 287.4 89.7 77.8
18. Creditors: amounts falling due after more than one year
The Group The Company
2002 2001 2002 2001
£m £m £m £m
Bank loans 150.0 100.0 150.0 100.0
Obligations under finance leases 0.3 - - -
Amounts due to subsidiaries - - 206.7 125.0
150.3 100.0 356.7 225.0
19. Provisions for liabilities and charges
The Group
Deferred Other
tax provisions Total
£m £m £m
At 1 January 2002 as previously stated - 2.6 2.6
Prior period adjustment 6.3 -  6.3
At 1 January 2002 as restated 6.3 2.6 8.9
Subsidiaries acquired 0.6 - 0.6
Charged to profit and loss account 1.0 5.0 6.0
Applied during year - (1.4 ) (1.4 )
At 31 December 2002 7.9 6.2 14.1
Other provisions relate principally to insurance claims where the final settlement date is uncertain. 
The company has no provisions (2001: £nil).
TRA V IS PERKINS PLC
57 TRA V IS PERKINS PLC
58
The provided and unprovided amounts of deferred taxation are: Provided Unprovided
2002 2001 2002 2001
£m £m £m £m
(a) The Group
Capital allowances in excess of depreciation 10.3 8.5 - -
Sale of properties - - 10.0 9.9
Investment revaluation reserve - - 0.4 0.4
Other timing differences (2.4 ) (2.2 ) - -
Capital losses - - (0.4 ) (0.6 )
7.9 6.3 10.0 9.7
(b) The Company
The company has no liability to deferred taxation, either provided or unprovided.
20. Financial instruments
A summary of the group policies and strategies with regard to financial instruments can be found in the finance director’s report on pages
12 to 14. The disclosures below exclude short term debtors, creditors and pension scheme surpluses and deficits.
(a) Interest rate profile of financial assets and liabilities
After taking into account interest rate swaps, all of which are denominated in sterling, the effective interest rate exposures of the group
financial assets and liabilities as at 31 December 2002 were as follows:
Floating Fixed Total
2002 2001 2002 2001 2002 2001
£m £m £m £m £m £m
Borrowings (79.7 ) (13.1 ) (110.0 ) (150.0 ) (189.7 ) (163.1 )
Cash at bank, in hand and deposits 30.0 37.0 - - 30.0 37.0
(49.7 ) 23.9 (110.0 ) (150.0 ) (159.7 ) (126.1 )
Cash at bank, in hand and deposits earn interest at floating rates, based principally on short term inter-bank rates. Floating rate
borrowings bear interest based on short term inter-bank rates, being LIBOR (applicable to periods of 6 months or less).
Some protection from the effective interest movements on floating rate loans is provided by swapping floating rates for fixed rates of
interest of:
Swap 1 - £110 million  to November 2003 5.7 per cent interest
The aggregate market value of the swap at 31 December 2002 was £1.8 million loss (2001: £1.8 million loss). 
Loan notes of £8.4 million issued in 1999 remain outstanding at 31 December 2002. Interest on these loan notes is determined at 
6 monthly intervals on 31 January and 31 July each year when interest is set at 
1
/2 per cent below LIBOR. The interest rate was 
3.575 per cent during January 2003 and has been set at 3.38 per cent between 1 February and 31 July 2003.
Loan notes of £3.7 million issued as part of the consideration for the acquisition of the business of Broombys Limited, remain
outstanding at 31 December 2002. Interest on these loan notes is determined at 6 monthly intervals on 31 January and 31 July each
year when interest is set at base rate subject to a minimum of 6 per cent. The interest rate has been set at 6.0 per cent between 
1 January 2003 and 30 June 2003. TRA V IS PERKINS PLC
59
£2.0 million of loan notes issued during the year in respect of the Joseph Sparks and Son Limited acquisition remain outstanding as of
31 December 2002. Interest is payable on 31 March each year at a rate of 0.5 per cent below base rates.
The weighted average fixed rate is 5.7 per cent (2002: 5.6 per cent) and the weighted average period over which this rate applies is 
11 months (2001: 1 year and 4 months).
(b) Currency exposure
As at 31 December 2002 and 31 December 2001, the group had no currency exposure, including hedging. 
(c) Maturity of financial liabilities
Bank loans and overdrafts Other borrowings Total
2002 2001 2002 2001 2002 2001
£m £m £m £m £m £m
(i) The Group
Borrowings repayable:
Within 1 year 25.3 50.1 14.1 13.0 39.4 63.1
More than 1 year but
not more than 2 years 80.0 25.0 0.3 - 80.3 25.0
More than 2 years but
not more than 5 years 70.0 75.0 - - 70.0 75.0
Total borrowings 175.3 150.1 14.4 13.0 189.7 163.1
Bank loans and overdrafts Other borrowings Total
2002 2001 2002 2001 2002 2001
£m £m £m £m £m £m
(ii) The Company
Borrowings repayable:
Within 1 year 58.2 50.0 14.1 12.8 72.3 62.8
More than 1 year but
not more than 2 years 80.0 25.0 - - 80.0 25.0
More than 2 years but
not more than 5 years 70.0 75.0 - - 70.0 75.0
Total borrowings 208.2 150.0 14.1 12.8 222.3 162.8
There are cross-guarantees on the overdrafts between group companies.
The loan notes of £8.4 million issued in 1999 can be redeemed on 1 January and 1 July each year, the final redemption date being 
1 January 2010. The £3.7 million issued for the acquisition of the business of Broombys Limited are redeemable on 30 June and 
31 December each year until the final redemption date of 30 June 2015. The loan notes of £2 million issued for the acquisition of
Joseph Sparks and Son Limited are redeemable on 30 September each year with the final redemption date of 31 March 2005.
The principal bank loans, which are in the name of Travis Perkins plc, have been guaranteed by Travis Perkins Trading Company Limited,
Travis Perkins (Properties) Limited and Keyline Builders Merchants Limited.
The finance leases are secured on the assets to which they relate. TRA V IS PERKINS PLC
60
20. Financial instruments continued
(d) Borrowing facilities
The group has various undrawn borrowing facilities available at 31 December 2002 in respect of which all conditions had been met:
Overdrafts Committed Total
Borrowings expiring: £m £m £m
Within 1 year 24.7 - 24.7
More than 1 year and not more than 5 years - 50.0 50.0
Total borrowings 24.7 50.0 74.7
The fair values of financial assets and financial liabilities are as follows : 
Book value Fair value
2002 2001 2002 2001
£m £m £m £m
Cash at bank, in hand and deposits 30.0 37.0 30.0 37.0
Overdrafts (0.3 ) (0.1 ) (0.3 ) (0.1 )
Loans (including finance leases) (175.3 ) (150.2 ) (175.3 ) (150.2 )
Interest rate swaps - - (1.8 ) (1.8 )
Loan notes (14.1 ) (12.8 ) (14.1 ) (12.8 )
(159.7 ) (126.1 ) (161.5 ) (127.9 )
Market value has been used to determine the fair value of the interest rate swaps.
The fair value of all other items has been calculated by discounting expected cash flows at prevailing rates at 31 December. There are
no material differences between book and fair values on this basis.
21. Called up share capital
Authorised Allotted
Ordinary shares of 10p No. £m No. £m
At 1 January 2002 135,000,000 13.5 112,107,891 11.2
Allotted under share option schemes - - 524,127 0.1
At 31 December 2002 135,000,000 13.5 112,632,018 11.3
The net contribution received for the issue of shares during the year was £2.8 million.
Details of the share option schemes are given in the Remuneration Report on pages 32, 36 and 37. TRA V IS PERKINS PLC
61
22. Reserves
Non-distributable
(a) The Group revaluation reserve Share
Investment Trading premium Retained Total 
property property account profits reserves
£m £m £m £m £m
At 1 January 2002 (as previously stated) 3.7 27.8 61.0 290.4 382.9
Prior period adjustment in respect of FRS 19 - - - (7.3 ) (7.3 )
At 1 January 2002 as restated 3.7 27.8 61.0 283.1 375.6
Retained profit for the year - - - 69.9 69.9
Actuarial loss recognised - - - (64.2 ) (64.2 )
Difference between depreciation of assets
on a historical basis and on a revaluation basis - (0.4 ) - 0.4 -
Revaluation of investment properties 0.1 - - - 0.1
Issue of shares - - 4.7 (2.0 ) 2.7
At 31 December 2002 3.8 27.4 65.7 287.2 384.1
2002 2001 
Restated
£m £m
Profit and loss account reserve excluding pension deficit 373.0 305.8
Pension deficit (85.8 ) (22.7 )
Profit and loss account reserve including pension deficit 287.2 283.1
The prior period adjustment arose as a result of implementing FRS 19 – Deferred Tax for the first time. The principal effects have been to:
- decrease net assets at 1 January 2001 by £5.6 million;
- decrease net assets at 31 December 2001 by £7.3 million;
- decrease net assets at 31 December 2002 by £8.3 million;
- decrease profit after tax for 2001 by £1.7 million;
- decrease profit after tax for 2002 by £1.0 million.
The cumulative total of goodwill written off directly to reserves for acquisitions from 23 December 1989 to 31 December 1998 is
£40.1million. The aggregate information for the accounting periods prior to this period is not available.
(b) The Company Share premium Retained Total 
account profits reserves
£m £m £m
At 1 January 2002 59.9 119.1 179.0
Retained profit for the year - 13.9 13.9
Issue of shares 4.7 - 4.7
At 31 December 2002 64.6 133.0 197.6 TRA V IS PERKINS PLC
62
23. Profit of parent company
As permitted by s230 of the Companies Act 1985, the profit and loss account of the parent company is not presented as part of these
financial statements.
2002 2001
Group profit dealt with in the parent company accounts: £m £m
Trading loss (7.3 ) (7.1 )
Group dividends receivable 43.1 50.8
35.8 43.7
Dividends payable to shareholders (21.9 ) (19.3 )
Retained profit for the year 13.9 24.4
24. Operating lease commitments
At 31 December 2002, the group was committed to making the following payments during the next year in respect of operating leases:
Land and buildings Other
2002 2001 2002 2001
Leases which expire: £m £m £m £m
Within 1 year 0.4 0.1 0.4 0.6
More than 1 year but not more than 2 years 0.2 0.5 0.4 1.0
More than 2 years but not more than 5 years - - 0.4 0.5
After 5 years 12.8 11.9 - -
13.4 12.5 1.2 2.1
25. Capital commitments The Group The Company
2002 2001 2002 2001
£m £m £m £m
Contracted for but not provided in the accounts 7.9 2.6 - -
26. Related party transactions
Certain directors of the company have made purchases from group companies during the year. These transactions were on normal arms
length terms at prices that were available to any member of staff. Total purchases did not exceed £1,500 for any individual director other
than Mr. F. J. McKay (£4,095) and Mr. C. M. Fisher (£4,230) during the year ended 31 December 2002. The total balance outstanding at
31 December 2002 did not exceed £1,500 for any director, except for Mr. F . J. McKay (£1,895). The board of directors, excluding the relevant
director in each case, are of the opinion that none of these transactions are material to either the company or the specific director in each
case. In addition, interest of £47,326 was payable in respect of loan notes issued when Sharpe & Fisher plc was acquired, in which 
Mr. C. M. Fisher has an interest. TRA V IS PERKINS PLC
63
27. Reconciliation of operating profit to net cash inflow from 
operating activities
2002 2001
£m £m
Operating profit after amortisation of goodwill 146.1 118.6
Depreciation charges 21.9 19.0
Amortisation of goodwill 12.1 10.5
Loss/(profit) on sale of fixed assets 0.3 (0.1 )
(Increase)/decrease in stocks (0.9 ) 10.8
Decrease/(increase) in debtors 4.2 (0.6 )
Decrease/(increase) in creditors (3.9 ) 8.7
Net cash inflow from operating activities 179.8 166.9
28. Reconciliation of net cash flow to movement in net debt
2002 2001
£m £m
(Decrease)/increase in cash in year (37.2 ) 36.9
Cash (inflow from)/outflow to repay debt (24.3 ) 28.4
Cash outflow to increase liquid resources 30.0 -
Change in net cash resulting from cash flows (31.5 ) 65.3
Non-cash changes (2.1 ) -
Movement in net debt in year (33.6 ) 65.3
Net debt at 1 January (126.1 ) (191.4 )
Net debt at 31 December (159.7 ) (126.1 )
29. Analysis of movements in cash, short term deposits and debt
At 1 At 31 Other At 31
January Cash December Cash non-cash December
2001 flow 2001 flow changes 2002
£m £m £m £m £m £m
Cash on call 9.8 27.2 37.0 (37.0 ) - -
Bank overdraft (9.8 ) 9.7 (0.1 ) (0.2 ) - (0.3 )
- 36.9 36.9 (37.2 ) - (0.3 )
Short term deposits - - - 30.0 - 30.0
Cash in balance sheet - 36.9 36.9 (7.2 ) - 29.7
Finance leases (0.3 ) 0.1 (0.2 ) - (0.1 ) (0.3 )
Bank loan (175.0 ) 25.0 (150.0 ) (25.0 ) - (175.0 )
Unsecured loan notes (16.1 ) 3.3 (12.8 ) 0.7 (2.0 ) (14.1 )
Net (debt) / cash (191.4 ) 65.3 (126.1 ) (31.5 ) (2.1 ) (159.7 )
Major non-cash changes in 2002 were in respect of loan notes issued, details of which can be found in note 30 and immaterial finance
lease obligations owed by acquired businesses. TRA V IS PERKINS PLC
64
30. Purchase of business undertakings
During the year the group acquired 12 limited companies and the assets of 14 other businesses, details of which on an individual basis are
not material to the financial statements.
All the acquisitions were accounted for using the acquisition method of accounting.
On acquisition, the value of the assets of each business have been reviewed and where appropriate, been revalued to their fair values based
on either an independent valuation or a value based on group accounting policies. These fair value and accounting policy alignments that
are included below are based on the best information available currently and as such are provisional for all businesses acquired during the
year ended 31 December 2002. Further adjustments may be necessary during 2003 when additional information is available.
2002 2001
Book Fair Fair Fair
value value value value
acquired adjustments acquired acquired
Net assets acquired £m £m £m £m
Tangible fixed assets 20.1 (0.1 ) 20.0 3.6
Stock 18.5 - 18.5 2.9
Debtors 38.9 - 38.9 3.2
Cash 1.4 - 1.4 0.2
Creditors (36.3 ) - (36.3 ) (0.7 )
Taxation (1.7 ) - (1.7 ) -
Bank overdrafts and loans (9.6 ) - (9.6 ) (0.1 )
Deferred tax (0.4 ) (0.2 ) (0.6 ) -
30.9 (0.3 ) 30.6 9.1
Goodwill 74.7 6.0
105.3 15.1
Satisfied by:
Cash 103.3 15.1
Loan notes 2.0 -
105.3 15.1
Fair value Goodwill Total Loan Cash 
acquired consideration notes paid
£m £m £m £m £m
City Plumbing 7.0 31.6 38.6 - 38.6
CCF 10.9 27.7 38.6 - 38.6
Other 12.7 15.4 28.1 (2.0) 26.1
30.6 74.7 105.3 (2.0) 103.3
With the exception of Commercial Ceiling Factors Limited (“CCF”) and City Plumbing Supplies Holdings Limited (“City”) which remain
trading, on the day following completion, the trade and assets of each acquired company were transferred into Travis Perkins Trading
Company Limited. The acquired subsidiary companies are now dormant. TRA V IS PERKINS PLC
65
The individual results and cash flow effects of these businesses are not sufficiently material to warrant separate disclosure. With the
exception of CCF and City the acquired branches have now been fully integrated into Travis Perkins Trading Company Limited’s accounting
systems. As such, the directors are unable to calculate meaningful cash flow effects of each of the other acquired business’ for the period
of Travis Perkins’ ownership without incurring undue expense and delay. The cashflow effects of CCF and City are not considered material.
For the year ended 31 August 2002 CCF’s profit after tax was £3.1 million. For the period from 1 September 2002 to the date of acquisition
on 2 October 2002, CCF’s profit after tax was £0.2 million.
For the year ended 31 December 2001, City’s profit after tax was £2.1 million. For the period from 1 January 2002 to the date of acquisition
on 1 July 2002 City’s profit after tax was £1.7 million.
31. Free cash flow
2002 2001
Like-for-like free cash flow as referred to in the finance director’s report, is derived as follows: £m £m
Net debt at 1 January (126.1 ) (191.4 )
Net debt at 31 December (159.7 ) (126.1 )
Movement in net debt in year (33.6 ) 65.3
Net cash outflow for capital expenditure 31.6 24.2
Net cash outflow for acquisitions 111.5 16.1
Loan notes issued for acquisitions 2.0 -
Free cash flow included in the financial statements 111.5 105.6
Adjustment in respect of creditors paid in advance
of their normal due payment date 16.6 -
Like-for-like free cash flow 128.1 105.6
32. Return on equity
2002 2001
Restated
£m £m £m £m
Return on equity, as referred to in the finance director’s report,
is derived as follows:
Profit on ordinary activities before taxation and goodwill amortisation 149.7 121.0
Closing net assets 395.4 386.8
Pension deficit 85.8 22.7
Closing goodwill written off 77.4 65.3
558.6 474.8
Opening net assets 386.8 358.7
Pension deficit/(surplus) 22.7 (2.3 )
Opening goodwill written off 65.3 54.8
474.8 411.2
Average net assets 516.7 443.0
Return on equity 29.0% 27.3% TRA V IS PERKINS PLC
66
Five year record of group results
For the years ended 31 December 2002
The profit and loss accounts for 2000 to 2002 reflect the effect of implementing FRS 17 during 2001. The information for prior periods has
not been restated. All years have been restated to reflect the effect of FRS 19.
Profit and loss account 2002 2001 2000 1999 1998
£m £m £m £m £m
Turnover 1,417.5 1,279.3 1,181.2 874.3 623.1
Operating profit before reorganisation costs
and amortisation of goodwill 158.2 129.1 113.2 90.4 61.8
Reorganisation costs - - (5.0 ) (6.6 ) (3.2 )
Amortisation of goodwill (12.1 ) (10.5 ) (10.0 ) (4.2 ) (0.5 )
Operating profit after reorganisation costs
and amortisation of goodwill 146.1 118.6 98.2 79.6 58.1
Profit on sale of properties 1.2 1.4 0.3 0.6 0.9
Net interest (payable) / receivable (8.9 ) (10.7 ) (12.7 ) (5.0 ) 1.5
Other finance (expenditure)/ income (0.8 ) 1.2 1.6 - -
Profit on ordinary activities before taxation 137.6 110.5 87.4 75.2 60.5
Tax on profit on ordinary activities (45.8 ) (35.5 ) (27.8 ) (22.8 ) (18.8 )
Profit on ordinary activities after taxation 91.8 75.0 59.6 52.4 41.7
Return on equity
1
29.0% 27.3% 26.5% 27.6% 25.9%
1
Return on equity is calculated as: profit on ordinary activities before amortisation of goodwill and before taxation, divided by the weighted
average of net total assets excluding the pension scheme deficit/surplus together with cumulative goodwill previously written off. This is
shown in note 32 to the financial statements.
Cash flow statement 2002 2001 2000 1999 1998
£m £m £m £m £m
Net cash inflow from operating activities 179.8 166.9 104.7 106.6 66.4
Net cash (outflow) / inflow for returns on
investments and servicing of finance (8.3 ) (13.7 ) (10.2 ) (3.9 ) 1.5
UK corporation tax paid (42.7 ) (34.7 ) (26.3 ) (24.6 ) (14.7 )
Net cash outflow for capital
expenditure and financial investment (31.6 ) (24.2 ) (32.7 ) (15.6 ) (10.7 )
Net cash outflow for acquisitions (111.5 ) (16.1 ) (23.8 ) (251.8 ) (29.4 )
Equity dividends paid (20.0 ) (17.8 ) (15.8 ) (13.1 ) (12.1 )
Issue of ordinary share capital 2.8 4.9 1.1 1.5 0.5
Increase in finance leases (0.1 ) - (0.3 ) - (0.6 )
Increase in debt due to issue of loan notes (2.0 ) - (6.5 ) (11.8 ) -
Decrease/(increase) in cash balances (33.6 ) 65.3 (9.8 ) (212.7 ) 0.9
Net (debt) / cash at 1 January (126.1 ) (191.4 ) (181.6 ) 31.1 30.2
Net (debt) / cash at 31 December (159.7 ) (126.1 ) (191.4 ) (181.6 ) 31.1 TRA V IS PERKINS PLC
67
The profit and loss accounts for 2000 to 2002 and the balance sheets for 2000 to 2002 reflect the effect of implementing FRS 17 during
2001. The information for prior periods has not been restated. All years have been restated for the effects of implementing FRS 19.
2002 2001 2000 1999 1998
£m £m £m £m £m
Number of branches at 31 December 610 502 473 454 289
Average number of employees 8,497 7,892 7,576 5,830 4,424
Earnings per ordinary share (pence)
Basic 81.9p 67.3p 53.8p 49.8p 39.8p
Adjusted 91.6p 75.5p 65.7p 57.6p 41.6p
Dividend per ordinary share (pence) 19.5p 17.2p 15.3p 13.7p 12.1p
Balance sheet 2002 2001 2000 1999 1998
£m £m £m £m £m
Tangible fixed assets 258.2 226.4 215.8 194.2 96.3
Intangible fixed assets – goodwill 249.9 187.3 191.7 180.6 12.9
Investments 4.6 4.9 5.2 4.0 3.4
512.7 418.6 412.7 378.8 112.6
Stocks 152.1 132.7 140.6 127.8 82.9
Debtors 250.4 215.7 211.9 205.5 111.3
Properties held for resale 1.0 1.8 1.5 0.3 0.6
Cash at bank, in hand and deposits 30.0 37.0 9.8 17.0 31.7
Creditors: amounts falling due within one year (300.6 ) (287.4 ) (263.3 ) (227.3 ) (122.5 )
Net current assets 132.9 99.8 100.5 123.3 104.0
Total assets less current liabilities 645.6 518.4 513.2 502.1 216.6
Creditors: amounts due after more than one year (150.3 ) (100.0 ) (150.0 ) (185.1 ) (0.2 )
Provisions for liabilities and charges (14.1 ) (8.9 ) (5.7 ) (7.7 ) (6.5 )
Pension (deficit)/asset (85.8 ) (22.7 ) 2.3 - -
395.4 386.8 359.8 309.3 209.9
Capital employed
Called up share capital 11.3 11.2 11.1 11.1 10.5
Reserves 384.1 375.6 347.6 297.1 199.4
Total equity shareholders’ funds 395.4 386.8 358.7 308.2 209.9
Minority interests - non equity - -1.1 1.1 -
395.4 386.8 359.8 309.3 209.9 TRA V IS PERKINS PLC
68
Notice of annual general meeting
Notice is hereby given that the thirty ninth Annual General Meeting of Travis Perkins plc will be held at Lord’s Conference and Banqueting
Centre, St. John’s Wood Road, London NW8 8QN on Friday 2 May 2003 at 11.45 a.m. for the following purposes:
Ordinary business
1. To receive and adopt the financial statements for the year ended 31 December 2002 together with the directors’ report, the directors’
remuneration report, the auditors’ report on those accounts and on the auditable part of the directors’ remuneration report.
2. To declare a final dividend.
3. To re-elect, pursuant to Article 75 of the Company’s Articles of Association, Mr. E. C. Adams who is retiring by rotation. Biographical
details of Mr. Adams appear on page 25.
4. To re-elect, pursuant to Article 75 of the Company’s Articles of Association, Mr. M. B. Dearden who is retiring by rotation. Biographical
details of Mr. Dearden appear on page 25.
5. To re-elect, pursuant to Article 75 of the Company’s Articles of Association, Mr. P. J. Maydon who is retiring by rotation. Biographical
details of Mr. Maydon appear on page 25.
6. To re-appoint Deloitte & Touche, Chartered Accountants, as auditors of the Company to hold office until the conclusion of the next
Annual General Meeting and to authorise the directors to determine their remuneration.
Special business
To consider and, if thought fit, to pass resolutions 7 and 8 as Ordinary Resolutions and the remainder as Special Resolutions.
7. That the directors’ remuneration report for the financial year ended 31 December 2002 set out on pages 31 to 37 be approved.
8. That the authority conferred on the directors by Article 4(B) of the Company’s Articles of Association be renewed for the period expiring
fifteen months after the date of the passing of this resolution or, if earlier, at the conclusion of the next Annual General Meeting and
for that period the “section 80 amount” is £2,232,216.
9. That, subject to the passing of Resolution 8, the power conferred on the directors by Article 4(C) of the Company’s Articles of
Association be renewed for the period expiring fifteen months after the date of the passing of this resolution or, if earlier, at the
conclusion of the next Annual General Meeting and for that period the “section 89 amount” is £563,389.
10.That the Company be and is hereby generally and unconditionally authorised to make one or more market purchases (within the
meaning of section 163(3) of the Companies Act 1985) of ordinary shares of 10 pence each in the capital of the Company (“ordinary
shares”), provided that:
(a) the maximum aggregate number of ordinary shares authorised to be purchased is 11,267,784 (representing 10 per cent of the
issued ordinary share capital of the Company as at 7 March 2003);
(b) the minimum price which may be paid for an ordinary share is 10 pence, exclusive of expenses; TRA V IS PERKINS PLC
69
(c) the maximum price which may be paid for an ordinary share is an amount equal to 105 per cent of the average of the middle
market quotations for an ordinary share as derived from The London Stock Exchange Daily Official List for each of the five business
days immediately preceding the day on which that ordinary share is purchased, exclusive of expenses;
(d) this authority expires at the conclusion of the next Annual General Meeting of the Company or the date fifteen months from the
date of passing of this resolution, whichever is the earlier; and
(e) the Company may make a contract to purchase ordinary shares under this authority before the expiry of such authority, which will
or may be executed wholly or partly after the expiry of such authority, and may make a purchase of ordinary shares pursuant to
any such contract.
By order of the board,
A. S. Pike   Secretary
Lodge Way House, Harlestone Road, Northampton, NN5 7UG
Registered in England No. 824821
7  March 2003  TRA V IS PERKINS PLC
70
Notes to the notice of annual general meeting
1. A Member entitled to attend and vote at the Annual General Meeting may appoint one or more proxies to attend and, on a poll, vote
instead of him. A proxy need not be a Member. The appointment of a proxy does not preclude a Member from attending the Meeting
and voting in person, in which case any votes of the proxy will be superseded.
2. To be effective, the instrument appointing a proxy and (in the case of an instrument signed by an agent of a Member who is not a
corporation) the authority under which such instrument is signed or an office copy or duly signed copy thereof must be deposited at
the office of the Company’s Registrar, Capita Registrars plc, The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU, not less
than 48 hours before the time appointed for the above meeting or any adjournment thereof.
3. Pursuant to Regulation 41 of the Uncertified Securities Regulations 2001, the Company specifies that only those shareholders registered
in the Register of Members of the Company at the close of business on Wednesday 30 April 2003 shall be entitled to attend or vote
at the Meeting in respect of the number of shares registered in their names at that time. Changes to entries on the Register of Members
after that time shall be disregarded in determining the rights of any person to attend or vote at the Meeting.
4. Copies of contracts of service of directors with the Company, or with any of its subsidiary companies, will be available for inspection at
the Registered Office of the Company during usual business hours on any weekday (public holidays excluded) from the date of this
Notice to the date of the Meeting, at Lord’s Conference and Banqueting Centre from 11.15 am on the day of the Meeting until the
conclusion of the Meeting.
5. The register of directors’ shareholdings and transactions will be available for reference at Lord’s Conference and Banqueting Centre from
11.15 am on the day of the Meeting until the conclusion of the Meeting. TRA V IS PERKINS PLC
71
Other shareholder information
Financial diary
Annual General Meeting 2 May 2003
Payment of final dividend 16 May 2003
Announcement of interim results 8 September 2003
Payment of interim dividend 1 November 2003
Announcement of 2003 annual results March 2004
Low cost postal dealing service
HSBC Stockbrokers offer a low cost dealing service for our shareholders, dedicated to the trading of shares in Travis Perkins plc. Further
details may be obtained from the company secretary at the company’s Registered Office (e-mail: cosec@travisperkins.co.uk).
Internet
There are sites on the internet that carry information about the principal brands of the company at the following addresses:
www.travisperkins.co.uk
www.keyline.co.uk
www.tpph.com
www.toolmart.co.uk 
www.cityplumbing.co.uk
www.ccfltd.co.uk 
www.gardendimensions.co.uk 
www.buildthedream.co.uk
These sites include information about all branch locations and allow access to prices of the product range available. Customers are also able
to construct their own price quotation that includes any special price arrangements that have been negotiated with the company. 
Registrar’s on-line service
By logging on to www.capitaregistrars.com and clicking “Shareholder help”, shareholders can now view and amend various details on 
their account. TRA V IS PERKINS PLC
72
Shareholder notes Financial highlights 1
Chairman’s statement 3
Chief executive’s review 6
Finance director’s report 11
Corporate social responsibility statement 16
Environmental report 18
Health & safety report 22
Directors and professional advisers 24
Corporate governance 28
Remuneration report 31
Directors’ report 38
Statement of directors’ responsibilities 40
Auditors’ report 40
Consolidated profit and loss account 42
Balance sheets 43
Statement of total 
recognised gains and losses 44
Analysis of actuarial gains and losses 44
Reconciliation of movements 
in equity shareholders’ funds 44
Consolidated cash flow statement 45
Accounting policies 46
Notes to the accounts 49
Five year record of group results 66
Notice of Annual General Meeting 68
Notes to notice of Annual General Meeting 70
Other shareholder information 71
Contents
Registered office: Lodge Way House, Harlestone Road, Northampton, NN5 7UG
TRA V IS PERKINS PLC
Travis Perkins'
group branches
at 31 December
2002
TRAVIS PERKINS  TP PLUMBING & HEATING  CITY PLUMBING  KEYLINE  CCF  DESIGN · RWH DESIGN CONSULTANTS   PHOTOGRAPHY · CALVIN HEWITT   PRINT · FOLIUM Travis Perkins, Lodge Way House, Harlestone Road, Northampton, NN5 7UG
TRA VIS PERKINS PLC
ANNUAL REPOR T & ACCOUNTS
2002
TRAVIS PERKINS PLC ANNUAL REPORT AND ACCOUNTS 2002
Financial highlights 1
Chairman’s statement 3
Chief executive’s review 6
Finance director’s report 11
Corporate social responsibility statement 16
Environmental report 18
Health & safety report 22
Directors and professional advisers 24
Corporate governance 28
Remuneration report 31
Directors’ report 38
Statement of directors’ responsibilities 40
Auditors’ report 40
Consolidated profit and loss account 42
Balance sheets 43
Statement of total 
recognised gains and losses 44
Analysis of actuarial gains and losses 44
Reconciliation of movements 
in equity shareholders’ funds 44
Consolidated cash flow statement 45
Accounting policies 46
Notes to the accounts 49
Five year record of group results 66
Notice of Annual General Meeting 68
Notes to notice of Annual General Meeting 70
Other shareholder information 71
Contents
Registered office: Lodge Way House, Harlestone Road, Northampton, NN5 7UG
TRA VIS PERKINS PLC