2038604  01042011 proof 3 2038604  01042011 proof 3
travis perkins plc
lodge way house · harlestone road · northampton nn5 7 ug 
telephone 01604 752 424
tra vi s per ki ns p l c · 2010 annua l repor t and a c c ount s 2010
2010 annual report  acc ounts
a leader in builders merchanting and home impr ovement retailing travis perkins plc 2038604  01042011 proof 3 2038604  01042011 proof 3
this document is important and requires your immediate attention 
if you are in any doubt as to what action you should take you are 
recommended to seek your own financial advice from your stockbroker 
or other independent adviser authorised under the financial services 
and markets act 2000 if you have sold or transferred all of your shares 
in travis perkins plc please forward this document together with the 
accompanying documents as soon as possible either to the purchaser or 
transferee or to the person who arranged the sale or transfer so they can pass 
these documents to the person who now holds the shares
printed on 
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designed by rwh design consultants 
photography by charles ward
bss photography by barry willis
printed by jones and palmer
robert steward yard sales assistant
front cover mark bonhamyard supervisor
scott richardson sales assistant 1
 
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contents
   
   
   
   
   
overview
financial highlights 2
operating highlights 3
highlights of 2010 4
mission vision and values 6
who we are 7
reports
chairman’s statement 12
chief executive’s review of the year 14
chief operating officer’s review of the year 26
finance director’s review of the year 32
environmental report 37
health  safety report 43
governance
directors 46
committees and professional advisers 48
corporate responsibility statement 48
statement of principal risks and uncertainties 49
corporate governance 55
audit committee report 58
directors’ remuneration report 61
nominations committee report 72
directors’ report 73
statement of directors’ responsibilities 77
independent auditors’ report 78
financial statements
income statements 80
statement of comprehensive income 81
balance sheets 82
consolidated statement of changes in equity 84
statement of changes in equity 85
cash flow statements 86
notes to the financial statements 87
five year record 126
shareholder information
notice of annual general meeting 129
notes to notice of annual general meeting 131
directions to annual general meeting 133
other shareholder information 134 2
 
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financial 
highlights
●
 group revenue up 8 at £3153m up 5 on a likeforlike basis
●
 adjusted profit before tax up 20 to £217m
●
  adjusted eps up 5 before consolidating bss up 3 to 772p  
on a reported basis
●
  adjusted group operating margin before bss impact increased  
by 01 to 78
●
  net debt reduced by £205m before the effect of the bss 
acquisition and the oneoff pension contribution
●
  year end net debt was £774m adjusted net debt to ebitda was 
192x note 38
●
  travis perkins pension fund into surplus of £32m
●
  final dividend of 10p per share making a total dividend of  
15p per share
●
  bss acquisition completed on 14 december 2010 for £799m 
enterprise value 3
 
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operating 
highlights
●
  all 11 group businesses performed better than the market with 
outperformance of around 4 in merchanting and around  
6 in retail
●
  focus on operating and financial performance maintained 
against background of completion of the major acquisition 
project of bss
●
  strong likeforlike performance in merchanting with  
increase of 73
●
  retail likeforlike sales increase of 02 4
 
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adjusted 
profit
before 
taxation  
£m
adjusted  
basic 
earnings  
per share 
pence
restated for impact of rights issue
revenue 
£m
highlights 
of 2010
0
3000
4000
2000
1000
2006 2007 2008 2009 2010
28488
31867
31786
29309
31528
0
300
200
100
2006 2007 2008 2009 2010
2203
2614
2025
1800
2167
100
50
0
2006 2007 2008 2009 2010
1004
1181
969
752
772
1004
1181
969
752
772 5
 
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    2010  2009
    £m  £m
revenue 31528 76 29309
adjusted
operating profit note 5a 2390 64 2246
profit before taxation note 5b 2167 204 1800
profit after taxation note 5b 1569 172 1339
basic earnings per ordinary share pence note 12  772 27 752
 
statutory   
operating profit  2198 144 2573
profit before taxation  1968 75 2127
profit after taxation  1413 102 1574
basic earnings per ordinary share pence 696 213 884
 
total dividend declared   
per ordinary share pence note 12 150p  
highlights 
of 2010
 throughout these financial statements the term ‘adjusted’ has been used to signify that the effect of exceptional items amortisation of intangible assets and the associated tax impacts 
have been excluded from the disclosure being made full details of the exceptional items for both 2010 and 2009 are given in notes 5 8 10 and 11 6
 
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our group 
mission vision 
and values
our group mission
‘continue to deliver better returns by putting 
in place and growing the best businesses with 
outstanding people and operations providing 
comprehensive building material solutions to 
everyone creating maintaining repairing or 
improving the built environment… helping to 
build britain’
our group vision
to ensure that anyone in britain who wants to 
access any kind of building materials through 
any form of supply channel will have a travis 
perkins group operation as their first or first 
alternative choice
know our customers – we understand their 
needs beat their expectations treat them 
with respect and know our major customers 
personally
talk and listen – we say what we mean clearly 
and honestly we listen carefully we respond 
objectively we explain our decisions
are with you not against you – we seek 
mutual benefits with all stakeholders we think 
about the impact of our actions we search for 
similarities
know how to do our jobs – not just today but 
for the next job we equip ourselves with the 
skills needed to perform and be confident we 
can perform
like to deliver – we enjoy being the best we 
know exactly what each of us is expected to 
achieve we focus on getting results simply
work together – we actively work with each 
other when something goes wrong the first 
thing we will do is fix the problem not look for 
someone to blame
always try to get better – we constructively 
challenge how we work we look for fresh ideas 
that are different we only have rules where they 
are necessary because we use our common 
sense
are proud to be here – this is a great 
company everyone working with us is welcome 
we make work enjoyable for everyone
our group values
at travis perkins we 7
 
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who we are
the present day company was formed in 1988 out of a merger between travis and arnold plc a 
company with strong midlands and northern based business and sandell perkins plc a company with 
an equivalent strength in the south of england
the origins of sandell perkins can be traced back over 200 years to 1797 when a carpentry 
company was first established in london travis and arnold was initially formed as a partnership in 
1899 during the early to mid 20th century both businesses expanded before eventually becoming 
listed public companies travis and arnold was the first to the market in 1964 followed 22 years later 
by sandell perkins
andrew pike
company 
secretary  
and lawyer
carol kavanagh
group human  
resources 
director
martin meech
group property 
director
robin proctor
supply chain 
director
norman bell
category 
management 
director 
travis perkins plc
travis perkins a major plc is a main supplier to the building 
and construction market one of the largest industries in  
the uk 8
 
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the core businesses of travis and arnold plc and sandell perkins plc formed following the merger in 
1988 what is now the general merchanting business within the merchanting division it trades nation
ally through the travis perkins brand and comprises four individual businesses 
joe mescall who has been with the group since 1974 leads the business in his role as divisional 
chairman the managing directors of the four regional businesses are ian church travis perkins 
midlands phil gransden travis perkins south east andrew popple travis perkins northern and 
mark nottingham travis perkins south west the customers of the four general merchanting regional 
businesses are primarily professional tradesmen ranging from sole traders to national housebuilders 
whose key requirements are product range and availability competitive pricing and customer service
the strategy of the general merchanting business aims to increase market share through imple
mentation of our best practice programme ongoing branch network expansion to enter new market 
segments and to exploit multi channel opportunities the best practice programme is designed to 
enhance our overall service to trade customers and covers all of their key requirements even though 
all four general merchanting businesses are already operating to high standards in these areas they 
have stretching targets in place to deliver further improvements
network expansion will be concentrated on identifying prime locations through brownfield openings 
and small acquisitions store projects and framework agreements will continue to be expanded with 
local authorities and housing associations 
the specialist merchanting business of the merchanting division consists of four separate busi
nesses trading under the following brands keyline city plumbing supplies ccf and benchmarx it is 
led by the divisional chairman arthur davidson he has worked in merchanting for over thirty years 
having joined keyline prior to its acquisition by the travis perkins group
merchanting 
division
joe mescall
divisional 
chairman
ian church
md midlands
phil gransden
md south east
andrew popple
md northern
mark 
nottingham
md south west
the merchanting division of travis perkins plc supplies building 
materials to generalist and specialist professional tradesman 
throughout great britain 9
 
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arthur davidson 
divisional 
chairman
andrew 
harrison 
md keyline 
john frost
md city 
plumbing
kieran griffin 
md ccf
chris larkin
md benchmarx
andrew harrison the managing director of keyline has been with the group since 1989 keyline 
is a specialist merchant supplying heavy building materials and civils and drainage solutions to the 
construction industry throughout the uk keyline is known for its knowledgeable staff and excellent 
delivery service 
city plumbing supplies is a major nationwide plumbing and heating merchant serving both the 
contract market and the general plumbing and heating market the company offers high quality prod
ucts and expert service to the trade the managing director of city plumbing supplies is john frost 
who joined the travis perkins group in 1983 in 2010 led by ian tillotson city heating spares – the 
spare parts division of city plumbing supplies – was formed 
ccf is a leading supplier of interior building products to the construction industry it operates 
throughout the uk offering a onestopshop to its customers from its nationwide branch network 
ccf’s managing director is kieran griffin who joined the group in 1995 and progressed via its 
management training scheme branch management and regional management roles to the position 
of managing director 
in 2006 benchmarx became the first group brand to be created as a completely new business 
within a market adjacent to the markets already served by the group based mainly in the south east 
the business is a leading supplier of kitchen and joinery products to the trade through its competi
tive pricing quality products and knowledgeable staff benchmarx is led by chris larkin formerly a 
regional director within travis perkins south east who became managing director in july 2009  
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retail 
division
wickes stores are designed to appeal to tradesmen who undertake general repairs maintenance and 
improvement projects for households and small businesses and to serious diy customers who carry 
out more complete diy projects these customers are more demanding in terms of service quality 
and price
the company meets these expectations by offering a focussed range of high quality primarily own 
brand competitively priced home improvement products such as timber building materials tools and 
decorative materials in addition wickes stores offer a range of kitchens and bathrooms which are 
sold through instore showrooms
wickes which opened its first store in the uk in 1972 at whitefield in manchester was acquired by 
travis perkins in 2005 and the company now operates from 201 stores nationwide 
the managing director of wickes is jeremy bird who joined wickes eighteen years ago and has 
fulfilled various roles including that of commercial director
in 2007 travis perkins acquired its seventh brand tile giant whilst in 2008 this business acquired 
tile magic a 17 store chain and tile it all a 16 store chain in 2009 travis perkins acquired tile hq an 
internet based retailer of ceramic and stone tiles the brand is now trading from a total of 101 stores
under the leadership of mo iqbal the managing director of tile giant up to the end of 2010 and 
his successor andy morrison the brand offers a strong pipeline for further expansion
toolstation
in 2008 the group invested in a 30 share of a direct retailer of lightside products this multichannel 
business has a strong internet and catalogue based business and a rapidly expanding store network 
which has extended to 84 stores throughout great britain by the end of 2010 
jeremy bird
divisional 
chairman
and md wickes
mo iqbal
md tile giant
the retail division comprises two businesses wickes a 
national chain of diy retail outlets and tile giant a ceramic tile 
merchant acquired in 2007 
10 11
 
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bss  
division
the bss group plc is a leading distributor to specialist trades and its principal activities are the distribu
tion and sale of heating ventilation and plumbing products tools and industrial supplies to amongst 
others industrial contractors domestic plumbers independent merchants and industrial end users 
through a network of 446 branches 443 branches are located in the united kingdom and 3 in the 
republic of ireland 
the group’s business comprises three divisions domestic industrial and specialist its principal 
brands are pts bss and f  p wholesale 
pts operates from 317 branches and supplies a wide range of customers from national contractors to 
sole trading plumbers and heating engineers merchant heating plumbing and sanitary ware is supplied 
through the 11 branches of f  p wholesale the industrial commercial and process industry construc
tion and warehouse markets are serviced by the 61 branches of bss industrial in the uk and ireland
the specialist division of bss comprises buck and hickman one of the uk’s leading distributors of 
tools maintenance and health and safety products and birchwood price tools a wholesaler of power  
tools and accessories hand tools safety wear and general consumables
forward looking statements
the review of the businesses contained in the annual report and accounts contains forward looking statements 
with respect to the financial condition results operations and business of the travis perkins plc group these 
statements and forecasts include risk and uncertainty because they relate to events and depend on circum
stances that occur in the future there are a number of factors that could cause actual results or developments 
to differ materially from those expressed or implied by the forward statements 
travis perkins purchased the entire share capital of  
the bss group plc on 14 december 2010 12
 
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chairman’s 
statement
for the year ended 31 december 2010
robert walker 
chairman
introduction
i am pleased to present my first 
statement to shareholders as chairman of 
travis perkins and to report on a year of 
substantial progress across the group in 
spite of the deepest recession that most 
of us can remember increased revenues 
together with a continuing focus on cash 
generation cost reduction and margin 
protection have produced an excellent 
set of results in the current economic 
circumstances
a further highlight was the acquisition 
of the bss group plc ‘bss’ at the end 
of 2010 as a result the group now has 
a better balanced set of businesses 
focussed on three segments merchanting 
retail and bss all these businesses 
were characterised by increasing market 
share focussed strategies and selfhelp 
initiatives 13
 
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chairman’s s tatement
results
the group’s reported revenue in 2010 rose by almost 8 to over £31bn 
and our adjusted pretax profits climbed by 20 to almost £217m 
adjusted earnings per share before the consolidation of the last two 
weeks of trading at bss through the traditional christmas shutdown 
increased by 5 to 788 pence and on a reported adjusted basis rose 
3 to 772p per share importantly every single business in the group 
from travis perkins merchants and wickes diy through to each individual 
specialist business increased market share in its segment and grew 
sales and profitability
once again underlying net debt fell this time by £205m to £262m 
before taking account of the acquisition of bss
gross capital expenditure for the year was £65m in addition £624m 
which included an equity element of £329m was spent on acquisitions
i am also pleased to report that as a result of actions taken including 
making a £35m oneoff special contribution and improved investment 
performance the travis perkins final salary pension scheme is now into 
an accounting surplus of £32m
dividend
in view of the group’s improved prospects and strengthened financial 
position i am pleased to recommend to shareholders on behalf of the 
board a final dividend of 10p per share together with the interim divi
dend of 50p per share paid last november the total dividend for 2010 
will amount to 15p per share which will absorb £35m of cash our objec
tive is to grow dividends ahead of earnings so as to reduce dividend cover 
to between 25 times and 35 times over the medium term
acquisition of bss
the acquisition of bss was the significant event of 2010 for the group for 
a total consideration of £624m a combination of cash and equity bss is 
a well established and proven quality business with excellent people the 
prospects for the business are exciting and we look forward to working 
together to achieve the synergistic benefits from the combination of our two 
businesses and to invest in further growth 
on behalf of all employees of travis perkins i am delighted to welcome 
the bss team into our group we now have the leading plumbing busi
ness in the uk to add to the leading positions represented by other group 
businesses
employees
we continue to enjoy the support and loyalty of very committed 
colleagues we are investing to develop our people and we go to consid
erable lengths to ensure that we provide the best incentives and career 
progression possible on behalf of the board i would like to thank our 
colleagues throughout the group for their contributions to the success 
of the business
outlook
conditions for the next 12 months remain difficult there is considerable 
gloom in the wider economy but we do not subscribe to the doubledip 
theory the merchanting market fell by over 30 from its peak in 2008 
and although activity has picked up a little from a longer term perspec
tive activity levels are currently around 20 below their peak although 
we will probably see some turbulence in short term trends we expect 
activity levels to continue their gradual recovery in contrast we expect 
the retail market to continue to be soft
we will continue to pursue our organic growth strategy which is deliv
ering increasing market share and sales performance this process of 
continual improvement is supported by many new initiatives that we will 
implement during the course of the year
our key objectives to drive financial performance in 2011 are to 
continue the group’s strategy of organic growth and to integrate bss so 
we get the best out of the acquisition we have proved we can generate 
superior returns from businesses in our sector we will continue to drive 
all our businesses for cash generation 
we look forward to another year of good progress
robert walker 
chairman 
22 february 2011

“
we will continue to pursue our organic growth strategy which 
is delivering increasing market share and sales performance”  
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introduction
the group made excellent progress 
in 2010 – a year in which our organic 
development strategy against a 
background of depressed levels of 
construction activity produced a strong 
financial performance with further 
market share gains and impressive 
increases in profits we also strengthened 
considerably the group’s strategic 
position and prospects in the uk through 
the completion of the bss transaction at 
the end of the year
the prevailing culture within the travis 
perkins group is to allow managers to 
manage to anticipate markets and trends 
with our customers and to swiftly find 
sensible and workable solutions to our 
customers’ requirements our highly 
efficient central service functions are 
there to underpin and support the activity 
of our branch and operational managers 
this approach has served us well during 
the past 12 months it is our ethos  
we are a quality business consisting of 
quality people
chief executive’s 
review of  
the year
for the year ended 31 december 2010
we are also a progressive business we get on and do things with an 
unshakable focus on delivering excellent products and service we were 
able to achieve all the main ambitions we set ourselves for 2010 in 
spite of a challenging economic climate particularly in the building and 
refurbishment industry
the group outperformed its markets by 4 to 6 in 2010 on a like
forlike basis in both merchanting and retail we had good growth in 
sales taking market share and as a result grew our profit before tax 
and exceptional items and amortisation by 20 we have the systems 
and tools in place to continue our organic growth and we enter 2011 
with confidence
we pursued our acquisition target bss for most of the year finally 
succeeding in completing the acquisition in december we now look 
forward to working with our new colleagues to grasp the excellent oppor
tunities presented by this transaction
performance
all 11 businesses within the group performed relatively better through 
the recession than their sector benchmarks this was largely due to the 
intensive and wideranging groundwork we began in 2008 to ensure we 
were better equipped than our rivals to cope with changes in the market 
and the economy
throughout this annual report consistent with our approach last year 
the term ‘adjusted’ has been used to signify that the effects of excep
tional items and amortisation of intangible assets have been excluded 
from the disclosures being made the exceptional operating charge of 
£190m in 2010 relates to costs associated with the group’s acquisition 
of bss in 2009 the exceptional income related to a £327m pension 
scheme curtailment gain which arose when future increases in pension 
scheme members’ pensionable salaries were capped
for 2010 the group reported revenue up £222m at £3153m 2009 
£2931m whilst the market overall was broadly flat in value our 
revenues increased mainly through the selfhelp initiatives incorporated 
within our organic strategy this revenue increase drove adjusted oper
ating profit up 6 to £239m 2009 £225m adjusted profit before tax 
up 20 to almost £217m 2009 £180m and adjusted earnings per 
share up 3 to 772 pence 2009 752 pence the revenue increase 
of 76 comprised an increase of 50 in likeforlike ‘lfl’ sales with 
network expansion accounting for growth of 26 
excluding bss where we consolidate the last two weeks trading 
over the christmas shutdown adjusted group operating margin rose by 
01 to 78 2009 77 this reflects our strategy of investing in 
geoff cooper  
chief executive
14 15
chief e xe c u tive’s review of the year
 
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improvements to our customer propositions whilst adjusted operating 
margin in the retail division improved by 01 to 59 2009 58 
merchanting division adjusted operating margin remained at 88 
including the effect of the bss acquisition adjusted operating margin 
including bss’ post acquisition loss of £26m fell by 01 to 76 
note 5c 
after including exceptional items and amortisation of intangible assets 
in both years the group recorded a decrease of 7 in pbt to £1968m 
2009 £2127m and a decrease of 21 in earnings per share to 696 
pence 2009 884 pence 
the group generated free cash flow of £2778m in 2010 2009 
£2944m a 56 decrease yearonyear overall including the 
cash outflow relating to the acquisition of bss of £4769m net debt 
increased to £7736m 2009 £4672m for covenant purposes net 
debt was £7014m 2009 £4131m giving a net debt  ebitda ratio of 
192 times 2009 147 times and interest cover of 189 times 2009 
107 times 
including the effect of our £624m acquisition of bss group share
holders’ funds increased by £491m
the group has started the year well with lfl sales in january up 22 
in merchanting 8 up in bss and 12 in retail on a delivered basis 
wickes core up 12 kitchen and bathroom ‘kb’ up 15 reflecting 
the weak comparatives from the snow affected january 2010 the first 3 
weeks of february have also traded well with a 10 increase in lfl sales 
in merchanting 5 in bss and a 2 increase in retail on a delivered 
basis wickes core up 3 kb down 2 
in january wickes’ kb orders were down 3 and in february 
they were down 36 this reflects a combination of prevat increase 
advanced ordering in late 2010 rather than early 2011 and recent 
competitor discounting in this weak kb market our kb gross margins 
are ahead of 2009
these strong performance ratios are directly related to our managers’ 
expertise and experience our direction is heavily influenced by our 
operating managers who tell us what is really going on in the market 
no one is better placed to know what our customers are doing and 
what they need to carry out their work than our branch and operational 
managers gathering intelligence from customers is the only way we can 
really know what is happening at ground level thanks to our regular 
customer surveys and the experience and knowledge of our managers 
our antennae are highly developed
as a result the group was able to identify key turns in the course of 
the economic cycle and as a consequence
●
  take quick action to reduce costs as construction activity fell at the 

“
no one is better placed to know what our customers are doing 
and what they need to carry out their work than our branch and 
operational managers”
outset of the recession
●
  begin a programme of investing in growing our business as markets 
began to stabilise
●
 identify swiftly the opportunity and benefits of acquiring bss
we combine systems and processes which track a range of lead indi
cators with our managers’ instinct and close knowledge of customers’ 
views as a result of those relationships we know what drives our market 
and we know how to adapt and respond to changing market conditions
 
markets and our response 
we predicted in merchanting a gradual recovery in 2010 from the sharp 
contraction of activity caused by the recession which started towards 
the end of 2008 in contrast we expected a contraction in retail markets 
in 2010 following the fading of the artificial support consumers received 
from a fall in housing costs in 2009 we were broadly correct with the 
aggregate value of these two segments of the market being broadly flat 
despite continued relatively high product cost and price inflation
our tracking of lead indicators told us that construction activity levels 
were improving at the end of 2009 and the beginning of 2010 when 
the uk went into the recession at the end of 2008 builders were doing 
more and more ‘second fix’ internal work but less and less heavyduty 
foundation and block and brick building work in effect the builders were 
completing projects that were already underway this changed towards 
the end of 2009 when a slow recovery in mortgage activity encour
aged more housing related building works including the opening up of 
many new housing sites whilst this directly boosted the merchanting 
market the retail market had a tough time as inflation bit into consumers’ 
purchasing power
we responded to this turn in the market by restarting many of the 
improvement programmes that drive our organic growth strategy the main 
programmes boosted at the beginning of 2010 cover product availability 
ranging delivery services multi channel trading and account manage
ment behind these programmes significant support is provided by our 
central technology supply chain procurement and marketing functions
successful deployment of these programmes meant we were able to 
outperform in both merchanting and retailing sectors by anticipating what 
was likely to confront us and be sufficiently flexible in our working opera
tions to manage fluctuations in the market
so what is behind this quality of flexibility that we have it is because 
of the culture of our managers and the way we organise ourselves we 
try to give our managing directors boards and branch managers as much 
autonomy as possible in effect we leave our businesses and branches   
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merchanting productivity  
per employee £k  
0
100
200
chief e xe c u tive’s review of the year
with the freedom to trade in the best way they deem appropriate they 
decide on the hiring of staff on remuneration on the products they stock 
and the pricing of products our key colleagues in branches have day
today working relationships with all their customers from householders 
and sole traders to major construction businesses and they can deter
mine how to manage those customers and on what terms those deci
sions are not set in stone from a head office policymaker each individual 
business board and branch manager has the freedom to work within 
a sensible business plan aimed at delivering performance on a broad 
range of financial and service metrics 
the central functions are made to report to the business rather than 
the other way round if the managing director of a business has identified a 
significant issue or a potential problem he or she has the ability to contact 
a senior director at head office and demand an immediate response
it is our culture of ‘getting on and doing things’ that makes all our busi
nesses flexible and quick to respond every day we see many examples of 
our people getting on with fixing things solving problems on behalf of our 
customers and suppliers and improving our businesses
merchanting division
the four businesses that operate under the travis perkins brand all 
performed strongly during 2010 joe mescall chairman of the general 
merchanting division a superb merchant who has been with the group 
since 1974 and his four managing directors and their boards have all 
had an outstanding year 
merchanting division sales increased by 80 with sales from new 
branch openings contributing 07 and lfl sales improving 73 the 
lfl increase comprised 36 of price inflation and 37 increase in 
volumes we estimate that both our general and specialist merchanting 
operations recorded a performance of around 4 ahead of the market 
with lfl sales in general merchanting increasing by 67 and specialist 
merchanting increasing by 85 
these performances were achieved by improvements in our overall 
service to builders including better product availability to ensure that 
constructors and builders had sufficient stock to complete entire projects 
a great deal of effort has been concentrated on being able to supply 
products in the right quantity and at the right price our regular customer 
research indicates that over the year we have consolidated our reputation 
for being the merchant who can supply what customers need when they 
need it because of our growing international sourcing expertise we can 
increasingly supply both unique and routine products at more competitive 
2007 2008 2009 2010 2006
206 220 216 215 228
robert steward yard sales assistant kevin hancock driver robert newton branch manager
16  
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chief e xe c u tive’s review of the year
the general merchanting business 
produced strong likeforlike sales
f oc us on o rga ni c growth
paul dancer tool hire manager
robert steward yard sales assistant
left robert newton branch manager right eliot linzeyjones senior sales assistant 
the general merchanting 
business produced strong 
likeforlike sales growth 
and increased market share 
whilst eight new branches 
were opened in 2010
17 18
chief e xe c u tive’s review of the year
 
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prices than our rivals this aspect of our work relies on the vital support of 
our buying and supply chain teams working in tandem
as activity levels began to increase the travis perkins branches were 
there to support customers and we saw strong sales growth and an 
increase in operating profits in general terms when you ask a builder 
why they go to a particular supplier they give a dozen or so reasons for 
their choice travis perkins likes to be the number one choice in seven or 
eight of those decisionmaking criteria and we make sure we are
arthur davidson another great merchant with many years experience 
chairs our specialist division he and his team produced a superb perfor
mance from their four businesses whilst strengthening their strategic 
position with significant development activity
keyline
our heavy building materials and civils and drainage specialist experi
enced the toughest year of all 11 of our businesses as a result of the 
obvious squeeze in the new construction market our customers needed 
to repair a house but they didn’t have to build a new property but in line 
with our group ethos keyline responded imaginatively and instantly with 
a boost to its customer service under the banner ‘best in town’ even 
though the market was undeniably challenging keyline under the direc
tion of managing director andrew harrison led the market by supplying 
the best range of products to satisfy demand from customers this initia
tive enabled keyline to convince customers that they were first choice for 
civils products with keyline recording likeforlike sales growth ahead of 
the general merchanting division and a healthy increase in profits
city plumbing
our acquisition of bss after a protracted ninemonth process overshad
owed the activity of city plumbing since the two businesses compete 
in the same market however we were delighted by the team’s ability 
to maintain their enthusiasm and focus throughout the result is that 
managing director john frost and his team completed an impressive year 
improving their sales outgrowing their market and increasing profits in 
fact cps recorded the highest likeforlike sales growth of any of our 
mature merchant businesses that was a considerable achievement under 
the circumstances the team put together a progressive and exciting 
initiative to focus on what plumbers really require under the banner ‘what 
good looks like’ this ethos swept through the whole operation
benchmarx
our specialist kitchen and joinery business which sells to the trade under 
the guidance of managing director chris larkin is only four years old 
having completed the first two phases in growing the business namely 
its launch and then its refinement chris took over in the third phase – to 
drive profits this involved looking at fresh opportunities to attract new 
customers to benchmarx chris did an excellent job performing beyond 
our expectations motivating his team and strengthening the engagement 
of management chris also created and led a new initiative to install 
benchmarx ‘implants’ in other group trading brands offering good cross
selling opportunities this has been successful and will be pursued in 
2011 sales growth has been very strong outstripping the market leader 
by some considerable distance our budgets suggested that the business 
would make a small loss in its third year benchmarx has reached profit
ability ahead of schedule
ccf
our specialist distributor of building materials for interiors contractors 
had another excellent year led by kieran griffin its recently appointed 
managing director kieran spearheaded efforts to further widen ccf’s 
product range under its ‘one stop shop’ concept this together with a 
range of other operational initiatives enabled ccf to significantly outper
form the market in likeforlike sales growth and increase operating profits 
 
retail
all retail markets were tough in 2010 with nonfood particularly our own 
segment of diy badly affected by falling consumer confidence against 
this backdrop our retail division outperformed its market by around 6 
with further improvements to our customer proposition particularly in our 
multichannel operations where our superior technologies and fulfilment 
operations have helped us make significant gains in revenues we are 
pleased that with increasing use of retail channels by tradesmen our 
market share gains have been greatest in that segment of the market 
retail division total sales were up by 23 to £1003m 2009 
£981m with sales from new branch openings contributing 21 a 
33 sales increase arising from price inflation was offset by a 31 
volume decrease resulting in a lfl sales increase of 02 within the 
retail division’s overall lfl performance lfl sales for the full year of 
wickes’ core products were down by 20 and on the same basis kb 
sales were ahead by 95 
wickes
we continued to develop the wickes nationwide comprehensive televi
sion advertising campaign ‘wickes it’s got our name on it’ was intro
duced at the end of 2008 and has continued to establish huge brand 
kelli pennells branch assistant matt hastings sales assistant lisa massey assistant branch manager 19
chief e xe c u tive’s review of the year
 
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ccf widened its product range 
under its ‘one stop shop’ concept
f oc us on o rga ni c growth
chris williams warehouse assistant
mark smith warehouse assistant 20
chief e xe c u tive’s review of the year
 
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recognition and awareness managing director jeremy bird and his 
team have seen a considerable uplift in wickes’ sales and market share 
as a result we were initially reluctant to embark on this campaign since 
wickes is not represented in every town and city in the uk however the 
advertisements were impactful from the start the early concentration 
was on kitchens and bathrooms before moving to a broader range of 
general diy products
the advertising campaign was accompanied by improvements to 
ranges pricing and delivery options and complemented by an increas
ingly powerful multichannel approach as a result wickes achieved like
forlike sales growth and improved operating profits in a falling market 
– a remarkable performance and a tribute to the attractiveness of wickes 
as a nononsense home improvement retailer 
tile giant
mo iqbal started the business and continues to drive it forward with great 
passion and effort travis perkins acquired the company in late 2007 
when it had 29 stores mainly in the midlands there are now 101 and 
tile giant is a serious challenger in the market the main focus has been 
to develop an outstanding product range initially tile giant concentrated 
on ceramics but following the acquisition of two other businesses that 
specialised in other segments of the market its product offering has 
been strengthened significantly the result is tile giant offers its growing 
number of customers a wide range of excellent products at great prices 
all under one roof this has driven a positive and marketleading likefor
like sales performance in 2010
retail productivity  
per employee £k  
0
100
200
189 197 186 198 186
mark davis branch manager
2006 2007 2008 2009 2010 21
chief e xe c u tive’s review of the year
 
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toolstation
it was another outstanding year for toolstation driven by the entrepre
neur mark goddard watts when the group acquired a 30 stake in 
the business in april 2008 toolstation had 12 stores but as a result 
of the concept being rolled out so effectively there are now 84 based 
on its worldclass inhouse developed technology it continues to be 
a lowcost business that delivers outstanding product availability and 
value to its customers 
investors
throughout the course of the recession the group has been strongly 
backed by investors the decision to bring stability to our balance sheet 
with the rights issue in may 2009 has been of great benefit to the group 
investors taking up their rights will have seen an excellent return for their 
support to the company we meet our investors at least twice a year and 
we continue to benefit from their support
our banks and us note holders continue to be similarly very supportive 
of the group when there was a great deal of uncertainty in the economy 
and in the construction industry in particular we informed investors and 
bankers what we thought would happen and what we could do to counter 
the conditions we performed ahead of our targets and retained confi
dence in our ability to run our businesses robustly and effectively
acquisition of bss
we approached the bss opportunity with great confidence because we 
believed bss was strategically strong and financially very attractive 
although we had a considerable amount of plumbing business through 
our various brands we were in the second tier of national companies 
operating in the market by acquiring bss and combining our activities 
the group has been promoted to a leading position in the market making 
us a powerful force in serving customers and helping suppliers meet their 
own strategies
the group’s published target for synergies arising from the bss 
acquisition is £25m which comprises £19m in respect of goods for 
resale and £6m of overhead savings we remain confident of achieving 
these targets
the integration programme has commenced but it is too early to 
provide any further meaningful insight about the synergies available to 
the group however it is clear that achieving the target will require a 
substantial effort from teams across the business and in particular the 
allocation of considerable resource to and investment in supply chain 
and it we aim to provide an update at the interim stage this year on our 
progress towards achieving these synergies
management
because of our scale and our focus on supplying what our customers 
want we have consistently achieved the highest return on sales amongst 
our peers the group’s prerecession operating margin was typically 
more than half as much again when compared to our national competi
tors in the more recent tougher economic climate whilst our operating 
margin has come down by about a quarter our peers have suffered 
proportionately larger falls
we put a great deal of this difference down to the attitude of our 
managers as i discussed earlier they are highly skilled at anticipating 
problems and finding sensible and swift solutions they are on top of 
their business so that they respond to tough times by closely managing 
gross margin and reducing costs the disaggregated culture of decision 
making and the prevailing ethos of running our business has taken many 
years to establish 
our positive management environment makes for a more rewarding 
place to work following the actions we took to slim down our top 
management resources at the start of the recession we have not seen 
many departures from our director group of 202 people since then
every single branch in the group is subject to a detailed review of 
its performance analysing sales contributions from all of them branch 
managers are highly motivated individuals who are keen to perform at 
their optimum level we reward our staff well and they are incentivised 
through effective bonus schemes 
travis perkins in the community
characteristic of how the group operates driven from the ground 
upwards we continue to move forward our ‘1000 projects’ community 
programme
every branch is encouraged to establish a community project inspired 
by a personal contact completed in their spare time and using our own 
materials it’s not mandatory but the response rate has been exception
ally high the projects create a tremendous sense of teamwork and 
goodwill the initiative was launched when we reached the milestone of 
1000 branches with the inclusion of bss we now operate from over 
1800 branches and we are reviewing what the next version of this 
programme looks like 
i believe the work in our ‘1000 projects’ initiative contributes greatly 

“
branch managers are highly motivated individuals who are 
keen to perform at their optimum level” 22
chief e xe c u tive’s review of the year
 
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to improving engagement of staff in a vast majority of cases employees 
want to be recognised for what they do and many like being part of a 
winning and harmonious team the ‘1000 projects’ works were innova
tive and helped us to do things that move beyond clichés about business 
in the community 
the board of directors was also encouraged to take part in a commu
nity project last year board members spent a day at battersea park in 
london digging and creating a community garden
the group’s charitable donations were in the region of £200000 five 
years ago last year we together with our colleagues customers and 
suppliers contributed £17m
our charity fundraising activity continues to play a key role in engaging 
our colleagues across the group enabling colleagues to take time to 
support charitable causes that are close to their hearts our individual 
businesses selected their own charitable causes in 2010 after the group 
devolved its centrallymanaged fundraising model to better fit with our 
decentralised business model we now partner with 11 uk based charities 
each managing director leads fundraising for his own business 
assisted by a charity committee of employee representatives team 
building and charity fundraising activities are combined powerfully 
strong colleague engagement has led to more than £17m being raised 
in 2010 an uplift of more than double the 2009 total – despite the 
recession
fundraising has been particularly visual in our travis perkins brand 
which adopted the breast cancer campaign and children’s hospices uk 
charities on a twoyear partnership and in our wickes brand which raised 
nearly £655000 for its adopted charity leukaemia and lymphoma 
research the travis perkins business resprayed 12 of its delivery 
vehicles pink sourced and sold pink products in its branches and 
even changed its name to ‘travis pinkins’ for a national day of fund
raising keyline’s partnership with the prostate cancer charity has been 
beneficial to the charity in terms of fundraising and substantially raised 
public awareness of prostate cancer in the maledominated building and 
construction sector other beneficiaries of charity partnerships with travis 
perkins’ businesses include clic sargent childline whizzkidz and the 
warwickshire and northamptonshire air ambulance
more than £225000 was donated through the company’s payroll 
giving facility in 2010 all of the partner charities benefited from a share 
of the donations together with other charitable causes personally chosen 
by employees much of this was raised through a popular and fully 
licensed colleague lottery colleagues donate £1 per month from their 
salary with up to 50 going to the charity of their business more than 
70 of employees donate through the lottery with over £60000 raised 
for the partner charities in 2010
strategy
we are determinedly pursuing our vision of ensuring that anyone in 
the uk who wants to be supplied with materials to construct repair or 
improve the built environment will have a travis perkins business as their 
first choice our strategy to achieve this is relatively simple
●
  through a low risk programme of continuous improvement have the 
best offer to customers in each market and
●
  by applying our business model of disciplined margin management 
tight cost control clear focus on capital returns and a strong alignment 
of accountability and incentives have the highest operating margin in 
each sector
this approach has produced sectorleading performances in revenue 
growth and returns and has enabled us to grow our asset base to 
achieve powerful positions in each sector of our market 
over the last four years we have seen three clear turning points in 
the course of the recession in construction markets – a sharp downturn 
a return to stability in activity at low levels and a gradual but choppy 
recovery which still has a long way to go at each turn we decisively 
adapted our stance to trading investment and cash we took costs out 
rapidly and decisively at the downturn put more investment back in as 
the market stabilised and of course committed to a major acquisition as 
growth returned last year these actions mean we are now positioned with 
a larger footprint in the sector a leading position in plumbing and heating 
to add to our longstanding leading position in heavyside and timber and 
with our branch network intact having seen closures elsewhere
we are now poised to use our management resources to exploit this 
position and achieve further growth in returns to shareholders
as i have noted the course of the recovery is likely to be choppy and 
conditions for the next 12 months remain challenging there is consider
able gloom in the wider economy but we don’t subscribe to the double
dip theory the construction market fell by over 30 in 200809 and 
although activity has picked up a little on a longer term perspective 
activity levels remain low
the group’s organic growth strategy is based on a combination of self
help initiatives and external expansion in particular the group will extend 
its direct sourcing operations in the far east and enhance its supply chain 
whilst at the same time investing in the it resource necessary to support 
those and many other activities  23
chief e xe c u tive’s review of the year
 
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left andy marr branch manager right scott richardson sales assistant
keith ward driver
scott richardson sales assistant
keyline’s ‘best in town’ programme 
delivered improved performance 
f oc us on o rga ni c growth  
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chief e xe c u tive’s review of the year
we will continue to pursue this organic strategy which is delivering 
increasing market share and sales performance whilst we monitor very 
closely both our performance and market conditions to keep ahead of our 
competitors we will retain our policy of continuous improvement of our 
businesses taking many small steps in a large number of areas of our 
business this process of continual improvement is supported by many 
new initiatives that will be implemented during the course of the year
our acquisition of bss was the stand out event at travis perkins last 
year our commercial analysis indicated we would be acquiring a strong 
company with quality people and that the prospects for the business are 
excellent and exciting this has proven to be the case
we are realistic about market prospects but are positive about the 
future because we have the strategy market position execution skills and 
scale to respond quickly to market changes and to deliver outstanding 
service to our customers
our three main targets for 2011 to create value are to
●
  continue the group’s strategy of organic growth we have more 
initiatives in gestation to bring to market
●
  use our strong cash generation to pay down debt maintain investment 
in continuous improvement selectively continue network expansion 
and increase dividends
●
  integrate bss and get the best out of the acquisition we have proved 
we can generate superior returns from businesses in our sector and 
will work hard to apply those skills to the bss businesses
we look forward to another year of good progress
geoff cooper  
chief executive 
22 february 2011 
dale white forklift driver rhianon rickard senior cashier
24  
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chief e xe c u tive’s review of the year
wickes achieved significant 
additional sales
f oc us on o rga ni c growth
wickes achieved significant 
additional sales thanks 
to its next day delivery 
service six days per week 
its standalone kitchen and 
bathroom stores and its 
new paint range
leanne pointon 
customer assistant
25 26
 
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chief operating 
officer’s review 
of the year 
for the year ended 31 december 2010
introduction
the group’s strength is based on the 
commitment dedication and motivation of 
an outstanding team of people who work 
towards a common goal there are 22500 
of us and we are excited going into 2011 
about the prospects of sharing best 
practice between our existing businesses 
and the 5000 bss colleagues who have 
recently joined us
last year was tough but our competitors 
experienced even harsher times we 
continued to grow our 11 merchanting 
and retail businesses thanks to our proven 
and detailed systems of operation and 
we are equipped to respond rapidly to 
change we gained from an initial increase 
in housebuilding in early 2010 and even 
when that activity levelled off we were 
able to cope with changing conditions as 
a result all of our businesses reported 
excellent results under challenging 
circumstances
outperformance from resultsdriven people
i have no hesitation in repeating our driving vision – that the travis perkins 
group is a great place to work and a great place for our customers and 
suppliers to do business
we place staff engagement and fulfilment at the very heart of what 
we set out to achieve i firmly believe in the mantra that happy well
motivated people are more productive our overarching vision is to create 
an environment that gets the best from all colleagues and that is a great 
and safe place to work
our business priorities drive our people initiatives during 2010 
this was clearly illustrated by our pioneering approach to flexible 
working in the merchanting sector the economic downturn gave us 
the impetus to review and improve the flexibility of our branch teams 
in our merchanting business we studied our customer flow rates and 
instigated a process to ensure that we were operating our branches 
more appropriately the objective of improving sales customer service 
and operating standards by ensuring the right people were at the right 
place at the right time has been a challenge but a very worthwhile one 
it will enhance our productivity and will contribute to attracting and 
retaining our people 
our people initiatives gained real momentum last year and have 
opened a new world of improved flexibility in employment models and 
working patterns to reflect our early morning peak hours in the trade 
sector wickes has been operating this system for many years and we 
will now embrace this flexibility throughout the group where appropriate
importance of an improving safety record
our ‘stay safe’ culture is central to the entire management team’s 
approach by the very nature of our business there is considerable 
movement of heavy machinery and transport on a daily basis in our ware
houses depots and operational sites in a determined effort to protect our 
people we have continued to concentrate on our ‘keep your feet on the 
ground’ programme to avoid accidents over 2500 drivers were trained 
last year in our ongoing effort to meet the spirit as well as the letter of 
the current safety legislation
 
building engagement among our colleagues 
in 2010 we employed a bespoke independent research company to carry 
out our detailed staff survey which indicated very satisfactory levels of 
colleague engagement the results showed that a majority of our people 
john carter  
chief operating officer 27
 
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chief operating offi cer’s review of the year
wanted the group to
●
  reward staff appropriately
●
  communicate effectively
●
  help develop their careers
we believe that engaged colleagues are more likely to drive customer 
service delivery and in turn to create sustainable and profitable growth 
our survey called ‘you talk we listen’ produced a significant 25 
improvement in engagement scores across all respondents over 70 of 
our people took the time to complete the questionnaire
the survey found that 82 of colleagues are proud to work in their 
particular branch or department and 70 were proud to be part of the 
company this harmony has undoubtedly led to all 11 of our businesses 
outperforming the sector in which they operate 
unlike 2009 when we had to reduce the workforce last year we main
tained our staffing level in a carefully controlled way
there are many ‘stars’ in the group there are far too many to mention 
them all here but i would like to recognise the work by individuals who 
have led the achievements of our many teams our category management 
director norman bell supply chain director robin proctor global sourcing 
director ian preedy and the group’s human resources director carol 
kavanagh plus our divisional chairmen joe mescall arthur davidson and 
jeremy bird
many of those individuals have very many years of loyal service and we 
have benefited from the dedication of a stable and robust merchanting 
team and a fusion of new blood and new skills from the senior figures in 
our retail businesses
the group thrives on the selection recruitment and induction of its 
people during challenging times we have used our training and develop
ment resources to keep our people motivated and engaged 
it is critical to my role that i walk the branches and the warehouses i 
am continually proud and encouraged by the commitment shown in all 
areas of our businesses
infrastructure investment  product 
availability disciplines
the working environment across the group is resultsorientated last 
year we continued to drive our selfhelp programme on the merchanting 
side we identified up to a dozen work streams where we could make a 
significant difference delivering goods quickly speeding up our service 
and ensuring we stocked sufficient quantities of product to suit our 
customers’ demand
on the retail side and with wickes in particular we focussed on 
three main strands of activity to be a specialist kitchens and bathrooms 
distributor to be more focussed on the trade element of diy ie the small 
trader and to become a multichannel business by adopting an approach 
of ‘anything anywhere anytime’ with three routes to market via stores 
telephone sales or online this gives our customers the option to access 
our goods in a variety of ways
 
supply chain gains  global sourcing
the essence of the group’s supply chain is to have the right products 
in the right place at the right time through detailed research and 
consultation with customers we have developed a core range of goods 
called the mandated range this comprises about 1500 products or 
stock keeping units that must be stocked in sufficient quantity for a 
customer to complete an entire project purchase rather than a single 
unit being classed as meeting a customer’s needs as a result our avail
ability targets are more challenging to meet however as we improve our 
performance the sales rewards are much greater we started extending 
this programme in september 2010 and will increase its coverage from 
50 of our sales to 75 of sales our expected maximum during 2011
we have significantly improved the utilisation of our 2000 commercial 
vehicles through gps tracking which has helped reduce our vehicle co
2 
emissions by 812 tonnes the addition of a 500000 sqft warehouse to 
the distribution network and the opening of a ‘heavyside’ regional distri
bution hub have greatly improved our efficiency in moving goods to the 
right locations at the right times
another critical innovation has been the introduction of a new daily it 
alert all of our branch managers receive a daily communication informing 
them of product quantity and availability in their branch in addition 
the senior managers of our suppliers are also notified of their product 
availability this tells our suppliers about their missed opportunities for 
potential sales throughout our branches we set tough targets but it has 
proved to be a highlyeffective selfmanaging process 
our sourcing is a truly global activity sixty countries manufacture 
goods for the group covering every continent except antarctica
we buy a significant quantity of product direct from between 15 and 
20 countries including ceramics and plywood from brazil timber from 
scandinavia pottery from morocco and stone and variety of other goods 
from india increasingly we deal directly with the manufacturers rather 
than engaging specialist ‘intermediaries’ often we take responsibility for 
the product once it comes off the production line and have a team of 
people who are in charge of quality control at the manufacturing source 
in these cases we are totally in control of packing and distributing the 

“
the economic downturn gave us the impetus to review and improve 
the flexibility of our branch teams in our merchanting business” 28
 
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chief operating offi cer’s review of the year
goods from the 14 factories who supply us back to our own distribution 
hubs in the uk
our sourcing activity has had a positive effect on our margins it has 
also been a great learning curve dramatically changing the way we 
operate and requiring many administrative departments within the group 
to adapt their systems accordingly
we have opened a consolidation centre in shanghai which has greatly 
improved our trading in china the group buys products from 85 manu
facturers in china but often in insufficient quantities to fill a container for 
immediate transport back to the uk however the new centre enables us 
to store goods safely and securely until the time there is sufficient stock 
to fill a freight container
we want to buy the best possible products at the best possible price 
but we are not prepared to compromise our standards by dealing with 
unethical companies we do not trade with suppliers who fail to meet 
our strict standards in staff welfare health and safety and care for the 
environment we are proud to set the standard for our sector
 
bss integration
i lead the integration team for bss a detailed integration plan was devel
oped during the drawnout negotiation with the oft last year a four
phase plan was initiated on december 14 2010
●
  phase 1 communication in the first few days we had meetings with 
as many bss personnel as possible to brief them on our plans and to 
welcome them to the travis perkins group
●
  phase 2 definition this involved understanding and prioritising the 
key projects – particularly the early synergybearing opportunities
●
 phase 3 synergies and overheads – our current activity
●
  phase 4 longterm structural projects such as it and harmonising 
supply chains
merchanting
all four travis perkins branded businesses produced strong likeforlike 
sales growth and increased market share while trading margin was 
maintained and good profit growth was achieved
eight new branches were opened and key sales projects were 
successfully undertaken to increase the number of accounts opened 
product availability continued to increase and strong productivity 
growth was achieved together with enhanced multiskill training for 
branch colleagues
number of branches
0
2000
1000
2006 2007 2008 2009 2010
1022 1125 1223 1238 1728
ge ographical sales 
 of total 2010 sales
north midlands
south east south west
27
27
41
24
27 19
19
16
merchanting retail
wayne meads manager 29
 
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chief operating offi cer’s review of the year
tile giant opened 15 new 
branches in 2010
jim smith assistant manager
f oc us on o rga ni c growth  
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chief operating offi cer’s review of the year
city plumbing supplies
thanks to improved sourcing city plumbing improved its gross margin 
and showed a strong growth in profits the business achieved a consis
tently high sales performance and its own label iflo performed well
ccf
the business extended its flooring range and with the help of improved 
supply chain initiatives ccf enjoyed strong growth three branches relo
cated to better premises
keyline
the ‘best in town’ programme delivered improved performance with 
strong growth in the civils and drainage sector in the second half of 
the year trading margins were maintained and good profit growth was 
achieved
benchmarx
twentyone new businesses were opened on existing group sites and 
a further two standalone branches the company achieved very strong 
likeforlike sales growth
retail
wickes
wickes achieved significant additional sales thanks to its nextday delivery 
service six days per week its standalone kitchen and bathroom stores 
and a new paint range there continues to be considerable investment in 
the online and catalogue side of the business
toolstation
turnover increased by 70 to £70m with an increase in its customer 
base of 479000 there are now 84 stores serving 85000 customers 
each week
tile giant
there were 15 new branch openings last year taking the total number to 
101 market share has grown to over 4 of the uk tile market
the year ahead
2011 will again be a difficult year but we have invested a great deal of 
time in developing operational systems that enable us to compete in the 
marketplace better than our rivals we have innovative and exciting proj
ects and work streams ready to roll out this year and we feel confident 
about being able to outgrow our competitors by being better
we have the best teams in the sector it will be a year for integrating 
bss achieving synergies and giving our businesses the support they need
john carter 
chief operating officer 
22 february 2011
sophie buchanan assistant branch manager
30  
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chief operating offi cer’s review of the year
benchmarx opened 21 new businesses 
on existing group sites
name surname title
matthew carberry
kitchen designer
f oc us on o rga ni c growth
31 32
 
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finance 
director’s review 
of the year 
for the year ended 31 december 2010
introduction
the acquisition of bss finally completed 
on 14 december was the key highlight 
of 2010 the acquisition process took 
from april to december longer than we 
initially anticipated and absorbed much 
management time but was completed on 
satisfactory terms but it was not the only 
highlight of last year 
we produced a healthy 20 increase in 
adjusted pretax profits to £217m with 
the merchanting division performing 
ahead of our expectations at the 
beginning of the year
our working capital management was 
also very strong and with tight controls 
on capital expenditure we were able 
to deliver a substantial reduction in 
underlying debt of £205m which showed 
considerable progress in the light of the 
challenging economic climate 
strongest likeforlike performance  
on record
our concentration on achieving further gains in market share at satisfac
tory profit margin led to the strongest relative likeforlike trading perfor
mance around 4 ahead of the trade market and around 6 ahead of 
the retail market since i became finance director fifteen years ago in 
such difficult economic circumstances this was a major achievement
financial objectives achieved
our principal objectives for 2010 were to reduce group borrowings 
through cash generation continue the creation of shareholder value by 
increasing profits and increase the group’s market share via likeforlike 
sales growth expansion through acquisitions and instore developments 
we exceeded those targets when the effect of the acquisition of bss is 
excluded from net debt
thanks to better market conditions in q2 and q3 last year our 
merchanting businesses performed very strongly due to a programme of 
sustainable organic growth while our retail businesses also performed well 
the group’s operating margins were very healthy with merchanting 
operating at 88 while in retail we achieved a 59 margin both 
merchanting and retail were the highest in their respective sectors
the group incurred net exceptional operating charges of £19m in 
2010 £21m of exceptional costs related to the acquisition of bss which 
comprised £13m of professional and bank fees and £8m of charges 
arising from post acquisition adjustments to assets and liabilities in the 
books of bss there was a £2m exceptional credit to operating profit due 
to the partial release of exceptional onerous lease provisions established 
in 2008 after charging these exceptional operating items operating 
profit was £220m 2009 £257m 
overall lower interest rates combined with significantly lower borrow
ings following the rights issue have reduced net finance charges excluding 
the effects of an exceptional bank fee writeoff and other finance income 
and charges associated with the pension scheme by £13m 31 the 
average interest rate during the year was 31 200937
excluding the effect of exceptional items the adjusted tax charge was 
£60m an effective rate of 276 compared with £46m 256 in 2009 
the increase was due mainly to the nonrecurrence of the reduced ifrs 
2 share option charge in 2009 
basic earnings per share were 696 pence 2009 884 pence 
adjusted earnings per share note 12b were 772 pence 2009 752 
pence a 27 increase this reflects the 13 dilution of the £300m 
paul hampden smith  
finance director 33
 
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finance d ire ct or’s review of the year 
the directors remain committed to the generation of longterm share
holder value which we believe will be achieved through
●
  increasing the group’s market share via a combination of lfl sales 
growth and targeted expansion through acquisitions brown field open
ings and instore development
●
  improving profitability with a medium term target for profit growth in 
percentage terms exceeding that for sales
●
  investing in projects and acquisitions where the posttax return on 
capital employed exceeds the weighted average cost of capital of the 
group by a minimum of 4
●
  generating sufficient free cash flow to enable the group to expand its 
operations whilst funding attractive returns to shareholders reducing 
its debt and pension deficit
●
  operating an efficient balance sheet by structuring sources of capital 
to minimise the group’s weighted average cost of capital consistent 
with maintaining an investment grade financial profile with the ratio of 
net debt to ebitda being between one and two and a half times 
●
  maintaining longterm dividend cover at between two and a half and 
three and a half times earnings
continued focus on strong cash generation
despite the tough operating conditions the group still managed to 
generate £343m from operations before exceptional and special pension 
cash flows of £53m free cash flow for the year was £278m 2009 
£294m
before including the £295m cash element of the bss acquisition and 
disposal proceeds of £17m gross capital expenditure and investment 
totalled £65m £24m was spent on capital replacements and £41m 
on expansion including £13m on toolstation we believe our culture of 
undertaking small incremental improvement projects with strict return 
criteria for each expansion project is a major strength of the group 
excluding the £477m effect of acquiring bss and the £35m oneoff 
pension payment net debt reduced by £205m to £262m at the end of 
2010 at 31 december total debt was £774m 
at 31 december 2010 the group had committed uk bank facilities of 
£857m and 525m of us private placement notes in issue in agree
ment with its lenders during the year the group bought in but did not 
cancel £84m of its £1000m revolving credit facility in return for a profit 
financial review

“
our merchanting businesses performed very strongly due  
to a programme of sustainable organic growth”
rights issue in the middle of 2009 there is no significant difference 
between basic and diluted earnings per share
the following table shows the group’s key performance indicators 
results 2010 2009 2008 2007
revenue growth  decline 76 78 03 119
lfl revenue growth  decline  50 86 45 81
adjusted operating profit to sales ratio 76 77 85 100
profit before tax decline  growth  75 454 440 127
adjusted profit before tax growth  decline  203 113 225 187
net debt to adjusted ebitda note 38 19x 15x 28x 25x
adjusted interest cover note 10 189x 107x 43x 54x
adjusted return on capital note 37 122 109 129 159
free cash flow note 36 £2778m £2944m £1853m £1578m
adjusted dividend cover note 13 51x  85x 33x 34
 
2038604 proof 2 310311
finance d ire ct or’s review of the year 
of £3m which has benefited finance charges in the income statement
at the instigation of one of the group’s counterparty banks the group 
realised £14m cash from cancelling an in the money cross currency 
swap associated with its us private placement borrowings this derivative 
has been replaced by four us dollar forward contracts 
the peak and minimum levels of daily borrowings on a cleared basis 
during the year ended 31 december 2010 was £876m and £551m 
respectively 2009 £1083m and £438m the maximum month end 
cleared borrowings were £736m 2009 £1035m at 31 december 
2010 the group had undrawn committed facilities of £493m 2009 
£515m
note 31 gives details about the group’s operating lease commitments 
most of which relate to properties occupied by the group for trading 
purposes
pension fund into surplus
at 31 december 2009 the gross deficit of the travis perkins’ final salary 
pension scheme was £43m which following negotiations with the scheme 
trustee the group has agreed to eliminate over an eightyear period 
in june 2010 we reached a further agreement to fund £35m of the 
deficit using a group controlled special purpose vehicle ‘spv’ the 
pension scheme will be entitled to receive the income of the spv for 
a period of up to 20 years subject to funding levels and this income 
is backed by the security of 16 travis perkins’ freehold properties the 
existing cash contributions to reduce the deficit of the pension scheme 
will fall from £18m in 2010 to £16m in 2011 
due to the combination of the oneoff £35m contribution to the 
fund and the strong performance of the fund the capping of pension
able salaries at 3 in december 2009 and the increase in employees’ 
contributions in april 2009 the travis perkins pension scheme now has 
an accounting surplus of £32m the bss pension schemes have an 
accounting deficit of £60m using the same actuarial assumptions as the 
travis perkins’ scheme
extracting value from our property 
portfolio
the group currently owns about 341 freehold sites giving us flexibility 
operationally one example of this is our site in guildford where we have 
located travis perkins and city plumbing branches we are now also 
building a new wickes store and selling some of the excess land for 
£11m capital expenditure on this project will be £6m 
our property team makes a very important contribution to our opera
tions we now expect to make approximately £10m of property profits 
and generate £15m to £20m of cash from this activity each year at the 
yearend the carrying value of our freehold and long leasehold property 
portfolio was £262m compared to £247m at the end of 2009
capital employed and balance sheet
capital employed at the end of 2010 was £1952m and the group’s 
adjusted return on capital for the year was 122 which continues to be 
above our weighted average cost of capital of 81
our business volumes continue to run at around 20 below the peak 
at the high part of the cycle – and at the low point were some 30 lower 
– but our returns throughout this period have continued to exceed our 
weighted average cost of capital
our balance sheet remains very strong and once again there were 
no impairments to the carrying values of goodwill and other intangible 
assets across the group our operating assets continue to be highly cash 
and profits generative
during the year the daily closing share price ranged between 665p 
and 1058p the shares closed the year at 1058p 466p above the june 
2009 theoretical rights issue price of £592p which resulted in a total 
market value or market capitalisation of £256bn 
effective financial risk management
the principal risks and uncertainties of the business are covered under a 
separate summary report on pages 49 to 54 in summary the key points 
of our financial risk management are 
●
  the group seeks to maintain a strong balance sheet
●
  effective cash and working capital management is accorded top 
priority
●
  we retain significant headroom of over £200m in our borrowing facili
ties and we have good relationships with our bankers
●
  we operate within comfortable margins to our banking covenants
●
  the ratio of net debt to ebitda earnings before interest tax and 
depreciation has to be lower than 35 it was approximately 19 at 
the yearend and
●
  the number of times operating profit covers interest charges has to 
be a least 35 times and it was nearly 20 times in 2010
●
  we serve over 150000 ‘live’ customer accounts and no one customer 
accounts for more than 1 of our sales the bad debt charge was 
059 of credit sales 35
 
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finance d ire ct or’s review of the year 
city plumbing put together a 
progressive and exciting initiative
f oc us on o rga ni c growth
stephan towers showroom manager
dan cuchi sales assistant
city plumbing put 
together a progressive 
and exciting initiative to 
focus on what plumbers 
require under the banner 
‘what good looks like’ 36
 
2038604 proof 2 310311
finance d ire ct or’s review of the year 
●
  our product selling prices tend to reflect inflation in materials prices
●
  we conducted extensive due diligence on bss ahead of acquiring the 
business
integrating bss 
bss was a financially and operationally wellmanaged company but not 
unexpectedly there is a great deal of work to do to bring our two systems 
together this work is well underway and we expect a relatively smooth 
and swift integration process for our financial reporting analysis and 
management systems
in 2011 we have embarked on driving out the synergy benefits from 
combining bss with travis perkins and on integrating information flows 
and reporting
paul hampden smith 
finance director
22 february 2011 37
 
2038604 proof 2 310311
environment 
report 
for the year ended 31 december 2010
our vision is… 
“to become the best providers of 
responsibly sourced resource efficient 
products fit for low carbon building and 
refurbishment delivered with a low carbon 
footprint and minimal waste by people 
who care in doing this we will become 
the most trusted group for providing 
environmentally sustainable solutions” 
we believe that taking responsibility for 
our impact on the natural environment in 
this way creates added business value and 
is compatible with operating a successful 
business we seek to anticipate changes in 
demand for products and services that are 
driven by environmental considerations 
and invest to develop our offer where we 
can see reasonable prospects of economic 
return this requires us to adopt an 
inclusive approach involving colleagues 
customers and suppliers to deliver 
environmental improvement
our vision is actively used to help guide 
decisions on our business priorities and 
consult other stakeholders
we know that being green makes us money in 2010 we have esti
mated that 5 of our earnings before interest  tax ‘ebit’ comes from 
profit on the sale of environmental technologies including insulation 
profit from timber product sales to customers requiring responsibly 
sourced product and reduced waste and energy costs net of environ
mental operating costs we also see opportunities in developing addi
tional services that will help customers negotiate an ever increasingly 
complex sustainability agenda we expect to see significant growth in the 
environment contribution to ebit over the next 2 years
continuous improvement
management systems
this year has seen a doubling of the resources we deploy to pursue 
our environmental vision in particular we have strengthened our envi
ronmental management system energy management activities and the 
development of commercial sustainable solutions we have increased the 
breadth of representation in our non executive environmental advisory 
panel which now comprises nine members meeting twice a year the 
panel remains an important touchstone for us in determining how we 
approach each aspect of our environmental vision and has been espe
cially useful in its advice on matters of engaging our people in 2010 we 
asked all our branch and store managers to share their environmental 
innovations via an internal ‘crowdsourcing’ website and embarked on 
activity to encourage green thinking in our daytoday practice 
engagement
we stepped up our engagement activities in 2010 talking to more people 
and organisations about our environmental performance in total we initi
ated or responded to 87 consultations in addition to those we routinely 
had with our trade body and non governmental organisation ‘ngo’ 
partnerships the construction product association ‘cpa’ british retail 
consortium and wwf’s global forest and trade network ‘gftnuk’ 
we sponsored and were involved in the production of a sustainable 
housing action plan report on the community green deal advising in 
particular on how the supply chain might structure itself to deliver low 
carbon refurbishment via local authorities in the west midlands earlier 
in the year we provided a case study for the cpa’s low carbon refurbish
ment guide we also provide the chairman to the cpa’s pallet repatriation 
working group 
we continue to supply detailed information and plans to the carbon 
disclosure project forest footprint disclosure project waste and 
resources action plan ‘wrap’ and the gftnuk in return we receive   
2038604 proof 2 310311
38
environment repor t 
information to benchmark our environmental performance in 2010 we 
extended our engagement with wrap by signing the halving waste to 
landfill commitment and will provide performance information on this 
to them in future years in 2010 we were awarded the carbon trust 
standard certifying that we have genuinely reduced our carbon footprint 
and are committed to making further reductions year on year
metrics 
this year we have accounted for the environmental impact of our invest
ment 30 in toolstation by including relevant performance data in this 
report proportionate to our investment in them we have installed over 
1000 new electricity meters and increased the number of sites on a 
central waste contract to 97 all of these improvements allow us to 
report our environmental performance with greater accuracy with the last 
two allowing us to disaggregate environmental performance to site level 
and target sitebysite improvements
the increased importance of multichannel retailing including 
toolstation and direct sourcing increase the requirement to look at our 
carbon footprint beyond country and company boundaries and in 2011 
we intend to estimate carbon dioxide equivalent emissions for the prod
ucts journey from factory gate to construction site 
when measuring performance we combine and convert information 
from across the group to create a common base this produces indi
cators comprising a combination of measured averaged and estimated 
performance wherever possible we use external standards for data 
collection and reporting techniques and continue to work to improve the 
accuracy of the measures reported
we have again asked lloyds register of quality assurance ‘lrqa’ 
to verify the materiality and accuracy of our environmental performance 
indicators a copy of their statement can be found in the environment 
section of the travis perkins’ web site
incidents  complaints
during 2010 travis perkins received an increase in complaints and inci
dents from previous years the majority of the increase in complaints 
were from customers relating to our timber chain of custody system 
details of the reportable incidents and complaints can be found in the 
relevant sections of this report
bss
the purchase of bss in december 2010 presents growth opportunities in 
sales of renewables and other low impact solutions and will change the 
environmental footprint of the expanded group bss previously published 
environmental incident s  
and complaint s
25
50
0
incidents complaints
5
5
5
10
6
10
4
17
3
6
5
37
2005 2006 2008 2009 2007 2010
samantha hodkin sales coordinator f  p wakefield sulayman cham senior warehouse person 
f  p wakefield
indications of their environmental performance along similar lines to our 
own this will help us understand quickly where there may be environ
mental efficiencies across the expanded group in 2011 we will seek to 
realise these opportunities whilst ensuring group policies legal compli
ance pollution prevention and continuous improvement are consistently 
applied in all operating sites it is our aim that all bss sites will operate 
with iso14001 certified management system tools by early 2012
the environmental impact from bss for the 16 days that they were 
part of the expanded group is not included in the figures presented in 
this report
following the inclusion of bss we will consider whether the current key 
performance targets we have remain appropriate for the enlarged group 
and would aim to publish revised targets if appropriate by the end of the 
year this review will also consider the validity of the time scale for targets 
and a potential need to set targets for a 10 – 15 year time line compared 
to our current 5 years horizon
toolstation 
during 2010 our equity share in toolstation was accountable for 274 
tonnes of waste of which 37 was recycled 1029 tonnes of carbon 
emissions 2678 litres of water and 114 tonnes of packaging toolstation 
did not receive any environmental complaints or have any reportable 
environmental incidents during 2010  
2038604 proof 2 310311
environment repor t 
bss – the newest addition to the 
travis perkins group
carl adcock branch manager f  p wakefield
39 40
 
2038604 proof 2 310311
environment repor t 
market place
responsible supply
the demand for responsibly sourced products in 2010 remained strong 
we were asked to provide certified timber for £17m of sales 9 of total 
timber sales we also detected a growing awareness of the building 
research establishment ‘bre’ framework standard for the respon
sible sourcing of construction products bes 6001 amongst our largest 
customers although we have seen very little change in awareness of any 
aspect of responsible sourcing from smaller building firms 
as one of the largest multisite holders of fsc and pefc chain of 
custody and the only multiple merchant that offers certified timber at 
every branch selling timber we strive to ensure that our supply chain 
operates at the highest levels of integrity however in 2010 we recorded 
16 complaints about our chain of custody system and responded to all 
of them this level of complaint has prompted us to think again about 
how we organise our controls in 2011 we are determined to improve 
the service we give to discerning customers seeking responsibly 
sourced product
low impact products
at the end of 2010 wickes in partnership with the mark group launched 
an insulation and renewable power installation service the service takes 
advantage of the subsidies on offer from feed in tariffs and carbon 
emission reduction targets to offer a highly attractive and professional 
service in 2011 wickes will look to grow this service on an internet only 
platform before moving into a multichannel offer in 2012 and beyond 
excluding the installation service the group sells over 3000 prod
ucts that have either a beneficial or reduced ‘in use’ impact on the 
environment these products appear across categories and brands and 
sales growth in these products has outperformed average sales growth 
across all the group’s product categories in 2011 we will apply category 
management principles to this eclectic mix of product with the expecta
tion of even greater sales growth
timber certif ication
timber purchased by value 
2005 data excludes wickes figures
100
50
0
fsc forest stewardship council
ocs other certified schemes
36 49
24
34
48 54 58 63 90
2005 2006 2008 2009 2007 2010 2011
fsc 
and 
ocs
target
28
26
26
25 41
 
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environment repor t 
waste services
we are already providing a number of waste services to our customers 
most notably in pallet repatriation and waste brokering by 2012 we see 
waste services providing a significant revenue stream for us as customers 
increasingly look to lower their costs constrain vehicle movements to 
site and comply with site waste management plans in 2011 we will be 
expanding the number and complexity of joint take back trials with our 
customers and looking to launch a full service before the end of the year
in some waste categories such as batteries and electrical and 
electronic equipment we have an obligation to either take back our 
customers’ waste or provide waste disposal advice towards the end of 
2010 the regulator asked us to improve the availability of advice for the 
disposal of electrical and electronic items and will be checking to see that 
we have done this in early 2011
packaging
with close to a quarter of a million active individual items for sale it is 
important for us to prioritise packaging reduction activity approximately 
two thirds of our merchanting product range and a third of our wickes 
product range is currently sold without any primary packaging save 
perhaps for a returnable pallet some of our supplier partners are looking 
to remove packaging from more of their products we are improving the 
cycle of recovering pallets from many customers and getting them back 
into circulation in 2011 we plan to incentivise branches to collect more 
pallets including damages and to encourage suppliers to reuse more 
repatriated pallets we believe that good pallet repatriation could reduce 
the amount of packaging we leave with the customer on a per million 
pound of adjusted sales basis by as much as 10 and contribute half of 
the reduction we are targeting in this measure
measuring progress on making packaging reductions is complicated 
by poor baseline data and our first priority has been to establish a truer 
baseline from which to judge improvements we do not yet feel that we 
have had enough data from suppliers to be able to retrospectively estab
lish a 2008 baseline or to be able to measure our suppliers’ reduction 
activities the inclusion of products unique to bss is likely to mean that 
we will not be in a position to accurately measure packaging reduction 
performance across the expanded group before mid 2012 in the mean 
time we will continue to work with our principal suppliers in identifying 
primary packaging reductions there has been some notable activity in 
2010 with a trial of a reusable cartridge gun system with an 80 reduc
tion in packaging using a sealant pouch we have also trialled the use of 
lower gauge bags for our bagged aggregate products that if rolled out 
would lead to a 5 packaging reduction we have also identified 30 

“
the demand for responsibly sourced products in 2010 
remained strong we were asked to provide certified timber 
for £17 million of sales”
weight reductions that can be achieved in nails and screw packaging
in 2010 we were contacted by a regulator of the essential require
ments for packaging concerned that one of our retail products may be 
over packed the regulator confirmed they were satisfied with the correc
tive actions taken and will not be taking any enforcement action we have 
recorded this as a complaint
responsible sourcing
this is a core element of our environmental vision we continue to 
make measured progress towards our 2011 target and 2013 ambi
tion to purchase only timber and timber products from fully certified or 
controlled sources we estimate that in 2010 we purchased 88 by 
value of timber products from material that came from certified well 
managed or controlled forests joinery flooring and kitchens remain our 
weakest categories where more work is still required in addition we keep 
a watchful eye on global sheet material markets and the availability of 
certain certified sheet materials where we perceive risk to be higher for 
example in 2010 we moved producer country for much of our certified 
hardwood plywood from brazil to south east asia due to lack of supply of 
certified timber we would expect to achieve our target by the end of 2011 
and will be reviewing future targets before the end of the year
whilst we had many conversations with stakeholders over the year 
about responsible sourcing only one person did not agree with our 
approach and wrote to tell us so whilst we are disappointed to receive 
any letters we responded and addressed the concerns being raised
carbon 
our monitoring and targeting of truck idling times continues to deliver 
carbon and financial savings with over 1800 trucks on the road every day 
the savings are appreciable we will use our practice of targeting specific 
behaviours to reduce our costs and carbon emissions from lighting heating 
and electrical appliance consumption in 2011 now that most stores and 
branches have installed the necessary metering equipment
absolute carbon dioxide emissions in 2010 were 159548 tonnes 
when normalised against adjusted turnover this represented 604 
tonnes per million pounds of sales unfortunately this means that as 
predicted last year we have not met our 2010 interim target of a 15 
reduction in intensity from 2005 
the increase in carbon dioxide emissions in 2010 was mainly due 
to an increase in gas consumption for heating during the extreme and 
exceptional temperatures in december 2010  42
 
2038604 proof 2 310311
environment repor t 
we will be looking at all our environmental performance indicators in 
the second half of 2011 in light of the expansion to the group however 
this will not result in a scaling back of ambition in our carbon reduction 
plans and they will at least be equal to the current 20 intensity reduc
tion target we have set ourselves for 2013 
resource efficiency 
waste
in december 2010 we launched the third iteration of our waste back 
haul service from distribution centres to branches and stores we now 
ask our sites to segregate thirteen waste streams we are following up 
the improved back haul service in early 2011 with a downgrading of bin 
capacity at most operating sites waste budgets in 2011 have already 
been reduced in line with the expected savings that will result
by the end of 2010 out of 36765 tonnes of waste produced we 
had recycled or recovered 16905 tonnes when this performance is 
normalised by turnover it represents a 59 reduction from the level of 
waste sent to landfill in 2005 this means we have exceeded our 50 
reduction target three years ahead of time we will announce a new 
reduction target by the end of 2011 following the assessment of bss 
environmental metrics
water
by examining bill payments in 2010 we estimate that we used 112 litres 
of water per million pounds of adjusted turnover our colleague engage
ment activities which started in 2010 suggest that there is an appetite 
and appreciation for water efficiency and we will look to capitalise on 
this in 2011 
pollution prevention 
we called the environment agency twice in 2010 due to spillages threat
ening to enter controlled waters we talked to highway authorities twice 
because of spills on public roads 
there are no ongoing investigations by any environmental regulator 
and we have had no environmental prosecutions in 2010
geoff cooper  
chief executive 
22 february 2011 
was te tonnage
corrected data and oecd sales deflated figures
tonnes waste per £m yard and core sales  
10
20
30
0
landfill recycling
219
10
196
17
180
28
184
31
133
56
90
77
109
2005 2006 2008 2009 2007 2010 2013
excludes sales from direct deliveries
co
2
 emiss ions
corrected data and oecd sales deflated figures 
tonnes co
2
 per £m group sales
50
75
25
0
2006
energy transport
2005 2006 2008 2009 2007
319 326
265 271
278
256
326
276
323
269
2010 2010
337 508
267
2010 co
2
 emissions from tile giant haulage estimated
energy
and
transport
waste to 
landfill
target
target 43
 
2038604 proof 2 310311
health  safety ‘hs’ is a group priority integrated into everything 
we do from the group board to every colleague in every branch store 
warehouse and office our underlying philosophy is that all injuries are 
avoidable however we do not underestimate the challenge of achieving 
this in a group that now includes almost 1800 branches and 20000 
colleagues making in excess of 8 million deliveries per annum we aim 
to be industry leaders in our sector for the reduction and elimination of 
injuries
during 2010 we continued improving our standards with the leaders 
in each of our businesses continuing to own and drive our stay safe 
culture change programme stay safe requires effective leadership 
a focus on the eight key risks in our business and the desire to have 
everyone return home safely at the end of each working day we are 
still in the early stages of our stay safe programme but we continue to 
make considerable progress in achieving our vision of making injuries a 
rare occurrence we are putting considerable emphasis on finding new 
ways to engage the colleagues in our branches to increase their personal 
ownership of stay safe
health  safety performance  
and initiatives
our 2010 hs performance continued the improvements started in 
2009 with further reductions in both the frequency and severity of lost 
time injuries as measured according to industry standards the group 
frequency rate of 97 lost time injuries per million hours worked is an 8 
improvement on the 2009 level whilst the group severity rate of 0156 
days lost per thousand hours worked also shows an 8 improvement 
on the 2009 level despite these overall improvements we recognise 
there is no quick fix to reducing injuries and that this is very much ‘work 
in progress’ to make injuries rare we intend to further reduce both the 
frequency and severity rates over the next five years by continuing our 
focus on highrisk areas and also by targeting the working behaviour of 
our colleagues customers and suppliers 2010 saw the launch of the 
extremely successful wickes’ national delivery service this resulted 
in a significant change in the risk profile of the wickes’ stores and 
increased support was provided to counter this despite this support a 
few colleagues have suffered injuries in the delivery service in 2010 and 
as a result we only managed to slightly improve both the frequency and 
severity rates during the year we intend to continue with the investment 
in training and support for the wickes delivery service with the intention 
to create the benchmark for safe delivery standards 
external enforcement officer inspections of branches continued to 
eho notices
health  safety 
report
for the year ended 31 december 2010
show a favourable improvement in performance and standards with 
numerous complimentary letters received the group received no legal 
notices in 2010
the reductions in 2010 were achieved as a result of numerous initia
tives under the stay safe development programme led personally by 
each business unit management team and supported by the group health 
and safety team the overall theme is one of colleague engagement with 
a focus on improved communication increased buyin from colleagues 
and personal ownership of stay safe with more individual involvement 
several ongoing themes from 2009 were further supported by new initia
tives in 2010 
the stay safe quarterly newsletter is an important tool in the commu
nication campaign it is now incorporated into the group internal maga
zine the bridge and has introduced personal stories written by branch 
colleagues to the circulation of c15000 as well as the usual mix of 
updates on current initiatives or incidents
regular presentations and brief
ings for directors managers and 
all branch colleagues at inhouse 
conferences and meetings on 
topics such as enforcement officer 
formal interview procedures stay 
safe mystery shopper observa
tions updated safe systems safety 
bulletins etc have supported this 
communication strategy
ongoing development and 
updating of training programmes 
including new elearning pack
ages for controlling contractors 
and ‘grabbing’ bulk bags combined with online quizzes to test learning 
following internal briefings has maintained the consistent approach to 
communicating with our colleagues stay safe is also an integral part of 
all driver continuing professional competence ‘cpc’ training
‘keep your feet on the ground’ the initiative introduced at the end of 
2009 has gathered momentum during the year and is a great example 
of involving colleagues and developing their own ideas to increase their 
  2006 2007 2008 2009 2010
  no no no no no
 prohibition 7 8   
 improvement 29 9 8 4  44
 
2038604 proof 2 310311
h eal th  s afe ty r epor t
personal commitment to the stay safe programme this is centred around 
basic vehicle loading and unloading techniques designed to minimise or 
remove the need for the driver to access the vehicle bed the simple 
principles behind ‘keep your feet on the ground’ like many of the best 
ideas were suggestions from our own drivers
 continuing this theme following suggestions from our own drivers 
detailed testing of the lorry mounted crane ‘grab’ and the bulk bags used 
for all our loose aggregates has resulted in a new approach to unloading 
bulk bags at the customer site in 2011 as part of the ‘keep your feet on 
the ground’ initiative we are investing in modifications to every crane 
‘grab’ so that it can be safely used to actually grab the bulk bag and 
therefore remove the need to climb onto the vehicle bed to attach the bag 
to it to support this stay safe programme of modifying over 1000 crane 
‘grabs’ we have produced a short dvd and online quiz to supplement 
the safe working procedures for our drivers this initiative alone should 
more than halve the number of times the driver is expected to climb up 
onto the vehicle bed
the stay safe communication board and quarterly branch committee 
meetings have continued to provide a simple structure to support this 
twoway flow of information updating of risk assessments and discus
sion of local issues
to further maintain the momentum of the stay safe programme we 
have developed a bespoke training programme for all operational direc
tors and key senior managers in support functions based around the 
institution of occupational safety and health ‘iosh’ managing safely 
programme but with additional significant elements added including 
behavioural psychology and safety leadership this has proven successful 
in exploring different personal strategies for achieving culture change 
and is currently being considered as an option to support the stay safe 
journey for all branch managers
all businesses devel
oped their own personal 
approach to driving the stay 
safe programme in 2010 
an example of one approach 
being the ccf ‘line in 
the sand’ engagement 
programme the ccf board 
engaged with all branches 
and colleagues to develop the model which included closing the branch 
for an afternoon to hold team meetings to discuss the way forward
group supply chain has added an additional dedicated health and 
safety advisor to the team who is assisting in developing hs initiatives 
los t time injury  
frequency rate 
lost time injuries per million  
man hours
merchanting
15
10
5
0
2008 2009 2010
125 116 109
retail
15
10
5
0
2008 2009 2010
11 72 72
group
15
10
5
0
2008 2009 2010
12 106 97
los t time injury  
severity rate 
lost time injuries per million 
 man hours

“
the simple principles behind ‘keep your feet on the ground’ like 
many of the best ideas were suggestions from our own drivers”
merchanting
03
02
01
0
024 019 018
2008 2009 2010
group
03
02
01
0
024 017 0156
2008 2009 2010
retail
03
02
01
0
2008 2009 2010
02 012 011 45
 
2038604 proof 2 310311
h eal th  s afe ty r epor t
to suit supply chain’s specific requirements these include their own 
interpretation of ‘keep your feet on the ground’ using supply chain 
expertise to assist and develop branch unloading procedures and 
tackling specific supply chain issues such as unloading the ship
ping containers now regularly received as part of the global sourcing 
expansion 
these initiatives and many others across the individual businesses 
are increasing the personal ownership of stay safe and resulting in the 
increasing engagement of colleagues this has also been recognised 
in 2010 by two individual training awards stay safe was commended 
by the national training awards and also by the iosh training awards
group plc and group trading board stay 
safe committees
both established committees continue to drive and oversee the ongoing 
stay safe journey following the format established over the last few 
years further details of their composition and terms of reference are 
available on the investor centre section of the company website
andrew simon  
chairman plc board health and safety committee 
22 february 2011
scott richardson sales assistant  
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directors
chairman
robert walker aged 66 was appointed as a nonexecutive director in september 2009 and succeeded tim stevenson as 
chairman after the agm on 17 may 2010 he is chairman of americana international holdings ltd and a nonexecutive director 
of tate  lyle plc he has previously been chairman of w h smith plc and williams lea group ltd and chief executive of severn 
trent plc and held a number of senior posts with pepsi co inc he has also been a nonexecutive director of baa plc signet 
group plc thomson travel group plc british car auctions and wolseley plc he is chairman of the nominations committee and 
a member of the remuneration and health and safety committees 
chief executive
geoff cooper aged 56 joined the company in february 2005 and was appointed chief executive on 1 march 2005 he is a 
chartered management accountant and worked in management consultancy before joining gateway now somerfield plc as 
finance director in 1990 in 1994 he became finance director of unichem plc subsequently alliance unichem plc which later 
became part of alliance boots plc where he was appointed deputy chief executive in 2001 he is nonexecutive chairman of 
dunelm group plc he is chairman of the executive committee
finance director
paul hampden smith aged 50 is a chartered accountant 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 he is a nonexecutive director of redrow plc
chief operating officer
john carter aged 49 joined sandell perkins as a management trainee in 1978 he held a number of regional management 
positions before being appointed managing director operations in 1996 and a director of travis perkins plc in july 2001 he 
became chief operating officer in february 2005 and is a member of the health and safety committee
geoff cooper paul hampden smith john carter robert walker
46 47
 
2038604 proof 2 310311
nonexecutive directors
chris bunker aged 64 was appointed as a nonexecutive director in 2004 he is a chartered management accountant and 
was finance director of thames water plc from 2000 until march 2004 he was previously finance director of tarmac plc and 
westland group plc he is a nonexecutive director of d s smith plc and formerly was a nonexecutive director of mowlem plc 
baltimore technologies plc and xansa plc he is the senior independent director and chairman of the audit committee and a 
member of the nominations and remuneration committees
john coleman aged 58 was appointed as a nonexecutive director in 2005 he is a chartered management accountant and 
chairman of aga rangemaster group plc and holiday break plc he was chief executive of house of fraser plc from 1996 
to 2006 and previously chief executive of texas homecare and of a number of businesses within burton group plc he is a 
member of the remuneration audit and nominations committees
philip jansen aged 44 was appointed as a nonexecutive director in april 2009 he is group chief executive of brakes group 
he has previously been group chief operating officer and chief executive of europe for sodexo chief operating officer of 
mytravel plc and managing director consumer division of telewest communications plc he was also a nonexecutive director 
of the professional cricketers’ association he has also held senior positions with procter  gamble and dunlop slazenger group 
he is a member of the audit committee 
andrew simon obe aged 65 was appointed as a nonexecutive director in 2006 he is a nonexecutive director of finning 
international inc canada management consulting group plc sgl carbon se germany exova group plc icon infrastructure 
management limited guernsey and british car auctions he was previously deputy chairman of dalkia plc chairman and  or 
chief executive of evode group plc and has also held nonexecutive directorships with severn trent plc ibstock plc laporte 
plc associated british ports holdings plc and brake bros holdings ltd he is chairman of the remuneration and health and 
safety committees
john coleman philip jansen andrew simon obe chris bunker
d ire ct ors  
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the company has not produced a separate corporate responsibility 
statement in the report and accounts since it believes these matters 
are sufficiently important to receive the personal attention of individual 
directors rather than risking less focus through the exercise of collective 
responsibility instead full details of those areas normally covered by such 
a report are contained either in the reports of the directors responsible for 
such matters or in a separate report as explained below
environment environment report on pages 37 to 42
health  safety  health  safety report on pages 43 to 45
supply chain  chief operating officer’s review of the year
employees  chief operating officer’s review of the year
community relations  chief executive’s review of the year
the board takes into account environmental social and governance 
matters in its conduct of the company’s business the board believes 
that it has adequate information to identify and assess the major environ
mental social and governance risks and as part of the system of internal 
control receives reports on the risks associated with these matters the 
board has received briefings on such matters during 2010
corporate 
responsibility  
statement
for the year ended 31 december 2010
committees and 
professional 
advisers
secretary  
a s pike
audit committee  
c j bunker chairman j coleman p  jansen
remuneration committee  
a h simon chairman c j bunker  
j coleman r walker
nominations committee  
r walker chairman c j bunker j coleman
health and safety committee  
a h simon chairman j p  carter r walker
executive committee  
g i cooper chief executive and committee chairman  
j p  carter chief operating officer  
p  n hampden smith finance director  
n g bell category managing director  
j bird managing director wickes  
a j davidson chairman specialist merchanting  
c kavanagh group hr director  
m r meech group property director  
j mescall chairman general merchanting  
a s pike company secretary  lawyer  
r d proctor supply chain director
investment bankersadvisors  
hsbc bank plc nomura international plc
corporate broker  
citibank credit suisse
bankers  
the royal bank of scotland plc barclays bank plc
solicitors 
slaughter and may london linklaters llp  london   
clifford chance llp  london hewitsons llp  northampton
auditors  
deloitte llp  london
registrars  
capita registrars huddersfield
48 49
 
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s tatement of principal risk s and uncer tainties
statement of 
principal risks  
and uncertainties
for the year ended 31 december 2010
a number of factors affect the operating results financial condition and 
prospects of each of the businesses in the travis perkins group this section 
describes risk factors considered by the directors to be material however 
these should not be regarded as a complete and comprehensive statement of 
all potential risks and uncertainties additional risks and uncertainties that are 
not presently known to the directors or which they currently deem immaterial 
may also have an adverse effect on the group’s operating results financial 
condition or prospects 
financial risks
going concern
a review of the group’s business activities together with the factors likely to 
affect its future development performance and position are set out on pages 
14 to 24 of the chief executive’s review of the year the financial position of 
the group its cash flows liquidity position and borrowing facilities are shown 
in the balance sheet cash flow statement and accompanying notes in the 
financial statements further information concerning the group’s objectives 
policies and processes for managing its capital its financial risk management 
objectives details of its financial instruments and hedging activities and its 
exposures to credit risk and liquidity risk can be found below 
after reviewing the group’s forecasts and making other enquiries the 
directors have formed a judgement at the time of approving the financial 
statements that there is a reasonable expectation that the group and the 
company 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
in arriving at their opinion the directors considered the
●
  group’s cash forecast and revenue projections
●
  reasonably possible changes in trading performance
●
   committed facilities available to the group to early 2013 and covenants 
thereon
●
  group’s robust policy towards liquidity and cash flow management and
●
   group’s abilities to manage its business risks successfully during periods of 
uncertain economic outlook and challenging macro economic conditions
financial risk management 
financial risk management is an integral part of the way the group is 
managed in the course of its business the group is exposed primarily to 
liquidity risk interest rate risk foreign exchange risk credit risk capital risk 
and tax risk the overall aim of the group’s financial risk management policies 
is to minimise potential adverse effects on financial performance and net 
assets the group manages the principal financial risks within policies and 
operating parameters approved by the board of directors and does not enter 
into speculative transactions
treasury activities which fall under the daytoday responsibility of the 
finance director are managed centrally under a framework of policies and 
procedures approved by and monitored by the board the policies in respect of 
interest and currency hedging the investment of surplus funds and the quality 
and acceptability of financial counterparties were reviewed and reapproved 
by the board during the year
the treasury department is not a profit centre its objectives are to protect 
the assets of the group and to identify and then manage financial risk in 
applying these policies the group will utilise derivative instruments but only 
for risk management purposes 
the board receives monthly reports on cash flows debt levels and covenant 
compliance with comparisons to budgets and forecasts in addition all derivative 
related activity is reported to the board at the immediate next board meeting as 
described in the corporate governance report on page 55 the board receives 
regular reports on specific areas of risk as part of these risk reviews papers are 
presented on areas such as budgeting and planning debt strategy including 
derivative policy and banking relations and working capital control 
liquidity and net debt note 25
liquidity risk
the group’s policy on liquidity risk is to ensure that sufficient cash is available 
to fund ongoing operations the board manages exposure to liquidity risk 
by maintaining adequate facilities to meet the future needs of the business 
those needs are determined by continuously monitoring forecast and actual 
cash flows taking into account the maturity of financial assets and liabilities 
included in the balance sheet 
the group’s principal borrowing facilities are provided by a group of core 
relationship banks in the form of a term loan and a revolving credit facility 
and by us institutions in the form of us denominated notes the quantum of 
committed borrowing facilities available to the group is reviewed regularly and 
is designed to comfortably exceed forecast peak gross debt levels
liquidity management
the group’s treasury team are responsible for monitoring the group’s short 
and medium term liquidity requirements using a combination of annual 
budgets which have been analysed on a daily basis using historical trends 
quarterly trading and cash flow reforecasts and shortterm forecasts adjusted 
for actual events as they occur they are then charged with drawing down 
sufficient funds to meet those needs whilst minimising borrowing costs and 
reducing the incidences of investing surplus funds 
medium term borrowing and hedging requirements up to 5 years are 
determined from the group’s annual budget and threeyear plan which are 
prepared to show monthly trading cash flows and debt requirements for the 
entire period and are updated and approved by the board each year
to ensure the board takes preemptive action where necessary the group 
reforecasts profits and cash flows on a quarterly basis 
facilities
the group has a £1bn syndicated credit facility provided by 14 banks by 31   
2038604 proof 2 310311
50
s tatement of principal risk s and uncer tainties
us denominated notes have fixed rates of interest
the group’s hedging policy is to generate its preferred interest rate profile 
and so manage its exposure to interest rate fluctuations through the use of 
interest rate derivatives currently the policy is to maintain between 33 and 
75 of drawn borrowings at fixed interest rates
the group has entered into a number of interest rate derivatives designed 
to protect it from fluctuating interest and exchange rates on its borrowings at 
the yearend the group had ten interest rate derivatives fixing interest rates 
on approximately 65 of the group’s cleared debt the maturity of the group’s 
derivatives is as follows
 term maturity notional value
vanilla interest rate swaps amortising may 2011 £300m
vanilla interest rate swaps bullet may 2011 £100m
cancellable swap bullet october 2013 £50m
currency risk 
having taken out
●
   3 cross currency swaps and 4 forward contracts to protect it from exchange 
rate fluctuations in respect of its 400m fixed rate guaranteed unsecured 
notes
●
   3 cross currency swaps to protect it from currency fluctuations on the bss 
125m fixed rate guaranteed unsecured notes
the group is not exposed to significant foreign exchange risk 
whilst the majority of purchases of goods and services are invoiced in 
sterling goods acquired from overseas either directly from manufacturers 
or through uk based distributors continue to increase overseas originated 
purchases currently approximate to 4 of group purchases and so adverse 
movements in sterling could to the extent they cannot be passed on to 
customers affect profitability
the group settles its currency related trading obligations using a 
combination of currency purchased at spot rates and currency bought in 
advance on forward contracts its policy is to purchase forward contracts 
for between 30 and 70 of its anticipated requirements twelve months 
forward at 31 december 2010 the nominal value of currency contracts most 
of which were us denominated was 94m and €8m at 31 december 2010 
based upon forecast currency requirements for 2011 a us10c change in 
the exchange rate would impact costs before any corresponding selling price 
amendment by approximately £3m 
credit risk 
financing
credit risk refers to the risk that a counterparty will default on its contracted 
obligations resulting in loss to the group it arises on financial instruments 
such as trade receivables shortterm bank deposits banking facilities interest 
rate derivatives and foreign currency hedging transactions to reduce the risk 
december 2010 repayments and the debt buy back referred to on page 33 
had reduced the facility to £846m of which £371m is in the form of a fully 
drawn amortising term loan the remainder being a revolving credit facility 
which can be drawn down as required in addition the group had access to 
£70m of uncommitted overdraft facilities at 31 december 2010 
in early 2006 the group issued 400m of fixed rate guaranteed unsecured 
notes the ‘notes’ with a broad range of us financial institutions the debt 
comprises 200m of notes repayable in 2013 and the remainder in 2016 
at inception the fixed interest rate net proceeds were swapped into sterling 
6month libor determined variable rate debt 
on 14 december 2010 the group adopted 125m of fixed rate guaranteed 
unsecured notes as part of the bss acquisition whilst 75m of the notes 
are due to be repaid in 2013 and 50m in 2016 the group is currently 
determining the future of the notes
liquidity headroom is expected to remain high with the term loan due to be 
repaid in four £35m tranches in april and october each year with the balance 
falling due in april 2013 the revolving credit facility is available to the group 
until april 2013 
tranches of the syndicated facility can be drawn down for weekly monthly 
three monthly and six monthly terms with the actual duration of draw downs 
being dependent upon management’s interest rate expectations for all of 
2010 due to the high differential between 6 month libor and weekly and 
monthly libor the group has drawn funds on a weekly or monthly basis
covenant compliance
the group’s borrowings are subject to covenants set by the lenders covenant 
compliance is measured semiannually using financial results prepared under 
ifrs extant at 31 december 2007 
the key financial covenants are the ratio of net debt to earnings before 
interest tax depreciation and amortisation ‘ebitda’ which must be less than 
35 times and the ratio of earnings before interest tax and amortisation 
‘ebita’ to net interest which must be above 35 times at 31 december 2010 
the group achieved a net debt to ebitda ratio of 19x note 38 and interest 
cover of 189x note 10
in addition to these financial covenants the group’s borrowing agreements 
include general covenants and potential events of default at the date of this 
report there had been no breaches of the financial covenants and the group 
had complied in all other respects with the terms of its borrowing agreements
interest rate and currency derivatives note 26
the group’s policy is to enter into derivative contracts only with members of its 
uk banking facility syndicate provided such counterparties meet the minimum 
rating set out in the board approved derivative policy
interest rate risk 
one of the principal risks facing the group is an exposure to interest rate 
fluctuations the group has borrowed in sterling at floating rates whilst its 
statement of 
principal risks  
and uncertainties
for the year ended 31 december 2010 51
 
2038604 proof 2 310311
s tatement of principal risk s and uncer tainties
of loss arising from counterparty default the group has a policy of dealing 
with creditworthy counterparties the group has policies and procedures to 
ensure that customers have an appropriate credit history and that account 
customers are given credit limits appropriate to their circumstances which 
are regularly monitored 
the group does not have any significant credit risk exposure to any single 
counterparty or any group of counterparties having similar characteristics 
other than banks providing banking facilities interest rate derivatives and 
cross currency swaps the group defines counterparties as having similar 
characteristics if they are connected entities the credit risk in liquid funds and 
derivative financial instruments is limited because the counterparties used are 
banks with high creditratings assigned by international creditrating agencies
at the yearend the group had open currency hedging contracts with four 
banks open interest rate derivative contracts with 6 banks and had 14 banks 
within its banking syndicate there were 18 companies holding the travis 
perkins us denominated notes of which the largest held 21 by value 
11 held the bss us denominated notes of which the largest held 15 by 
value all currency hedging contracts and swaps are held with members of 
the banking syndicate 
on 22 february 2010 the group’s banking counterparties had ratings of
   notional notional notional
  amount of value of  value of cross value of
 number uk bank interest rate currency currency
rating of banks facilities derivatives swaps forwards
 no £m £m m £m
aa to aa 7 £398m £220m £87m £45m
a to a 4 £378m £230m £139m £10m
below a 2 £77m  £14m £18m
not rated 1 £4m   
customer credit 
within the group’s trade businesses one of the key aspects of service is 
the provision of credit to customers with the group carrying the associated 
credit risk 
trade receivables consist of a large number of customers none of which 
represents more than 1 of sales spread across diverse industries and 
geographical areas however the nature of the industry is such that there is a 
risk that some of these customers will be unable to pay outstanding balances 
ongoing evaluation of the financial condition of accounts receivable and 
reviews of the total credit exposure to all customers is performed monthly 
using external credit risk services where necessary increased credit levels 
are approved by both operational and financial management with personal 
guarantees being obtained where appropriate before credit is advanced 
whilst daytoday credit control is the responsibility of the centrally based 
teams the group also operates an inhouse debt recovery team headed by a 
qualified solicitor that is responsible for recovering debt that remains unpaid 
the group does not have credit insurance 
during the recession of 199091 the group experienced bad debt levels 
of up to 135 of credit sales over the past 10 years the bad debt charge 
has averaged below 05 the charge for 2010 was 059 of credit sales 
2009 08 
debtor days at 31 december 2010 were 55 days 2009 54 days an 
increase in one debtor day at 31 december would have reduced cash flow 
by approximately £7m
capital risk
the group manages its capital risk by ensuring it has a capital structure 
appropriate to the ongoing needs of the business that ensures it remains 
within the covenant limits that apply to its banking arrangements the capital 
structure of the group consists of debt which includes the borrowings 
disclosed in note 25 cash and cash equivalents and equity attributable to 
equity holders of the parent comprising issued capital reserves and retained 
earnings as disclosed in notes 22 to 24 
the capital structure is formally reviewed by the board as part of its annual 
strategy review but it is kept under review by the group finance director 
throughout the year as necessary the company will rebalance its capital 
structure through raising or repaying debt issuing equity or paying dividends
the group’s capital structure is aimed at balancing equity and debt in a 
way which comfortably maintains the group’s investment grade status in the 
view of its lenders whilst optimising the efficiency of its finance costs given 
that the cost of debt is below the cost of equity this equates to a maximum 
net debtebitda target of 25 times post any acquisition against 35 times 
bank covenant with the aim of paying down debt down to achieve a 1 times 
ratio for the purposes of this calculation and of setting the target any pension 
related debt bank debt and the amount of any operating lease commitments 
are included see note 31
our current preferred sources of debt financing include bank debt and us 
private placement notes we are regularly reviewing the sources of debt with 
the aim of maintaining both diversified sources and diversified maturities
tax risk
the group seeks to efficiently manage its tax affairs whilst at the same time 
complying with the relevant laws and disclosure obligations placed upon it 
however the complexity of tax legislation means that there will always be an 
element of uncertainty when determining its tax liabilities
to minimise compliance risk the group utilises qualified inhouse expertise 
and takes external advice when making judgements about the amount of tax 
to be paid and the level of provisions required
future tax charges and payments could be affected by changes in legislation 
and accounting standards beyond the control of the group
pension risk
the risks in this area relate to the potential for contributions required to 
statement of 
principal risks  
and uncertainties
for the year ended 31 december 2010  
2038604 proof 2 310311
52
s tatement of principal risk s and uncer tainties
meet the benefits promised in the final salary schemes rising to a level that 
restricts other corporate activity the schemes’ trustees and the group obtain 
independent actuarial advice and formal valuations are carried out at least 
every three years the trustees receive reports on the investment performance 
quarterly the travis perkins’ final salary scheme was closed to all new 
members in april 2006 and in 2009 pensionable salary inflation was capped 
at 3 per annum the three bss final salary pension schemes were closed to 
new members between october 2001 and october 2003
the combined accounting deficit at 31 december 2010 on all group 
schemes is £28m the group currently has arrangements in place to eliminate 
the funding deficit on the travis perkins defined benefit scheme over a period 
of 8 years and on the bss defined benefit schemes by 2019 any deterioration 
in the schemes’ funding position could impact the group’s liquidity
insurance risk
the group has been substantially selfinsured since 2001 the nature of 
insurance claims is that they frequently take many years to fully crystalise 
therefore the directors have to estimate the value of provisions to hold in 
the balance sheet in respect of historic claims under the guidance of the 
group’s insurance advisors the value of incurred claims is estimated using the 
generalised cape cod method 
the provision is determined by deducting the value of claims settled to 
date from the estimated level of claims incurred whilst the generalised 
cape cod method is an insurance industry standard methodology it relies 
on historic trends to determine the level of expected claims to the extent 
that the estimates are inaccurate they may be underprovided in respect 
of claims which could result in an adverse effect on the group’s results of 
operations and on cash flows which could adversely affect future prospects 
or financial condition
other operational risks
market conditions and competitive pressures 
the group’s products are sold to tradesmen and retail customers for a 
broad range of end uses in the built environment the performance of the 
market is affected by general economic conditions and a number of specific 
drivers of construction and diy activity including housing transactions net 
disposable income house price inflation consumer confidence interest 
rates and unemployment the board conducts an annual review of strategy 
which includes an assessment of likely competitor activity market forecasts 
and possible future trends in products channels of distribution and customer 
behaviour significant events including those in the supply chain that may 
affect the group are monitored by the executive committee and reported to 
the board monthly by the group chief executive 
market trends particularly in respect of multichannel offerings could 
also affect the group’s performance if they continue to move towards greater 
internet purchasing so making traditional branch based operations less 
relevant in addition competitor activity could affect group performance these 
are tracked on an ongoing basis and reported to the board each month
product availability and product prices 
security of supply of products and product quality are monitored by product 
category directors in the trade and retail businesses supplier financial strength 
capacity availability product quality and service levels are monitored on a 
continuous basis an annual risk assessment with recovery plans is prepared 
for the major suppliers across the group the group is not significantly 
exposed to one supplier or product type with no supplier accounting for more 
than 4 of total goods purchased in 2010 an established qa process is in 
place throughout the business
the ability to pass on price increases to customers is affected by competitor 
activity and the economic climate an inability to raise selling prices could 
reduce margins
the expansion of direct sourcing increases the group’s reliance on 
overseas factories and so exposes the group to greater risk due to both 
potential lack of availability and from product quality which could affect the 
reputation of the group’s brands the market price of products distributed by 
the group particularly commodity products can vary significantly and affect 
operating results particularly those sourced from overseas which also may 
be impacted by currency fluctuations to mitigate these potential risks the 
group’s businesses actively take steps to protect themselves from anticipated 
price rises and currency fluctuations invest in quality assurance and maintain 
sensible stock levels
any restrictions on third party credit insurance available to suppliers could 
result in them reducing their own credit exposure to the group if this were to 
occur it could adversely affect the group’s working capital and therefore its 
debt levels
information technology and business continuity 
the operations of the group depend on a wide range of it systems operating 
efficiently an it strategy committee reviews the strategic demands of the 
business resources available to it performance levels of the key systems and 
systems security and prioritises development work maintenance is undertaken 
on an ongoing basis to ensure the resilience of group systems and escalation 
procedures are in place to resolve any performance issues at an early stage 
our two data centres mirror each other with data processing switched from 
one to the other on a regular basis an it disaster recovery plan exists and is 
tested regularly together with the business continuity plan with arrangements 
in place for alternative data sites for both trade and retail businesses offsite 
backup routines are in place
the group distributes products from 27 central distribution centres in great 
britain the loss of any single warehouse through fire or other major incident 
could have a material effect on the availability of product in the trade and retail 
outlets each warehouse has fire detection and alarm systems and a business 
continuity plan
statement of 
principal risks  
and uncertainties
for the year ended 31 december 2010 53
 
2038604 proof 2 310311
s tatement of principal risk s and uncer tainties
human resources 
the ability to recruit and retain staff at all levels of the group is an important 
driver of our overall performance salaries and other benefits are benchmarked 
annually to ensure that the group remains competitive a recruitment toolkit is 
available for both trade and retail outlets a widerange of training programmes 
are in place to encourage staff development and management development 
programmes are used to assist those identified for more senior positions the 
group human resources director monitors staff turnover by job type and 
reports to the board annually succession plans are established for the most 
senior positions within the group and these are reviewed annually 
leased property
the majority of the group’s branch portfolios are held through leasehold 
interests which are generally subject to periodic rent reviews lease expiries 
and renegotiations as a result the group is susceptible to changes in the 
property rental market such as increases in market rents which are cost 
increases to the group that they may not be able to pass on to customers 
in the form of higher prices any such rental increases may negatively affect 
the group’s margins and could have an adverse effect on the group’s future 
prospects financial condition or results of operations
the group has assigned a limited number of leases on surplus properties in 
the course of its business and the group has acquired businesses which also 
have assigned leases prior to acquisition in certain circumstances the group 
may be contingently liable for performance of leasehold and other obligations 
relating to the assigned leases particularly in the current market environment 
there is a risk of such liability crystallising in the event of the insolvency of or 
other default by an entity or entities to which a number of the leases on those 
properties were assigned 
acquisitions and other expansion
growth by acquisition continues to be an important part of the longterm 
strategy of the group significant risk can arise from acquisitions in terms of 
the initial valuation the integration programme and the ongoing management 
of the acquisition detailed internal analysis of the market position of major 
acquisition targets is undertaken and valuations are completed using 
discounted cash flow financial models independent advisors are used to 
comment on the strategic implications and the assumptions in valuation 
models for larger acquisitions a rolling programme of post acquisition audits 
is completed and reviewed by the board each year
legislation
the group is affected both positively and negatively by the legislative 
environment within which it operates planning and building legislation 
affects its customers and consequently the group whilst health and safety 
employment environmental and competition laws together with the rules of 
the financial services authority and the listing rules influence its dayto
day operations
the group has an inhouse legal team headed by the group company 
secretary which together with health and safety and environmental experts 
monitor changes in legislation that affect the group and enable it to take timely 
action to ensure any impacts are reduced
reputation and litigation
the group is potentially exposed to litigation including that related to product 
liability asbestos and environmental pollution or contamination where this 
relates to a supplier or the actions of third parties the group would seek to 
pass such liability back to them but were this not possible it would seek to rely 
on its insurance policies
some group companies up to the 1970s included asbestosbased products 
in their product ranges on occasions when handling these products employees 
may have been exposed to the potentially harmful effects of asbestos with the 
result that their health may have suffered occasionally the group receives 
a claim for damages from a former employee or from his or her estate in 
respect of their illhealth for the majority of cases where liability is proven 
against the group the claim is paid by the insurers of the employing company 
at the time the exposure to asbestos occurred however occasionally where 
due to the passage of time and the lack of records particularly for companies 
subsequently acquired by the group it is not possible to identify the insurer 
the group may be directly liable for settling the claim
historically the level of such claims has not been material either individually 
or in aggregate and the board currently has no reason to believe that the 
situation will change however if there was a significant increase in the 
number of such claims for which insurance cover could not be traced the 
future prospects financial condition or results of operations of the group could 
be adversely affected
the group’s property portfolio includes properties of various ages and a 
number of their properties were constructed in areas that have historically 
been the subject of commercial or industrial use it is possible that onsite 
pollution or contamination could have been caused by any such previous uses 
or in limited circumstances by current uses for which the group could be held 
liable although the board is not aware of any relevant liability claims or actions 
a claim or regulatory action against the group pollution or contamination could 
have a material adverse effect on the group
any litigation carries an inherent risk of an adverse outcome any successful 
product liability asbestos or environmental claim could have a material 
adverse effect on the group’s future prospects financial condition or results of 
operations in addition even if the group successfully defends any such claim 
claims of this nature could have a negative impact on customer confidence in 
the group’s products and on the group itself
environmental
failure to operate within the highest environmental standards may reduce the 
group’s profitability if such action causes it to come into conflict with legislative 
requirements furthermore with heightened environmental awareness 
statement of 
principal risks  
and uncertainties
for the year ended 31 december 2010  
2038604 proof 2 310311
54
s tatement of principal risk s and uncer tainties
companies that fail to meet environmental standards may find their ability to 
trade or gain access to capital markets reduced
the group has accreditation for its environmental management system to 
the iso 14001 standard further details of the group’s environmental policies 
and performance are given in the environmental report on pages 37 to 42 
however to mitigate the potential environmental risks the group undertakes 
comprehensive reviews across all its businesses involving independent 
external advisers external verification of environmental performance is 
undertaken and repeated on an annual basis
government pressures to reduce carbon emissions may result in significant 
changes to the new build and rmi building market regulations may drive 
substantial changes to the products that are specified by customers which 
could affect the builders merchanting industry if those customers move 
towards more direct sourcing from the manufacturers or installers
climate
the building materials industry provides customers with products used largely 
in construction and rmi these activities are typically undertaken less during 
inclement weather and as a result the group’s operations are characterised 
by weatheraffected fluctuations in demand prolonged periods of poor 
weather can adversely affect the group’s future prospects financial condition 
and results of operations
 
statement of 
principal risks  
and uncertainties
for the year ended 31 december 2010 55
 
2038604 proof 2 310311
c orporate governance
combined code
the london stock exchange issued the combined code on corporate 
governance ‘the code’ in 1998 and it was revised most recently in june 
2008 section 1 of the code is applicable to companies a statement explaining 
how the company has applied the principles and the extent to which it has 
complied with the provisions of the code appears below the company will 
report on its compliance with the new uk corporate governance code in its 
2011 annual report 
the code contains fourteen main 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 the chairman three executive and four nonexecutive directors 
robert walker having succeeded tim stevenson on 17 may 2010 is 
chairman and geoff cooper is chief executive chris bunker is the senior 
independent director john coleman philip jansen and andrew simon are 
also independent nonexecutive directors appointments of new directors are 
made by the board on the recommendation of the nominations committee 
all directors will submit themselves for reelection at least every three years 
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 policy on 
corporate governance matters 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 strategy 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 has approved a written statement of the division of key 
responsibilities between the chairman and the chief executive
the chairman leads the board ensuring that each director is able to make 
an effective contribution he also monitors the information provided to the 
board to ensure it is sufficient timely and clear and from time to time the 
board reviews the adequacy of this information
the board held sixteen meetings during 2010 five of which were by 
conference telephone call one meeting dealt with consideration of the 
company’s longterm strategy and seven meetings either included visits 
to parts of the company’s operations or included presentations by senior 
executives on their areas of responsibility individual visits to operational 
sites by nonexecutive directors also took place in addition to the regular 
board meetings key financial information is circulated to directors outside 
of meetings the chairman has regular direct contact with the executive 
directors and keeps the nonexecutive directors informed of material 
developments between board meetings the chairman held two meetings 
during the year with all the nonexecutive directors without the executive 
directors being present
all directors have direct access to the company secretary and may take 
independent professional advice in the furtherance of their duties if necessary 
the company maintains directors  officers’ insurance in respect of the risk 
of claims against directors
the board has an induction process for new directors which is facilitated 
by the company secretary the chairman ensures that all directors receive 
appropriate training on appointment and then subsequently as required 
taking into account the need to update their skills and their knowledge of 
the company’s business they are also regularly provided with information 
on forthcoming legal and regulatory changes and corporate governance 
developments and briefings on the key risks facing the company including 
those identified in the corporate responsibility statement on page 48
the board has established five committees the audit committee the 
remuneration committee the nominations committee the health and safety 
committee and the executive committee which operate within defined 
terms of reference which are available on the company’s website or may be 
obtained from the company secretary the minutes of committee meetings 
are available to all the directors the reports of the audit committee health  
safety committee remuneration committee and nominations committee are 
on pages 58 to 60 43 to 45 61 to 71 and 72 respectively 
the executive committee’s members are listed on page 48 other 
executives are invited to attend from time to time in relation to specific matters 
the principal purpose of the committee is to assist the executive directors in 
the performance of their duties in relation in particular to
●
 strategy operational plans policies procedures and budgets
●
 the monitoring of operational and financial performance
●
 the assessment and control of risk
●
 the prioritisation and allocation of resources
corporate 
governance
for the year ended 31 december 2010  
2038604 proof 2 310311
56
c orporate governance
the number of board and committee meetings attended by each director in 
whole or in part during the year was as follows
if a director was unable to attend a meeting of the board or a committee of 
which he is a member the chairman discussed the meeting papers with him 
to obtain his views prior to the meeting
during the year the board undertook an evaluation of its performance and 
the performance of its committees and the individual directors this consisted 
of completion of a questionnaire followed by interviews by the chairman with 
each other director and the company secretary separately these interviews 
formed the basis of a report by the chairman that was the subject of a 
discussion by the board which was satisfied that the process showed that the 
board and its committees worked effectively however it agreed a number of 
measures all aimed at further improving its performance the focus of these 
measures was on
●
  ensuring that there was adequate and timely review of succession planning 
for the board including providing for appropriate diversity among non
executive board members and for management posts below board level
●
  improving the board’s identification and review of high level risks to the 
business
●
  enhancing nonexecutive directors’ knowledge of the group’s businesses 
by arranging for them to ‘mentor’ particular businesses on a rotating basis
a board evaluation process will be carried out in 2011 using the services of 
an external facilitator it is the board’s policy to engage such a facilitator at 
least every 3 years
2 directors’ remuneration 
the remuneration committee consists of the chairman and three 
independent nonexecutive directors and meets at least four times a year its 
responsibilities include remuneration policy a review of the performance of 
executive directors prior to determining their remuneration and the approval 
of incentive arrangements including performance criteria the remuneration 
of the nonexecutive directors is determined by the board as a whole except 
that the remuneration committee makes a recommendation in respect of the 
chairman’s salary no director plays a part in the discussion about his own 
remuneration 
the remuneration report is set out on pages 61 to 71
3 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 reports of the chief executive 
the chief operating officer and finance director set out on pages 14 to 36 
the board uses them together with the chairman’s statement on pages 12 
and 13 to present a full assessment of the company’s position and prospects 
the directors’ responsibilities for the financial statements are described on 
page 77
internal control
the board 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 most cost effective means of 
controlling them the system is designed to manage rather than eliminate 
risk and therefore can only provide reasonable and not absolute assurance 
against material misstatement or loss
the daytoday operation of the system of internal control 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 guidance the board and the executive committee receive regular 
reports on specific areas of risk and the results of internal audit analysis 
if appropriate these reports include recommendations for improvement in 
controls or for the management of those risks measures to integrate risk 
management processes into the group’s operations to extend awareness 
of the importance of risk management and to ensure that recommended 
improvements are implemented are regularly reviewed and refreshed senior 
executives are asked twice a year to confirm the adequacy of internal controls 
in their areas of responsibility identify any control weaknesses and to confirm 
the accuracy and completeness of information given to the directors and to the 
external auditors this confirmatory process will be extended further through 
the management structure in 2011
corporate 
governance
for the year ended 31 december 2010
 retired from the board in may 2010
 number of meetings 16 4 7 1 3 11
 attendances      
 c j bunker 16 4 7 1  
 j p carter 16    3 11
 j coleman 13 4 6 1  
 g i cooper 16 1 7 1  11
 p n hampden smith 16 4 1   11
 p jansen 16 4  1  
 a h simon 14  7 1 3 
 r walker 16 4 7 1 3 
 t e p stevenson 6 1 2 1 1 
plc board
audit
remuneration
nomination
health  safety
exe cutive 57
 
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c orporate governance
the group has systems and procedures in place to manage and control the 
risks associated with financial reporting and the preparation of consolidated 
accounts this includes experienced and qualified personnel preparing the 
consolidation and review by senior management
in conjunction with the audit committee 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 this annual report 
audit committee and auditors 
the report of the audit committee is set out on pages 58 to 60
4 relations with shareholders
the company encourages twoway communication with both its institutional 
and private investors and responds promptly to all enquiries received during 
the year the chairman the senior independent director and the executive 
directors either separately or together attended a number of meetings with 
analysts and with shareholders representing circa 60 of the issued share 
capital the chairman and executive directors report to the board on any 
meetings with shareholders or analysts in addition written reports about the 
company by analysts or brokers are circulated to all directors
as well as sending the annual report to shareholders during the year 
the company published its interim results on its website issued two interim 
management statements two further trading updates and sent a circular to 
shareholders in july 2010 concerning its proposed acquisition of the bss 
group plc 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 each substantive issue is the subject 
of a separate resolution the numbers of proxy votes for and against each 
resolution are announced at the meeting after the voting has taken place and 
are subsequently published on the company’s website
going concern
this matter is dealt with in the statement of principal risks and uncertainties 
on page 49
corporate governance compliance statement
the company is pleased to report that it has complied throughout the year 
ended 31 december 2010 with the provisions set out in section 1 of the code
corporate 
governance
for the year ended 31 december 2010  
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58
aud it c ommittee repor t
audit  
committee 
report 
for the year ended 31 december 2010
role of the audit committee
the audit committee is responsible for
●
  the integrity of the financial statements of the company and any formal 
announcements relating to the company’s financial performance and 
reviewing significant financial reporting judgments contained therein
●
  reviewing the company’s internal financial controls and unless expressly 
addressed by the board itself the company’s internal control and risk 
management systems
●
  monitoring and reviewing the effectiveness of the company’s internal audit 
function
●
  reviewing the audit plans of the external auditors and for monitoring the 
conduct of the audit
●
  reviewing the external auditors’ independence and objectivity and the 
effectiveness of the audit process taking into consideration relevant uk 
professional and regulatory requirements
●
  reviewing the company’s policy on the engagement of the external 
auditors to supply nonaudit services taking into account relevant guidance 
regarding the provision of nonaudit services by an external audit firm
●
  making recommendations to the board for a resolution to be put to the 
shareholders for their approval in general meeting in relation to the 
appointment and remuneration of the external auditors
the audit committee is required to report its findings to the board identifying 
any matters in respect of which it considers that action or improvement is 
needed and make recommendations as to the steps to be taken
the committee’s full terms of reference are available on the company’s 
website or on request to the company secretary
composition of the audit committee
chris bunker was chairman and john coleman and philip jansen were 
members of the committee throughout 2010 all members of the committee 
are considered to be independent the company secretary andrew pike is 
secretary to the committee the board considers that chris bunker has the 
recent and relevant financial experience required by the combined code see 
also the board profiles on pages 46 and 47
meetings and attendance
the committee met four times during 2010 to consider inter alia the annual 
and interim results attendance at the meetings is shown on page 56 the 
chairman of the committee also invited the group chairman the chief 
executive the finance director the chief operating officer the group 
financial controller the group head of business risk and assurance and 
the external auditors to attend the meetings when present the external 
auditors and the group head of business risk and assurance were given the 
opportunity to discuss with the committee any matters which they wished 
to raise without the presence of management in addition during the year 
the committee chairman held a number of meetings with the group head 
of business risk and assurance and with the external auditors all without 
management being present
main activities of the committee  
during the year
at its meeting in february the committee reviewed the annual financial 
statements of the company and received reports from the internal auditors on 
internal control matters and from the external auditors on the conduct of their 
audit their review of accounting policies areas of judgment in the financial 
statements and their comments on statements concerning risk and internal 
control a similar review was undertaken at its july meeting when the interim 
statements were considered at these and its other meetings the committee 
also reviewed
●
  an evaluation of its work carried out as part of the board evaluation process 
referred to on page 56 the chairman of the committee subsequently 
reported to the board on this evaluation
●
  the committee’s terms of reference no changes were recommended to 
the board
●
  any comments received on its 2009 report from institutional investor 
bodies
●
  the effectiveness of the system of internal financial control and the system 
for monitoring and reporting on risks faced by the group
●
  the strategy staffing processes and effectiveness of the internal audit 
department minor changes to the terms of reference of that department 
were recommended to the board
●
  the demands on the group’s it systems and the constraints imposed by 
having different systems in certain parts of the group
●
  the status of actions taken in response to recommendations arising from 
internal and external audit work
●
  the operation of the group’s ‘whistleblowing’ policy
●
  the policy on engagement of the external auditors for nonaudit work as 
referred to below and its policy on the employment of anyone previously 
employed by the external auditor
●
  the plans presented by the external auditors for conduct of the yearend 
audit including terms of engagement fees and letters of representation
●
  the plans for the audit of the bss group companies at the year end it was 
agreed that due to the close proximity of the acquisition to the yearend the 
existing auditor pricewaterhousecoopers would be retained for this work
●
  the effectiveness independence and objectivity of the external auditors 
taking into account written assurances provided by deloitte llp with regard 
to its quality and independence controls and its ethical standards and the 
results of a survey among stakeholders
●
  the group’s accounting policies forthcoming changes to international 
financial reporting standards and other regulatory changes and various  59
 
2038604 proof 2 310311
aud it c ommittee repor t
guidance notes issued by the financial reporting council
●
  the group’s policies and processes for fraud prevention
●
  the group’s tax planning
no matters of material significance were identified by the auditors during the 
year and there were no material auditrelated matters that were discussed 
with investors
two members of the audit committee are also members of the remuneration 
committee the audit committee is satisfied that the group’s compensation 
policies are compatible with a robust control environment and good stewardship 
and also that the committee received sufficient reliable and timely information 
from management to enable it to fulfil its responsibilities
the key areas of risk and sensitivity the major accounting policies and the 
principal assumptions with regard to fair values are described in the report 
and notes to the accounts the audit committee reviewed these during the 
year taking into account relevant external advice and was satisfied that they 
were appropriate
external auditors
the company places great importance on the effectiveness and independence 
of its external auditors and together with them is careful to ensure their 
objectivity is not compromised at its october meeting the auditors presented 
to the committee their plans for the forthcoming audit together with details of 
their proposed fees and how they ensure that their objectivity and independence 
are not compromised these plans reflected a review by the new audit partner 
see below of the methods used to perform each element of the audit
deloitte llp or its predecessor firms a leading international audit 
partnership was first appointed as auditor to group companies more than 
30 years ago there are no contractual restrictions on the group with regard 
to their appointment in accordance with professional standards the partner 
responsible for the audit is changed every 5 years and changed in 2010 
the committee considers that deloitte provide a high quality efficient 
and cost effective audit service accordingly following its february 2011 
meeting the committee recommended to the board that resolutions be put 
to shareholders at the annual general meeting for the reappointment of the 
external auditors and to authorise the directors to fix their remuneration 
it is the role of the committee to ensure compliance with the board’s policy 
in respect of services provided by and fees paid to the auditors audit fees 
which are regularly compared with peer companies by the committee are 
negotiated by the finance director and approved by the audit committee 
the policy in relation to other services that could be provided by the external 
auditors which has been approved by the board can be summarised  
as follows
general principles
there is a presumption against the external auditors providing nonaudit 
services and they should only be selected for such work where its nature 
makes it more timely and cost effective to select advisors who have a good 
understanding of the group or the work is of a particularly confidential or 
specialist nature the external auditors should not provide nonaudit services 
where either the nature of the work or the extent of such services might impair 
their independence or objectivity any assignment to the external auditors of 
nonaudit work with a fee over £25000 requires the approval of the chairman 
of the committee
areas of work 
the policy lists certain nonaudit services where it would be usual to engage 
the external auditors such as regulatory reviews and certain tax services 
and those where their engagement is not permitted such as work that would 
conflict with ethical guidance to auditors or work relating to the design of 
financial information systems the committee chairman is consulted in 
relation to any proposed work not covered by the list
value of work
nonaudit services require approval as follows
●
   up to £5000 – no formal approval required provided the work is permitted 
under the list referred to above
●
  £5000 to £25000 – group finance director
●
   £25000 to £50000 – group finance director and committee chairman
●
   £50000 and above – group finance director and committee chairman 
following a competitive tender
formal committee approval is also required if the aggregated level of forecast 
fees for nonaudit services exceeds 50 of the statutory audit fee
reporting
the group finance director reports twice yearly to the committee on fees for 
nonaudit services payable to the auditors
as shown in note 5 to the accounts during the year the auditors were 
paid £404k 2009 £338k for auditrelated work and £689k 2009 £522k 
for nonaudit work of the nonaudit fees £445k related to work required to 
be undertaken by the company’s auditors on the prospectus and associated 
reports in respect of the acquisition of the bss group plc the balance of 
£244k mainly comprised specialist taxation advice in accordance with 
the group’s policy on nonaudit fees a project worth £145k was awarded 
following a competitive tender whilst £62k related to work started in 2008
in view of deloitte’s detailed understanding of the group’s operations and 
accounting policies and being mindful of future auditor reporting obligations 
the audit committee decided that it was appropriate for deloitte to undertake 
the nonbss nonaudit related work previously described in addition £514k 
of fees was paid to other accounting firms for nonaudit work
the committee understands that the total fees paid by the group to deloitte 
in 2010 amount to less than 006 of deloitte’s uk fee income and considers 
that the auditors independence has not been impaired by the nonaudit fees 
paid in 2010
audit  
committee 
report 
for the year ended 31 december 2010  
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60
aud it c ommittee repor t
internal audit
as well as its reviews of the internal audit department’s strategy and processes 
as described above during its meetings in 2010 the committee received 
presentations from the group head of business risk and assurance about 
the results of work undertaken by the department and approved its plans for 
work in 2011 the committee was satisfied with the overall effectiveness of 
the department
overview
as a result of its work during the year and taking into account the result 
of the board and committee evaluation process described on page 56 the 
committee has concluded that it has acted in accordance with its terms of 
reference and has ensured the independence objectivity and effectiveness of 
the external and internal auditors 
the chairman of the committee will be available at the annual general 
meeting to answer any questions about the work of the committee
chris bunker
chairman audit committee
22 february 2010
audit  
committee 
report 
for the year ended 31 december 2010 61
 
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d ire ct ors’ remunerati on repor t 
directors’ 
remuneration 
report 
for the year ended 31 december 2010
introduction
this report sets out the group’s remuneration policies for its directors and 
senior executives and describes how those policies are applied in practice 
unaudited information
highlights of 2010
●
   stretching annual performance targets exceeded resulting in bonus 
payments being made to our strong management team
●
   25 of annual bonus deferred for three years held in the form of shares 
●
   same base salary percentage increases applied to all levels including 
executive directors for the fourth year in succession
●
   all employees continue to share in the group’s success through participation 
in short term incentive plans and longer term share plans and
●
   alignment of our ceo’s pension remuneration going forward to fit with the 
company’s pension policy keeping his fixed pay the same
remuneration committee chairman’s statement
in addition to its standard remit the remuneration committee has spent much 
time reviewing the pension provision for the group executives affected by 
legislation changes as well as keeping an eye on the proposed changes for 
2012 which will affect all employees 
our remuneration principles for all employees remain the same for the 
following financial year 
●
   remuneration should be competitive and contribute to the delivery of short 
and longterm shareholder value
●
   remuneration should contain significant performance related incentive 
elements whose proportion increases with seniority
●
   all employees should share in the success of the group through participation 
in both annual bonus schemes and longer term share plans 
maximum bonus awards have been made to our executive directors as a 
result of the group exceeding the stretching targets set for 2010 which are 
described in more detail later in this report being exceeded in contrast the 
recession has continued to impact maturing long term incentive plans and 
as anticipated no awards vested in 2010
remuneration policy for executive directors
our incentive structure is designed to support the group goal of consistently 
outperforming in our markets 
in order to attract motivate and retain high quality executives to achieve 
this goal we continue to focus our efforts in ensuring that we have the right 
mix of fixed and variable pay with more than 50 of total remuneration being 
performance related 
in determining the overall policy for executive remuneration we consider 
all associated risks arising throughout the company are considered thereby 
ensuring that the overall remuneration structure and variable scheme targets 
are set so that they do not give rise to any undue risk taking further in 
formulating our policy we consider pay and employment conditions elsewhere 
in the company
in addition we encourage our most senior executives to build up a 
shareholding in the company over a fiveyear period via formal shareholding 
guidelines the target shareholding for the executive directors is 100 of 
salary and 50 for our most senior managers senior executives are aware 
that the remuneration committee may scale back future longterm incentive 
awards for individuals who have not consistently met the target level share 
options which have vested but not been exercised count towards this target 
as at 31 december 2010 all three executive directors had a shareholding 
valued in excess of their salary guideline as did all but two of the group’s top 
23 senior managers
base salaries and benefits
base salaries are reviewed annually for each director and are normally set 
with reference to individual performance experience and contribution together 
with developments in the relevant employment market internal relativities and 
reference to the general economic environment it is this last point which has 
outweighed all others in determining pay awards for 2011 
in line with the majority of employees the executive directors were awarded 
a 25 base pay increase in january 2011this means that for the fourth 
successive year the same salary increase percentage has been applied to all 
employee levels in addition to their basic salary directors receive a benefits 
package which includes a car or car allowance in the case of john carter and 
paul hampden smith private medical insurance life assurance an incapacity 
benefits scheme and membership of a company pension scheme or a cash 
allowance in lieu
from 1 january 2011 the executive directors’ salaries are 
john carter £384400 
geoff cooper £639405 
paul hampden smith £384400
in respect of pension arrangements geoff cooper agreed upon joining the 
company that he would be pensioned within the defined benefits scheme 
on his salary up to the earnings cap and receive a cash allowance on 
salary above the earnings cap in 2006 when the lifetime allowance was 
introduced he elected to cease being a member of the scheme for further 
service accrual and to receive a cash allowance in lieu this allowance 
was calculated with regard to the cost the company would have incurred 
in providing continuing pension accrual in contrast for any executive now 
choosing such a cash allowance the rate is equal to the percentage of salary 
payable by the company to the dc pension plan 25 for executive directors 
recognising this mismatch and following shareholder consultation the 
excess of geoff cooper’s cash allowance over 25 has been consolidated into 
salary whilst there is no change to the value of his fixed pay it is recognised   
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62
d ire ct ors’ remunerati on repor t 
that this increases his variable pay opportunity in making the decision to effect 
the change the remuneration committee undertook an independent review of 
geoff cooper’s position on base and variable pay versus the market against 
the 50150 ftse companies and was satisfied that the position of geoff 
cooper’s remuneration at between median and upper quartile versus this 
group of comparator companies is entirely appropriate for a chief executive of 
his calibre and proven delivery of results there were no other changes in the 
basis of directors’ pension entitlements during the year
during 2010 paul hampden smith and john carter were both members 
of the group’s defined benefits pension scheme as described in detail in last 
year’s report increases in defined benefit members’ pensionable salaries after 
1 december 2009 were capped at 3 per annum irrespective of any future 
salary increases which may at some time exceed 3 there are no unfunded 
pension commitments or similar arrangements for directors 
as a result of the announced changes in the taxation of pensions at april 
2011 and april 2012 we anticipate that paul hampden smith and john carter 
together with a number of other senior executives may choose to cease 
accrual in the group’s pension schemes during 2011 senior executives may 
  performance  maximum bonus achieved 
element purpose measure weighting target rights restated actual
 
rewards achievement of annual
 eps  50 731p 772p
annual bonus financial and personal  roc e 30 112 122
 
performance targets
 personal objectives 20 20 20
 the main personal objectives which were achieved covered the following areas
●
   market outperformance   
●
   risk monitoring
●
   health and safety
●
   pricing strategy
●
   global sourcing initiatives
●
   category management capability 
●
   supply chain optimisation 
●
   succession
the remuneration committee assessed the specific achievements against these objectives by reviewing the detailed measures attached to each one
directors’ 
remuneration 
report 
for the year ended 31 december 2010
choose to receive a cash allowance in lieu of pension benefits or to have 
dc pension contributions up to the level of the annual allowance and a cash 
allowance above where an executive receives a cash allowance in lieu of 
pension benefits this is not taken into account for the purposes of bonuses 
longterm incentives or other benefits 
annual bonus
executive directors are eligible for an annual bonus the remuneration 
committee sets targets linked to board approved annual budgets maximum 
bonus payments are only awarded when performance for the year in question 
significantly exceeds the agreed annual budget targets the maximum bonus 
levels remain unchanged for 2011 at 120 of salary for the chief executive 
and 100 of salary for the finance director and the chief operating officer
2010 annual bonus
as a result of the very strong performance of our merchanting businesses 
compared with their competitors all group financial and individual business 
related targets have been exceeded as outlined in the table below 
consequently and as a reflection of this sector leading annual performance 
bonus payments at maximum levels have been approved for 2010 
the targets and achievement in relation to the 2010 bonus scheme are below  63
 
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d ire ct ors’ remunerati on repor t 
2011 annual bonus
for 2011 there are no changes to the bonus metrics and relative weightings and the potential bonus maxima as a percentage of salary remain unchanged 
despite a greater ‘stretch’ in the group’s targeted financial performance in its annual budget for 2011 
performance ceo plan coo  fd plans
measure weighting maximum on target maximum on target
eps 50 60 30 50 25
roce 30 36 18 30 15
individual objectives 20 24 024 20 020
total 100 120 4872 100 4060
long term incentive plans 
as anticipated the performance measures attached to the long term incentive awards made in 2007 were not achieved resulting in no awards vesting under 
these schemes in 2010 however reflecting the sector leading performance of the tp group since 2008 it is likely that there will be partial vesting in 2011 of 
the share matching plan made in 2008 the ‘one off’ executive share option scheme awarded to the senior management group in november 2008 is also still 
on target to vest in full the executive directors were not included in this award
performance share plan ‘psp’ 
for 2011 the remuneration committee has reviewed the relative weighting for the performance conditions and recalibrated the weighting by increasing the eps 
element this change is designed to reflect the significant change in the group’s focus due to the bss acquisition and shareholders’ interests the remuneration 
committee believes that the recalibrated weightings are more appropriate for this 2011 award taking these factors into account 
psp element rationale weighting
aggregate cashflow  key measure to take account of the importance of cash generation in the current climate 40
relative total shareholder return ‘tsr’  external measure of shareholder value creation  20
eps growth  profits generated for shareholders  40
the targets proposed for 2011 psp awards are as follows
 eps – no change to the current eps growth targets as set out below the 2010 base year eps for the 2011 awards will be increased on a ‘perfect foresight’ basis 
to reflect the proforma group 2010 performance including bss
eps growth  of eps element that vests
rpi  10 pa  100
rpi  3 pa 30
these targets will continue to prove to be stretching in the current climate
relative total shareholder return ‘tsr’ – the company’s tsr will be measured against the tsr of the constituent companies of the ftse 250 index 
excluding investment trusts 
travis perkins plc tsr relative to ftse 250 index  of tsr element that vests
upper quartile top 25 100
median top 50 30
straightline vesting between these points
a three month averaging period at the start and end of the performance period will be used to calculate tsr 
directors’ 
remuneration 
report 
for the year ended 31 december 2010  
2038604 proof 2 310311
64
d ire ct ors’ remunerati on repor t 
 aggregate cashflow – to reflect the importance of effective working capital 
management and of generating cash from assets threeyear aggregate 
cash flow targets will apply based on the company’s threeyear plan the 
committee will if appropriate adjust for the impact of items such as major 
capital investments or disposals the proposed target range for this psp 
element in the 2011 award is £884m – £977m with 0 vesting at less than 
£884m and 100 of this element vesting at £977m on a straight line basis 
the committee will continue to review annually whether the performance 
targets and their percentage weightings described above remain appropriate 
and challenging or whether they should be recalibrated taking into account 
economic expectations the industry’s outlook and shareholder interests
the maximum psp award level for all executive directors is 150 of basic 
salary however for awards made in 2010 and those proposed for 2011 the 
maximum award is restricted to 120 for the ceo and 100 of salary for the 
other executive directors 
share matching scheme
the maximum personal investment in the share matching scheme in 2011 
is 50 of post tax salary the performance targets for the matching share 
awards are based on cash return on capital employed ‘croce’ the targets 
for awards planned for 2011 are set by the remuneration committee and 
determined by the company’s threeyear business plan 30 of the matching 
award 06 for 1 vests if the target set is met with a straight line increase 
required above target for a 2 for 1 match the target range planned for the 
2011 award is 1075 – 1189 where none of the matching award will vest 
over the threeyear period unless the average croce is at least 1075 and 
the whole of the matching award will vest if the average croce is 1189 
or more the proposed targets for 2011 also take into account the impact 
of the bss acquisition and are considered to be appropriately stretching in 
the current environment with the target range for matching awards being 
significantly higher than that attached to the 2010 awards 
allemployee share plans
the company also operates two all employee share schemes the sharesave 
scheme and a share incentive plan the travis perkins buy as you earn plan 
nonexecutive directors
the policy of the board is to recruit nonexecutive directors of the highest 
calibre with a breadth of skills and experience appropriate for the company’s 
business nonexecutive directors are appointed for a period of three years at 
the end of which the appointment may be renewed by mutual agreement it is 
the board’s policy that nonexecutive directors should generally serve for six 
years two three year terms and that any term beyond this should be subject 
to a rigorous review this review would take into account both the need for 
progressive refreshing of the board and the particular requirements of the 
company at the time of the possible extension nonexecutive directors do not 
have a service contract but each has received a letter of appointment expiring 
on the following dates
chris bunker january 2012
john coleman february 2014
philip jansen april 2012
andrew simon february 2012
robert walker september 2012
the letters of appointment will be available for inspection at the annual 
general meeting
the remuneration of the nonexecutive directors is determined by the board 
in the case of the chairman on the recommendation of the remuneration 
committee each nonexecutive director receives an annual fee in addition 
chris bunker and andrew simon receive additional fees for in the case of 
the former the role of senior independent director and for chairing the audit 
committee and in the case of the latter for chairing the remuneration and 
health  safety committees during 2010 these fees were subject to an 
external benchmarking review as a result of which from 1 july 2010 annual 
fees were increased for the first time since 2007 to the following
base fee £50000 pa
additional fee for senior independent director £7000 pa 
additional fee for committee chairmanship £10000 pa
additional fee for second committee chairmanship £4000 pa
nonexecutive directors do not receive any other benefits and are not 
eligible to join a company 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 schemes
directors’ 
remuneration 
report 
for the year ended 31 december 2010 65
 
2038604 proof 2 310311
d ire ct ors’ remunerati on repor t 
150
100
50
0
2005 2006 2007 2008
 travis perkins plc  ftse 250
2009 2010
committee details
during the year the committee comprised andrew simon chairman chris 
bunker john coleman all of whom are independent nonexecutive directors 
together with tim stevenson until his retirement in may 2010 when he was 
replaced by robert walker it met 7 times in 2010 attendance at the meetings 
is shown on page 56 the committee is responsible for the broad policy on 
directors’ and senior executives’ remuneration it determines all aspects of 
the remuneration packages of the executive directors and reviews with the 
chief executive the remuneration packages of other senior executives it also 
oversees the administration of the share schemes the committee’s terms of 
reference which are available on our website or from the company secretary 
require it to give due regard to the best practice contained in the code 
the committee keeps itself fully informed of relevant developments and best 
directors’ 
remuneration 
report 
for the year ended 31 december 2010
total shareholder return
as required by the companies act the graph below shows total shareholder return for travis perkins’ shares over the last five years relative to the ftse 250 index 
total shareholder return is defined as a combination of growth in the company’s share price and dividends paid to shareholders the ftse 250 index has been 
chosen as a comparable broad equity market index because the company has been a member of it for the five year period
practice in remuneration matters and seeks advice where appropriate from 
external advisors hewitt new bridge street a trading name of aon corporation 
provided advice to the committee during the year on executive remuneration 
including the proposed incentive scheme in respect of synergies arising 
from the bss acquisition and also gave an update on trends in executive 
remuneration to the board hewitt new bridge street did not provide other 
services to the company during the year but another part of aon corporation 
provides insurance broking services deloitte llp also gave some advice on 
the performance share plan and they also provide audit and taxation services 
to the company these advisors were appointed by the committee in addition 
geoff cooper chief executive paul hampden smith finance director andrew 
pike group company secretary carol kavanagh group human resources 
director and stella girvin deputy company secretary have assisted the 
committee in its work but never in respect of their own remuneration  
2038604 proof 2 310311
66
d ire ct ors’ remunerati on repor t 
audited information
contracts of executive directors
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 these 
contracts provide for six month’s notice from the directors and 12 month’s notice from the company they do not specify any particular level of compensation in 
the event of termination or change of control
john carter 6 august 2001
geoff cooper 1 february 2005
paul hampden smith 8 october 1996
it is the company’s policy to allow each executive director to hold one nonexecutive directorship in another company and to retain the fee payable
amount of directors’ emoluments
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 details of directors’ remuneration are set out in the table below 
  basic salary annual bonus benefits in kind total remuneration
  2010 2009 2010 2009 2010 2009 2010 2009
  £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
executive        
geoff cooper
1
 780 750 643 636 1 26 1424 1412
paul hampden smith
2
 390 377 375 371 1 1 766 749
john carter 375 363 375 371 31 29 781 763
nonexecutive        
chris bunker 60 52     60 52
john coleman 44 38     44 38
philip jansen 44 28     44 28
andrew simon 55 46     55 46
tim stevenson
3
 68 180     68 180
robert walker 162 25     162 25
  1978 1859 1393 1378 33 56 3404 3293
notes
1  highest paid director – basic salary includes a cash allowance of £244007 2009 £231167 which replaced continuing pension accrual from april 2006 this does not count when 
calculating annual bonus and granting share incentives geoff cooper also received and retained in 2010 £92840 2009 £84840 in respect of his nonexecutive chairmanship of 
dunelm group plc
2  basic salary includes a £13000 ‘cash for car’ allowance and a £1500 fuel allowance which do not count when calculating annual bonus and granting share incentives paul hampden 
smith also received and retained in 2010 £40000 2009 £16558 in respect of his nonexecutive directorship of redrow plc
3 retired 17 may 2010
directors’ 
remuneration 
report 
for the year ended 31 december 2010 67
 
2038604 proof 2 310311
d ire ct ors’ remunerati on repor t 
directors’ pension entitlements
pension entitlements of the executive directors during the year were as follows
  john carter paul hampden smith geoff cooper
age at 31 december 2010 49 50 56
  £’000 £’000 £’000
accrued pension at 31 december 2009 260 72 5
accrued pension at 31 december 2010 290 82 5
increase in accrued pension in 2010 30 10 
real increase in accrued pension in 2010 17 6 5
transfer value of the real increase in accrued pension net of member’s contributions 234 40 
value of increase in accrued benefit 268 74 5
member’s contributions towards pension 33 33 
increase in transfer value net of member’s contributions 501 102 8
transfer value of benefits accrued at 31 december 2009 4074 1104 108
transfer value of benefits accrued at 31 december 2010 4608 1239 116
notes
1 only base salary is pensionable for service from 1 december 2004
2  geoff cooper ceased future accrual on 5 april 2006 but benefits up to that date retain a link to current salary subject to the earnings cap which applied up to april 2006 this was 
cost neutral for the company
3 salary sacrifice was introduced for member contributions in april 2006 the figures above include the sacrificed amounts
4 any pensions paid on early retirement are subject to abatement
travis perkins’ share price information 2010 2009
midmarket price at the year end   1058p 852p
highest midmarket price during the year   1058p 880p
average midmarket price during the year   817p 592p
lowest midmarket price during the year   665p 229p
directors’ shareholdings
the directors’ holdings of ordinary 10p shares of travis perkins plc at 31 december 2010 and 2009 were as follows
   2010 2009
director interest  no no
chris bunker beneficial owner  11900 11900
john carter beneficial owner  52062 45510
john coleman beneficial owner  2465 2465
geoff cooper beneficial owner  165094 135904
paul hampden smith beneficial owner  208883 186593
philip jansen beneficial owner   
andrew simon beneficial owner  3400 3400
robert walker beneficial owner  65000 25000
between 31 december 2010 and the date of this report the only change to the above directors’ shareholdings is to paul hampden smith’s whose shareholding 
had increased to 208907 because of his monthly contribution to the travis perkins’ buy as you earn plan
directors’ 
remuneration 
report 
for the year ended 31 december 2010  
2038604 proof 2 310311
68
d ire ct ors’ remunerati on repor t 
share matching scheme
participation by directors is as follows  
   outstanding granted lapsed vested  outstanding
grant date  1 jan 2010  during year during year during year 31 dec 2010
   no no no no no
geoff cooper    
2 april 2007 deferred shares
5
 7634   7634 
  deferred matching shares 7634  7634  
  investment matching shares 16031  16031  
1 april 2008 investment matching shares 103988    103988
19 may 2009 investment matching shares 157785    157785
16 march 2010 investment matching shares  71853   71853
paul hampden smith    
2 april 2007 deferred shares
6
 5213   5213 
  deferred matching shares 5213  5213  
  investment matching shares 13091  13091  
1 april 2008 investment matching shares 72787    72787
19 may 2009 investment matching shares 110450    110450
16 march 2010 investment matching shares  50296   50296
john carter    
2 april 2007 deferred shares
6
 5213   5213 
  deferred matching shares 5213  5213  
  investment matching shares 10687  10687  
19 may 2009 investment matching shares 63974    63974
16 march 2010 investment matching shares  50296   50296
notes
1 vesting is on the third anniversary of the grant date
2 awardpurchase prices restated for the rights issue are 2 april 2007 1586p 1 april 2008 840p 19 may 2009 553p 16 march 2010 740p
3  performance criteria apply for the share matching shares granted in 2007 which lapsed during 2010 minimum vesting required eps to exceed inflation by 4 a year for investment 
matching shares granted in 2008 2009 and 2010 a condition based on a three year average of cash return on capital employed ‘croce’ applies as described on page 64 for 2008 
the target range was 115 – 125 for 2009 the target range was 645 – 882 and for 2010 the target range was 75 – 90
4 the share price on the date the deferred shares vested was 835p
5 the gross gain realised on awards vesting in the year was £50728
6 the gross gain realised on awards vesting in the year was £34640
directors’ 
remuneration 
report 
for the year ended 31 december 2010 69
 
2038604 proof 2 310311
d ire ct ors’ remunerati on repor t 
performance share plan
participation by directors is as follows
  outstanding granted outstanding
grant date 1 jan 2010 during year 31 dec 2010
  no no no
geoff cooper   
5 march 2008 73015  73015
23 june 2009 131289  131289
5 march 2010  92437 92437
paul hampden smith   
5 march 2008 42591  42591
23 june 2009 76585  76585
5 march 2010  53921 53921
john carter   
5 march 2008 42591  42591
23 june 2009 76585  76585
5 march 2010  53921 53921
notes
1 vesting is on the third anniversary of the grant date
2 award prices restated for the 2009 rights issue are 5 march 2008 850p 23 june 2009 473p 5 march 2010 6955p 
3  performance criteria apply for performance shares granted in 2008 and 2009 vesting is at 33 13 if eps exceeds inflation by 3 a year pro rata between 100  33 13 if eps 
exceeds inflation by between 3 and 10 and 100 if eps exceeds inflation by 10 performance conditions for the 2010 award are vesting is at 30 if eps exceeds inflation by 
3 a year tsr is in top 50 and aggregate cashflow is at least £470m vesting is at 100 if eps exceeds inflation by 10 a year tsr is in top 25 and aggregate cashflow is at 
least £520m there is straight line vesting between these points
deferred share bonus plan
participation by directors is as follows
  outstanding granted outstanding
grant date 1 jan 2010 during year 31 dec 2010
  no no no
geoff cooper   
5 march 2008 13564  13564
3 march 2010  19862 19862
paul hampden smith   
5 march 2008 7743  7743
3 march 2010  11586 11586
john carter   
5 march 2008 7743  7743
3 march 2010  11586 11586
notes
1 vesting is on the third anniversary of the grant date
2 the award price restated for the 2009 rights issue for 5 march 2008 was 998p for 3 march 2010 the award price was 8011667p
directors’ 
remuneration 
report 
for the year ended 31 december 2010  
2038604 proof 2 310311
70
d ire ct ors’ remunerati on repor t 
share award for john carter
 outstanding granted outstanding
grant date 1 jan 2009 during year  31 dec 2010
 no no no
10 november 2009 47612  47612
notes
1 the one off award structured as a nil cost share option was made following consultation with principal shareholders in 2009
2 the award vests in equal tranches after completion of years four five and six the first year being 2009
3  the performance conditions are linked to agreed procurement improvement initiatives agreed annually together with delivery of john carter’s objectives as part of travis perkins’ 
strategic plan
executive share options 
participation by directors in the 2001 executive share option scheme is as follows
   
 outstanding  lapsed outstanding 
 1 jan 2010 during year  31 dec 2010 exercise price exercise period
  no  no  no
geoff cooper 17980  17980 1320p anytime until 31315
 64399 64399  1553p 
paul hampden smith 49923  49923 596p anytime until 3711
  39368  39368 845p anytime until 9412
 51994  51994 841p anytime until 10413
 23787  23787 1033p anytime until 15314
 10489  10489 1320p anytime until 31315
 39444 39444  1553p 
john carter 37296  37296 845p anytime until 9412
 41594  41594 841p anytime until 10413
 22058  22058 1033p anytime until 15314
 10487  10487 1320p anytime until 31315
 39444 39444  1553p 
notes
1 performance conditions apply for the grant still to vest 25 of the options vest at eps growth of rpi plus 9 and full vesting requires eps growth plus 15 
directors’ 
remuneration 
report 
for the year ended 31 december 2010 71
 
2038604 proof 2 310311
d ire ct ors’ remunerati on repor t 
sharesave options
participation by directors in the 2002 travis perkins’ sharesave scheme is as follows
   outstanding outstanding
   1 jan 2010 31 dec 2010
   no no
geoff cooper  3670 3670
paul hampden smith  3670 3670
john carter  3670 3670
notes
1 no performance conditions apply
2 all options are exercisable from 1 december 2013 to 31 may 2014 at a price of 442p rights restated 
share dilution
at 31 december 2010 shares under grant for executive share schemes over a 10 year period represented 148 of issued share capital and shares under grant 
for all employee share schemes over the previous 10 years represented 431 there were 6672788 276 of issued share capital unallocated shares and 
289142 allocated shares 012 held in the employee trust 
 
shareholders’ approval
the directors confirm that this report has been drawn up in accordance with the requirements of the companies act 2006 and the combined code on corporate 
governance 
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
andrew simon  
chairman remuneration committee 
22 february 2011
directors’ 
remuneration 
report 
for the year ended 31 december 2010  
2038604 proof 2 310311
72
nominati ons c ommittee repor t
nominations 
committee 
report 
for the year ended 31 december 2010
the principal role of the nominations committee is to identify and nominate 
for board approval candidates to fill board vacancies as and when they arise 
it is required to prepare a description of the role and capabilities required 
for any appointment and to maintain contact with major shareholders about 
appointments to the board it also keeps the structure size and composition of 
the board under review and considers succession planning for both executive 
and nonexecutive directors and for other senior executive posts the terms of 
reference of the committee are available on the company’s website or from 
the company secretary
during the year the committee members were tim stevenson chairman 
until his retirement in may 2010 when he was replaced as chairman by 
robert walker together with chris bunker and john coleman both of whom 
are independent nonexecutive directors 
the committee met once in 2010 in february to agree on the scope of a 
review of the group’s succession plans this review was then the subject of a 
meeting of all the nonexecutive directors in may which was attended in part 
by the chief executive and the group hr director further work was planned 
as a result of that meeting which together with an assessment of succession 
plans and capabilities in bss will be the subject of a number of committee 
meetings in 2011
the chairman of the nominations committee will be available at the annual 
general meeting to answer any questions about the work of the committee
robert walker 
chairman nominations committee 
22 february 2011 73
 
2038604 proof 2 310311
d ire ct ors’ repor t 
the directors present their annual report and audited accounts for the year 
ended 31 december 2010
principal activities
travis perkins is one of the largest builders merchants and home improvement 
retailers in the uk the principal activities of the group are the sale of timber 
building materials and plumbing and heating products and the hiring of tools 
to the building trade industry generally and the general public within the 
united kingdom the directors are not aware at the date of this report of any 
likely major changes in the group’s activities in the next year
business review
a review of the group’s position developments and future prospects is 
contained in the chairman’s statement on pages 12 and 13 the chief 
executive’s review of the year on pages 14 to 24 the chief operating officer’s 
review of the year on pages 26 to 30 and the finance director’s review of the 
year on pages 32 to 36 a review of the group’s environmental performance 
is on pages 37 to 42
results and dividends 
the group results for the year ended 31 december 2010 and dividends for the 
year ending 31 december 2010 are set out on page 80 if approved the final 
dividend will be paid on 31 may 2011 to those shareholders on the register at 
the close of business on 6 may 2011
balance sheet and post balance sheet events
the balance sheet on pages 82 and 83 shows the group’s financial position 
no significant events have occurred since the balance sheet date
principal risks and uncertainties
a review of the group’s principal risks and uncertainties are on pages 49 to 54
directors and their interests 
the names of the directors at 31 december 2010 together with their 
biographical details are set out on pages 46 and 47 all of those directors 
held office throughout the year in accordance with the company’s articles 
of association andrew simon philip jansen and john carter will retire and 
being eligible will offer themselves for reelection at the forthcoming annual 
general meeting john carter has a rolling 12 month notice period in his 
contract as nonexecutive directors andrew simon and philip jansen do not 
have service contracts in the light of the evaluation of their performances as a 
result of the process described on page 56 robert walker chairman confirms 
on behalf of the board that andrew simon and philip jansen continue to be 
effective in and committed to their roles as nonexecutive directors
directors and officers of the company are entitled to be indemnified out of 
the assets of the company in respect of any liability incurred in relation to the 
affairs of the company or any associate company to the extent the law allows 
in this regard the company is required to disclose that under article 140 of 
the company’s articles of association the directors have the benefit of an 
indemnity to the extent permitted by the companies act 2006 against liabilities 
incurred by them in the execution of their duties and exercise of their powers 
this indemnity is currently in force in addition if proceedings against directors 
are instituted subsequent to any person acquiring control of the company the 
company has agreed with each of the directors that pursuant to article 140 d 
of the company’s articles of association the company shall provide a director 
with funds subject to certain restrictions to meet expenditure incurred by that 
director in defending any criminal or civil proceedings
a copy of the company’s articles of association which contains this indem
nity is available for inspection at the company’s registered office during normal 
business hours and will be available for inspection at and during the period of 
30 minutes prior to the company’s forthcoming annual general meeting 
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 company has undertaken to comply with the best practice on approval 
of directors’ conflicts of interests in accordance with the company’s articles of 
association under the companies act 2006 a director must avoid a situation 
where he has or can have a direct or indirect interest that conflicts or possibly 
may conflict with the company’s interests 
the disclosable interests of directors at 31 december 2010 including 
holdings if any of wives and of children aged under 18 were as detailed in 
the directors’ remuneration report on pages 67 to 71
substantial shareholdings 
as at 22 february 2011 the company had received notification under the 
disclosure transparency rules that the holdings and voting rights exceeding 
the 3 notification threshold were as follows
directors’  
report 
for the year ended 31 december 2010
 number 
sprucegrove investment management ltd 13706676 567
standard life investments ltd 12260926 507
morgan stanley  9334607 386
legal  general investment management ltd 8804059 364
pzena investment management llc 8533159 353
axa  8147201 337
blackrock advisors  7322733 303  
2038604 proof 2 310311
74
d ire ct ors’ repor t 
close company status 
the close company provisions of the income and corporation taxes act 1988 
do not apply to the company
employees and charitable donations
statements on these matters are contained in the chief executive’s review of 
the year on pages 21 and 22 respectively 
details of the number of employees and related costs can be found in note 
7 to the financial statements 
the company is committed to equality of opportunity and recognises the 
benefit of diversity within its workforce it has an equal opportunities policy 
aimed at ensuring that employment decisions are based on ability and 
potential regardless of gender race colour ethnic origin or sexual orientation 
age or disability in particular applications for employment by disabled persons 
are always fully considered bearing in mind the aptitudes of the person 
concerned in the event of a member of staff becoming disabled every effort 
is made to ensure that their employment with the group continues and that 
appropriate training is arranged it is the policy of the company that the 
training career development and promotion of disabled persons should as far 
as possible be identical to that of other employees
the group’s policies and practices have been designed to keep 
employees informed on matters relevant to them as employees through 
regular meetings and newsletters employee representatives are consulted 
regularly on a wide range of matters affecting their interests all employees 
with more than three months’ service are eligible to participate in the 
company’s sharesave and buy as you earn plans details are provided in the 
directors’ remuneration report
political donations
the group did not give any money for political purposes in the uk nor did 
it make any donations to eu political organisations or incur any eu political 
expenditure during the year 
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 2010 represented 55 days 31 
december 2009 52 days of average purchases of goods and services the 
company’s trade creditors at 31 december 2010 represented 30 days 2009 
30 days
auditors
resolutions to reappoint deloitte llp as the company’s auditors and to 
authorise the directors to fix the auditors’ remuneration will be proposed at 
the annual general meeting
statement on disclosure of information  
to auditors
each of the persons who is a director at the date of approval of this report 
confirms that
●
  so far as the director is aware there is no relevant audit information of 
which the company’s auditors are unaware and
●
  the director has taken all reasonable steps that he ought to have taken as 
a director in order to make himself aware of any relevant audit information 
and to establish that the company’s auditors are aware of that information 
this confirmation is given and should be interpreted in accordance with the 
provisions of s418 of the companies act 2006 
   share capital and change of control
as at 31 december 2010 the company had an allotted and fully paid share 
capital of 241701917 ordinary shares of 10 pence each with an aggregate 
nominal value of 24170192 including shares owned by the employee share 
ownership trust the ordinary shares are listed on the london stock exchange 
all the shares rank pari passu the rights and obligations attaching to the 
shares are set out in the company’s articles of association fully paid shares in 
the company are freely transferable there are no persons that hold securities 
carrying special rights with regard to the control of the company details of 
the structure of the company’s share capital and changes in the share capital 
during the year are also included in note 22 to the financial statements
the travis perkins employee share ownership trust owns 6961930 
shares in the company 288 for use in connection with the company’s 
share schemes any voting or other similar decisions relating to those shares 
would be taken by the trustees who may take account of any recommendation 
of the company
there are no restrictions on voting rights attaching to the company’s 
ordinary shares the company is not aware of any agreements between 
holders of securities that may result in restrictions on the transfer of securities 
or on voting rights
the rules governing the appointment and replacement of board members 
and changes to the articles of association accord with usual english company 
law provisions the powers of the company’s directors are set out in the 
company’s articles of association in particular the board has the power 
to purchase its own shares and is seeking renewal of that power at the 
forthcoming annual general meeting within the limits set out in the notice of 
that meeting
there are a number of agreements to which the company is a party that 
may take effect alter or terminate upon a change of control following a 
takeover bid none of these agreements is considered to be significant in the 
context of the company as a whole 
directors’  
report 
for the year ended 31 december 2010 75
 
2038604 proof 2 310311
d ire ct ors’ repor t 
there are no agreements providing for compensation for directors or 
employees on change of control as set out in the directors remuneration 
report on page 66 service contracts for executive directors do not specify any 
particular level of compensation in the event of termination following change 
of control of the company as noted above the company has agreed with 
each of the directors that it shall provide a director with funds subject to 
certain restrictions to meet expenditure incurred in defending any criminal or 
civil proceedings if such proceedings are instituted subsequent to any person 
acquiring control of the company
annual general meeting 
the annual general meeting of the company will be held at northampton 
rugby football club franklin’s gardens weedon road northampton nn5 
5bg on thursday 26 may 2011 at 1145 am a buffet lunch will be available 
in addition to the resolutions to approve the receipt of the company’s annual 
accounts the declaration of a final dividend the reappointment of certain 
of the company’s directors and the company’s auditors and to give the 
directors authority to fix the auditors’ remuneration the following items are 
to be proposed at the forthcoming annual general meeting and the board 
recommends that shareholders vote in favour of all resolutions put before the 
annual general meeting
resolution 8 directors’ remuneration report
in accordance with the directors’ remuneration report regulations 2002 this 
resolution seeks shareholders’ approval of the directors’ remuneration report 
as set out on pages 61 to 71
resolution 9 renewal of authority to allot shares
paragraph a of this resolution would give the directors the authority to allot 
ordinary shares up to an aggregate nominal amount equal to £8057284 
representing 80572842 ordinary shares of 10 pence each this amount 
represents approximately onethird of the issued ordinary share capital of 
the company as at 22 february 2011 the latest practicable date prior to 
publication of this notice
in line with guidance issued by the association of british insurers the 
‘abi’ paragraph b of this resolution would give the directors authority to 
allot ordinary shares in connection with a rights issue in favour of ordinary 
shareholders up to an aggregate nominal amount equal to £16114568 
representing 161145685 ordinary shares of 10p each as reduced by the 
nominal amount of any shares issued under paragraph a of this resolution 
this amount before any reduction represents approximately twothirds of the 
issued ordinary share capital of the company as at 22 february 2011 the 
latest practicable date prior to publication of this notice if this authority is 
exercised the directors intend to follow abi guidance issued from time to time 
including as to the reelection of directors
the authorities sought under paragraphs a and b of this resolution will 
expire at the earlier of 30 june 2012 the last date by which the company 
must hold an annual general meeting in 2012 and the conclusion of the 
annual general meeting of the company held in 2012
the directors have no present intention to exercise either of the authorities 
sought under this resolution except under paragraph a to satisfy options 
under the company’s employee share option schemes
resolution 10 limited authority to allot shares for cash
this resolution would give the directors the authority to allot ordinary shares 
or sell any ordinary shares which the company elects to hold in treasury for 
cash without first offering them to existing shareholders in proportion to their 
existing shareholdings
except as provided in the next paragraph this authority would be limited 
to allotments or sales in connection with preemptive offers and offers to 
holders of other equity securities if required by the rights of those shares or 
as the board otherwise considers necessary or otherwise up to an aggregate 
nominal amount of £1208593 representing 12085926 ordinary shares 
this aggregate nominal amount represents approximately 5 of the issued 
ordinary share capital of the company as at 22 february 2011 the latest 
practicable date prior to publication of this notice in respect of this aggregate 
nominal amount the directors confirm their intention to follow the provisions 
of the preemption group’s statement of principles regarding cumulative 
usage of authorities within a rolling 3year period where the principles provide 
that usage in excess of 75 should not take place without prior consultation 
with shareholders
allotments made under the authorisation in paragraph b of resolution 9 
would be limited to allotments by way of a rights issue only subject to the right 
of the board to impose necessary or appropriate limitations to deal with for 
example fractional entitlements and regulatory matters
the authority will expire at the earlier of 30 june 2012 the last date by 
which the company must hold an annual general meeting in 2012 and the 
conclusion of the annual general meeting of the company held in 2012 any 
issue of shares for cash will however still be subject to the requirements of 
the uk listing authority
resolution 11 notice of meetings
under the shareholders’ rights regulations 2009 the notice period for 
general meetings of a company has been extended to 21 days unless certain 
requirements are satisfied the company has met the requirements and 
accordingly this resolution is proposed to allow the company to continue to call 
general meetings on 14 clear days notice the directors believe it is in the best 
interests of the shareholders of the company to preserve the shorter notice 
period and accordingly are putting this resolution to the meeting the shorter 
notice period would not be used as a matter of routine for general meetings 
but only where the flexibility is merited by the business of the meeting and is 
thought to be to the advantage of shareholders as a whole the approval will 
be effective until the company’s annual general meeting in 2012 when it is 
directors’  
report 
for the year ended 31 december 2010  
2038604 proof 2 310311
76
d ire ct ors’ repor t 
expected that a similar resolution will be proposed under the companies act 
2006 in order to be able to call a general meeting on less than 21 clear days’ 
notice the company must make a means of electronic voting available to all 
shareholders
resolution 12 authority to purchase own shares
the authority for the company to purchase its own shares of 10 pence each 
granted at last year’s annual general meeting will expire on the date of 
the forthcoming annual general meeting the directors wish to renew this 
authority and a special resolution which is set out in full in the notice of 
annual general meeting on page 129 will be proposed at the forthcoming 
annual general meeting to give the company the authority to purchase its own 
ordinary shares in the market as permitted by the companies act 2006 the 
authority limits the number of shares that could be purchased to a maximum 
of 24171853 representing 10 of the issued ordinary share capital of the 
company as at 22 february 2011 and sets minimum and maximum prices 
this authority will expire no later than 30 june 2012
the directors consider that it is in the best interests of the company to 
have available this authorisation in case of circumstances when it would 
be appropriate to use it they would only use it after consideration of the 
effect on earnings per share and the longer term benefit for the company and 
shareholders generally the fact that such authorisation is being sought should 
not be taken to imply that shares would be purchased at any particular price 
or indeed at all any ordinary shares purchased pursuant to this authority may 
either be held as treasury shares or cancelled by the company depending on 
which course of action is considered by the directors to be in the best interests 
of shareholders at the time
 as at 22 february 2011 there were options over 12810861 ordinary 
shares in the capital of the company including 1969082 investment 
matching shares 203322 deferred bonus share plan shares and 1474383 
performance share plan shares – these are described in the directors’ 
remuneration report on pages 61 to 71 which represent 53 of the 
company’s issued ordinary share capital excluding any treasury shares if the 
authority to purchase the company’s ordinary shares were exercised in full 
these options would represent 589 of the company’s issued ordinary share 
capital excluding any treasury shares as at 22 february 2011 the company 
did not hold any treasury shares in the company and no warrants over ordinary 
shares in the capital of the company existed
by order of the board
andrew pike 
company secretary
22 february 2011
directors’  
report 
for the year ended 31 december 2010 77
 
2038604 proof 2 310311
s tatement of d ire ct ors’ respons ibilities 
the directors are responsible for preparing the annual report and the financial 
statements in accordance with applicable law and regulations
company law requires the directors to prepare financial statements for 
each financial year under that law the directors are required to prepare 
the group financial statements in accordance with international financial 
reporting standards ifrss as adopted by the european union and article 4 
of the ias regulation and have also chosen to prepare the parent company 
financial statements under ifrss as adopted by the eu under company law 
the directors must not approve the accounts unless they are satisfied that they 
give a true and fair view of the state of affairs of the company and of the profit 
or loss of the company for that period in preparing these financial statements 
international accounting standard 1 requires that directors
●
 properly select and apply accounting policies
●
  present information including accounting policies in a manner that 
provides relevant reliable comparable and understandable information 
●
  provide additional disclosures when compliance with the specific 
requirements in ifrss are insufficient to enable users to understand the 
impact of particular transactions other events and conditions on the entity’s 
financial position and financial performance and
●
  make an assessment of the company’s ability to continue as a going 
concern
the directors are responsible for keeping adequate accounting records that 
are sufficient to show and explain the company’s transactions and disclose 
with reasonable accuracy at any time the financial position of the company 
and enable them to ensure that the financial statements comply with the 
companies act 2006 they are also responsible for safeguarding the assets 
of the company and hence for taking reasonable steps for the prevention and 
detection of fraud and other irregularities
the directors are responsible for the maintenance and integrity of the 
corporate and financial information included on the company’s website 
legislation in the united kingdom governing the preparation and dissemination 
of financial statements may differ from legislation in other jurisdictions
responsibility statement 
we confirm that to the best of our knowledge
●
  the financial statements prepared in accordance with international 
financial reporting standards give a true and fair view of the assets 
liabilities financial position and profit or loss of the company and the 
undertakings included in the consolidation taken as a whole and
●
  the management report which is incorporated into the directors’ report 
includes a fair review of the development and performance of the business 
and the position of the company and the undertakings included in the 
consolidation taken as a whole together with a description of the principal 
risks and uncertainties that they face
by order of the board
  
  
geoff cooper  paul hampden smith 
chief executive  finance director 
22 february 2011  22 february 2011  
statement of  
directors’  
responsibilities 
for the year ended 31 december 2010  
2038604 proof 2 310311
78
independent aud it ors’ repor t
we have audited the financial statements of travis perkins plc for the year 
ended 31 december 2010 which comprise group and parent company income 
statements the group and parent company statements of comprehensive 
income the group and parent company balance sheets the group and 
parent company cash flow statements the group and parent company 
statements of changes in equity and the related notes 1 to 38 the financial 
reporting framework that has been applied in their preparation is applicable 
law and international financial reporting standards ‘ifrss’ as adopted by 
the european union
this report is made solely to the company’s members as a body in 
accordance with chapter 3 of part 16 of the companies act 2006 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 auditor’s 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 auditor
as explained more fully in the directors’ responsibilities statement the 
directors are responsible for the preparation of the financial statements and 
for being satisfied that they give a true and fair view our responsibility is to 
audit and express an opinion on the financial statements in accordance with 
applicable law and international standards on auditing uk and ireland those 
standards require us to comply with the auditing practices board’s ethical 
standards for auditors
scope of the audit of the financial 
statements
an audit involves obtaining evidence about the amounts and disclosures in the 
financial statements sufficient to give reasonable assurance that the financial 
statements are free from material misstatement whether caused by fraud or 
error this includes an assessment of whether the accounting policies are 
appropriate to the group’s and the parent company’s circumstances and 
have been consistently applied and adequately disclosed the reasonableness 
of significant accounting estimates made by the directors and the overall 
presentation of the financial statements
independent auditors’  
report to the members  
of travis perkins plc 
for the year ended 31 december 2010
opinion on financial statements
in our opinion
●
  the financial statements give a true and fair view of the state of the group’s 
and of the parent company’s affairs as at 31 december 2010 and of the 
group’s and the parent company’s profit for the year then ended
●
  the financial statements have been properly prepared in accordance with 
ifrss as adopted by the european union and
●
  the financial statements have been prepared in accordance with the 
requirements of the companies act 2006 and as regards the group financial 
statements article 4 of the ias regulation
separate opinion in relation to ifrss as 
issued by the iasb
as explained in note 1 to the group financial statements the group in 
addition to complying with its legal obligation to apply ifrss as adopted by 
the european union has also applied ifrss as issued by the international 
accounting standards board iasb
in our opinion the group financial statements comply with ifrss as issued 
by the iasb
opinion on other matters prescribed by the 
companies act 2006
in our opinion
●
  the part of the directors’ remuneration report to be audited has been 
properly prepared in accordance with the companies act 2006 and
●
  the information given in the directors’ report for the financial year for 
which the financial statements are prepared is consistent with the financial 
statements 79
 
2038604 proof 2 310311
independent aud it ors’ repor t
independent auditors’  
report to the members  
of travis perkins plc 
for the year ended 31 december 2010
matters on which we are re quired to report 
by exception
we have nothing to report in respect of the following
under the companies act 2006 we are required to report to you if in our 
opinion
●
  adequate accounting records have not been kept by the parent company 
or returns adequate for our audit have not been received from branches not 
visited by us or
●
  the parent company financial statements and the part of the directors’ 
remuneration report to be audited are not in agreement with the 
accounting records and returns or
●
  certain disclosures of directors’ remuneration specified by law are not 
made or
●
  we have not received all the information and explanations we require for 
our audit
under the listing rules we are required to review
●
  the directors’ statement contained within statement of principal risks and 
uncertanties in relation to going concern 
●
  the part of the corporate governance statement relating to the company’s 
compliance with the nine provisions of the june 2008 combined code 
specified for our review and
●
  certain elements of the report to shareholders by the board on directors’ 
remuneration
colin hudson f ca senior statutory auditor 
for and on behalf of deloitte llp 
chartered accountants and statutory auditor 
london united kingdom 
22 february 2011  
2038604 proof 2 310311
80
inc ome s tatement s
income 
statements
for the year ended 31 december 2010
 the group
 –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
  2010 2010 2010 2009 2009 2009
  preexceptional exceptional  preexceptional exceptional
  items items total items items total 
  £m £m £m £m £m £m
 notes     
revenue 4 31528  31528 29309  29309
operating profit before amortisation 5 2390 190 2200 2246 327 2573
amortisation of intangible assets  02  02   
operating profit 5 2388 190 2198 2246 327 2573
finance income  10 175  175 56  56
finance costs  10 398 07 405 502  502
profit before tax  2165 197 1968 1800 327 2127
tax 11 598 43 555 461 92 553
profit for the year  1567 154 1413 1339 235 1574
earnings per ordinary share  12      
basic    696p   884p
diluted    672p   862p
total dividend declared  
per ordinary share  13   150p   
all results relate to continuing operations details of exceptional items are given in notes 5 8 10 and 11
  the company
  –––––––––––––––––––––––––
  2010 2009 
 notes  £m £m
revenue 4 472 1293
operating profit before exceptional items 5 318 1126
exceptional items  134 
operating profit after exceptional items  184 1126
finance income  10 155 49
finance costs  10 421 439
loss  profit before tax  82 736
tax 11 104 151
profit for the year  22 887
all results relate to continuing operations  
2038604 proof 2 310311
81
s tatement s of c omprehens ive inc ome
statements of 
comprehensive 
income
for the year ended 31 december 2010
 the group the company
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 2010 2009 2010 2009
 £m £m £m £m 
profit for the year 1413 1574 22 887
cash flow hedges
losses  gains arising during the year 44 147 44 147
transferred to income statement 68 04 68 04
 24 151 24 151 
actuarial gains  losses on defined benefit pension schemes 159 283  
 183 132 24 151
movement on cash flow hedge cancellation payment 48 140 48 140
tax relating to components of other comprehensive income 67 125 20 46 
other comprehensive income  loss for the year 164 147 52 57
total comprehensive income for the year 1577 1427 74 944  
2038604 proof 2 310311
82
 the group the company
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
  2010 2009 2010 2009
 notes £m £m £m £m 
assets
noncurrent assets    
property plant and equipment 16 5260 4990 01 01
goodwill 14 16904 13528  
other intangible assets 15 4115 1625  
derivative financial instruments 26 569 447 03 447
investment property 17 04 33  
interest in associates 18 457 317 523 363
investment in subsidiaries 18   26978 18951
loans and receivables 26   1744 
availableforsale investments 18 15 15  
deferred tax asset 28 164 120 147 90
total noncurrent assets  27488 21075 29396 19852
     
 
current assets      
inventories  5716 3127  
trade and other receivables 19 6925 3754 2084 508
derivative financial instruments 26 01  01 
assets held for resale 20 23   
cash and cash equivalents 21 629 3472 124 3170
total current assets  13294 10353 2209 3678
total assets  40782 31428 31605 23530
balance 
sheets
as at 31 december 2010
balance shee t s  
2038604 proof 2 310311
83
balance shee t s
 the group the company
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
  2010 2009 2010 2009
 notes £m £m £m £m 
equity and liabilities     
capital and reserves     
issued capital 22 242 209 242 209
share premium account 24 4715 4712 4704 4701
merger reserve 24 3259  3259 
other reserve 24 213 213  
hedging reserve 24 69 121 69 121
own shares 24 834 837 834 837
accumulated profits 24 11992 10428 1787 1787
total equity  19518 14604 9089 5739
noncurrent liabilities     
interest bearing loans and borrowings 25 7609 7391 6868 7171
derivative financial instruments 26 42 61 1247 61
retirement benefit obligations 8 279 430  
longterm provisions 27 360 437  
amounts due to subsidiaries    13357 9585
deferred tax liabilities 28 1269 628  
total noncurrent liabilities  9559 8947 21472 16817
current liabilities     
interest bearing loans and borrowings 25 723 715 719 740
unsecured loan notes 25 33 38 33 38
trade and other payables 29 9999 6387 267 196
derivative financial instruments 26 25  25 
tax liabilities  394 281  
shortterm provisions 27 531 456  
total current liabilities  11705 7877 1044 974
total liabilities  21264 16824 22516 17791
total equity and liabilities  40782 31428 31605 23530
the financial statements of travis perkins plc registered number 824821 were approved by the board of directors on  
22 february 2011 and signed on its behalf by
 
balance 
sheets
as at 31 december 2010
geoff cooper chief executive paul hampden smith finance director 84
 
2038604 proof 2 310311
84
c onsolidated s tatement of changes in e quit y
consolidated 
statement of 
changes in equity
for the year ended 31 december 2010
 the group
 –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
 issued  share 
 share  premium  merger revaluation  hedging  own  retained total
  capital account reserve reserve reserve shares earnings equity
 £m £m £m £m £m £m £m £m
at 1 january 2009 123 1795  238 178 837 9041 10182
profit for the year       1574 1574
cash flow hedge gains     151   151
actuarial losses on defined benefit
pension schemes       283 283
unamortised cash flow hedge 
cancellation payment     140   140
tax relating to comprehensive income     46  79 125
total comprehensive income for the year     57  1370 1427
issue of share capital 86 3049      3135
costs of issuing shares  132      132
realisation of revaluation reserve in 
respect of property disposals    21   21 
difference between depreciation of assets on 
a historical basis and on a revaluation basis    04   04 
debit to equity for equitysettled 
share based payments       08 08
at 31 december 2009 209 4712  213 121 837 10428 14604
profit for the year       1413 1413
cash flow hedge gains     24   24
actuarial gains on defined 
benefit pension schemes       159 159
unamortised cash flow hedge 
cancellation payment     48   48
tax relating to comprehensive income     20  47 67
total comprehensive income for the year     52  1525 1577
dividends       101 101
issue of share capital 33 03 3259   03 03 3295
realisation of revaluation reserve in
respect of property disposals    02   02 
difference between depreciation of assets on
a historical basis and on a revaluation basis    02   02 
deferred tax rate change    04    04
credit to equity for equitysettled
share based payments       139 139
at 31 december 2010 242 4715 3259 213 69 834 11992 19518  
2038604 proof 2 310311
85
statement 
of changes  
in equity
for the year ended 31 december 2010
 the company
 –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
 issued  share 
 share premium  merger hedging  own  retained  total 
 capital account reserves reserve shares earnings equity
 £m £m  £m £m £m £m
at 1 january 2009 123 1784  178 837 872 1764
profit for the year      887 887
cash flow hedges    151   151
tax relating to comprehensive income    46   46
unamortised cash flow hedge
cancellation payment    140   140
total comprehensive income for the year    57  887 944
issue of share capital 86 3049     3135
costs of issuing shares  132     132
credit to equity for equitysettled 
share based payments      28 28
at 31 december 2009 209 4701  121 837 1787 5739
profit for the year      22 22
cash flow hedges    24   24
tax relating to comprehensive income    20   20
unamortised cash flow hedge
cancellation payment    48   48
total comprehensive income for the year    52  22 74
dividend paid      101 101
issue of share capital 33 03 3259    3295
movement in own shares     03 03 
credit to equity for equitysettled 
share based payments      82 82
at 31 december 2010 242 4704 3259 69 834 1787 9089
s tatement of changes in e quit y 86
 
2038604 proof 2 310311
86
cash fl ow s tatement s
 the group the company
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 2010 2009 2010 2009
 £m £m £m £m 
operating profit before exceptional items 2388 2246 318 1126
adjustments for    
depreciation of property plant and equipment 575 587 01 01
other non cash movements 80 15 23 21
amortisation of intangible fixed assets 02   
impairment of investment  05  
losses of associate 21 32  
write down of value of investments    41
gain on disposal of property plant equipment and investments  113 120  
operating cash flows before movements in working capital 2953 2735 342 1189
increase  decrease in inventories 623 92  
increase  decrease in receivables 32 124 1250 197
increase in payables 1128 523 3539 3088
payments on exceptional items 76 25 78 
payments to the pension scheme in excess of the charge to profits 527 251  
cash generated from operations 2823 3198 2553 4474
interest paid 254 305 275 289
swap cancellation payment  287  287
income taxes paid 424 273  
net cash from operating activities 2145 2333 2278 3898
cash flows from investing activities    
interest received 94 15 80 10
acquisition of shares in unit trust and subsidiaries    1013
proceeds on disposal of property plant equipment and investments  172 208 01 
purchases of property plant and equipment 526 286 02 
interest in associate 125 129 125 129
acquisition of businesses net of cash acquired note 30  2949 10 4816 
net cash used in investing activities 3334 202 4862 1132
financing activities    
net proceeds from the issue of share capital 03 3003 03 3003
swap cancellation receipt 137  163 
payment of finance lease liabilities 13 15  
repayment of unsecured loan notes 06 01 06 01
pension spv 347   
decrease in bank loans 2141 1600 500 1600
dividends paid 101  101 
net cash from financing activities 1774 1387 441 1402
net decrease  increase in cash and cash equivalents 2963 3518 3025 4168
cash and cash equivalents at beginning of year 3472 46 3130 1038
cash and cash equivalents at end of year 509 3472 105 3130
cash flow 
statements
for the year ended 31 december 2010  
2038604 proof 2 310311
87
1 general information
overview
travis perkins plc is a company incorporated in the united kingdom under the 
companies act 2006 the address of the registered office is given on page 
134 the nature of the group’s operations and its principal activities are set out 
in the chief executive’s review of the year the chief operating officer’s review 
of the year and the finance director’s review of the year on pages 14 to 36
these financial statements are presented in pounds sterling the currency 
of the primary economic environment in which the group operates
basis of accounting
the financial statements have been prepared in accordance with international 
financial reporting standards ‘ifrs’ issued by the international accounting 
standards board the financial statements have also been prepared in 
accordance with ifrs adopted by the european union and therefore the group 
financial statements comply with article 4 of the eu ias regulations
basis of preparation
the financial statements have been prepared on the historic cost basis 
except that derivative financial instruments are stated at their fair value the 
consolidated financial statements include the accounts of the company and 
all entities controlled by the company its subsidiaries together referred to 
as ‘the group’ from the date control commences until the date that control 
ceases control is achieved where the company has the power to govern the 
financial and operating policies of an investee entity so as to obtain benefits 
from its activities as such the results of subsidiaries acquired during the year 
are included in the consolidated income statement from the effective date of 
acquisition
in the current financial year the group has adopted the following which did 
not have a material impact
●
  various amendments to ifrs 2
●
   amendments to various standards arising from annual improvements 
issued in april 2009
at the date of authorisation of these financial statements the following 
standards and interpretations which have not yet been applied in these 
financial statements were in issue but not yet effective   
●
   amendment to ifrs 1 issued january 2010 – limited exemptions from 
comparative ifrs 7 disclosures for first time adopters 
●
  ias 24 revised november 2009 – related party disclosures 
●
   amendment to ias 32 issued october 2009 – classification of rights 
issues 
●
   amendment to ifric 14 issued november 2009 – prepayments of a 
minimum funding requirement
the directors anticipate that adoption of these standards and interpretations 
in future periods will have no material impact on the financial statements of 
the group
management is currently of the opinion that the group’s forecasts and 
projections show that the group should be able to operate within its current 
facilities and comply with its banking covenants the group is however 
exposed to a number of significant risks and uncertainties which could impact 
on the group’s ability to meet management’s forecast and projections and 
hence its ability to meet its banking covenants 
the directors believe that the group has the flexibility to react to changing 
market conditions and is adequately placed to manage its business risks 
successfully despite the current uncertain economic outlook and challenging 
macro economic conditions 
a detailed consideration of going concern risks and uncertainties is 
provided in the statement of principal risks and uncertainties on pages 49 
to 54
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
2 significant accounting policies
the principal accounting policies adopted in preparing the financial statements 
are set out below
revenue recognition
revenue is recognised when goods or services are received by the customer 
and the risks and rewards of ownership have passed to them revenue is 
measured at the fair value of consideration received or receivable and 
represents amounts receivable for goods and services provided in the normal 
course of business net of discounts and value added tax for the parent 
company revenue comprises management charges receivable and dividend 
income received
exceptional items
exceptional items are those items of income and expenditure that by 
reference to the group are material in size and unusual in nature or incidence 
that in the judgement of the directors should be disclosed separately on the 
face of the financial statements or in the notes in the case of a segment 
to ensure both that the reader has a proper understanding of the group’s 
financial performance and that there is comparability of financial performance 
between periods
items of income or expense that are considered by the directors for 
designation as exceptional items include but are not limited to significant 
restructurings onerous contracts writedowns or impairments of current 
and noncurrent assets the costs of acquiring and integrating businesses 
gains or losses on disposals of businesses investments or individual assets 
remeasurement gains or losses arising from changes in the fair value of 
notes to the 
financial 
statements 
for the year ended 31 december 2010
no tes t o the financial s tatement s  88
no tes t o the financial s tatement s
 
2038604 proof 2 310311
88
derivative financial instruments to the extent that hedge accounting is not 
achieved or is not effective and pension scheme curtailment gains
business combinations and goodwill
all business combinations are accounted for using the purchase method 
the cost of an acquisition represents the cash value of the consideration andor 
the fair value of the shares issued on the date the offer became unconditional 
the acquiree’s identifiable assets liabilities and contingent liabilities that meet 
the conditions for recognition under ifrs 3 2008 are recognised at their fair 
value at the acquisition date except that
●
   deferred tax assets or liabilities and liabilities or assets related to employee 
benefit arrangements are recognised and measured in accordance with ias 
12 income taxes and ias 19 employee benefits respectively
●
   liabilities or equity instruments related to the replacement by the group of 
an acquiree’s sharebased payment awards are measured in accordance 
with ifrs 2 sharebased payments and
●
   assets or disposal groups that are classified as held for sale in accordance 
with ifrs 5 noncurrent assets held for sale and discontinued operations 
are measured in accordance with that standard
goodwill arising on acquisition represents the excess of the cost of acquisition 
over the share of the aggregate fair value of identifiable net assets including 
intangible assets of a business or a subsidiary at the date of acquisition all 
material intangible fixed assets obtained on acquisition have been recognised 
separately in the financial statements goodwill is initially recognised as an 
asset and allocated to cash generating units then at least annually is reviewed 
for impairment any impairment is recognised immediately in the income 
statement and is not subsequently reversed as such goodwill is stated in the 
balance sheet at cost less any provisions for impairment in value
goodwill arising on acquisitions before the date of transition to ifrs 1 
january 2004 has been retained at the previous uk gaap amounts subject 
to being tested for impairment at that date goodwill written off to reserves 
under uk gaap prior to 1998 has not been reinstated and is not included in 
determining any subsequent profit or loss on disposal
investments in associates
an associate is an entity over which the group has significant influence but not 
control or joint control through participation in the financial and operating policy 
decisions of the investee the results and assets and liabilities of associates 
are incorporated in these financial statements using the equity method of 
accounting investments in associates are carried in the balance sheet at cost 
as adjusted by post acquisition changes in the group’s share of the net assets 
of the associate less any impairment in the value of individual investments
intangible assets
intangible assets identified as part of the assets of an acquired business are 
capitalised separately from goodwill if the fair value can be measured reliably 
on initial recognition intangible assets are amortised to the income statement 
on a straightline basis over a maximum of 20 years except where they are 
considered to have an indefinite useful life in the latter instance they are 
reviewed annually for impairment
investment properties
investment properties which are held to earn rental income or for capital 
appreciation or for both are stated at deemed cost less depreciation 
properties are depreciated to their estimated residual value on a straightline 
basis over their estimated useful lives up to a maximum of 50 years 
rental income from investment property is recognised in the income 
statement on a straightline basis over the term of the lease
assets held for sale
assets held for sale are measured at the lower of carrying amount and fair 
value less costs to sell assets are held for sale if their carrying amount will be 
recovered through a sale transaction rather than continuing use this condition 
is regarded as met only when the sale is highly probable and the asset is 
available for sale in its present condition
 
property plant and equipment
property plant and equipment is stated at cost or deemed cost less 
accumulated depreciation and any impairment in value assets are depreciated 
to their estimated residual value on a straightline basis over their estimated 
useful lives as follows
●
   buildings – 50 years or if lower the estimated useful life of the building or 
the life of the lease
●
  plant and equipment – 4 to 10 years
●
  freehold land is not depreciated
assets held under finance leases are depreciated over their expected useful 
lives on the same basis as owned assets or where shorter the term of the 
relevant lease 
the gain or loss arising on the disposal or retirement of an asset is 
determined as the difference between the sale proceeds net of expenses and 
the carrying amount of the asset in the balance sheet and is recognised in 
the income statement where appropriate the attributable revaluation reserve 
remaining in respect of properties revalued prior to the adoption of ifrs is 
transferred directly to accumulated profits
leases
finance leases which transfer to the group substantially all the risks and 
benefits incidental to ownership of the leased item are capitalised at 
the inception of the lease at the fair value of the leased asset or if lower 
at the present value of the minimum lease payments lease payments are 
apportioned between the finance charges and reduction of the lease liability 
so as to achieve a constant rate of interest on the remaining balance of the 
liability finance charges are charged directly against income capitalised 
leased assets are depreciated over the shorter of the estimated useful life of 
the asset or the lease term leases where the lessor retains substantially all the 
risks and benefits of ownership of the asset are classified as operating leases 
operating lease rental payments are recognised as an expense in the 
income statement on a straightline basis over the lease term 
reverse lease premia and other incentives receivable for entering into 
a lease agreement are recognised in the income statement over the life of 
the lease
impairment of tangible and intangible assets excluding goodwill
the carrying amounts of the group’s tangible and intangible assets are 
reviewed at each balance sheet date to determine whether there is any 
indication of impairment if such an indication exists the asset’s recoverable 
amount is estimated and compared to its carrying value where the asset does 
not generate cash flows that are independent from other assets the group 
estimates the recoverable amount of the cashgenerating unit ‘cgu’ to which 
the asset belongs where the carrying value exceeds the recoverable amount 
a provision for the impairment loss is established with a charge being made 
to the income statement
for intangible assets that have an indefinite useful life the recoverable 
amount is estimated at each annual balance sheet date
impairment losses recognised in respect of a cgu are allocated first to 
reduce the carrying amount of any goodwill allocated to the cgu and then to 
reduce the carrying amount of the other assets in the unit on a prorata basis no tes t o the financial s tatement s
 
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inventories
inventories which consist of goods for resale are stated at the lower of 
average weighted cost and net realisable value cost comprises direct 
materials and where applicable direct labour costs and those overheads that 
have been incurred in bringing the inventories to their present location and 
condition net realisable value is the estimated selling price less the estimated 
costs of disposal
financial instruments
financial assets and liabilities are recognised in the balance sheet when the 
group becomes a party to the contractual provisions of the instrument
trade receivables
trade receivables are measured at amortised cost which is carrying amount 
less provision for irrecoverable amounts allowances for the estimated 
irrecoverable amounts are made in the income statement when the receivable 
is considered to be uncollectible
impairment of financial assets
financial assets are treated as impaired when in the opinion of the directors 
the likelihood of full recovery is diminished either by events or change of 
circumstance
cash and cash equivalents
cash and cash equivalents comprise cash balances and call deposits with an 
original maturity of three months or less 
bank and other borrowings
interest bearing bank loans and overdrafts loan notes and other loans are 
recognised in the balance sheet at amortised cost finance charges associated 
with arranging a bank facility are recognised in the income statement over 
the life of the facility all other borrowing costs are recognised in the income 
statement in the period in which they are incurred
trade payables
trade payables are measured at amortised cost
foreign currencies
transactions denominated in foreign currencies are recorded at the rates 
ruling on the date of the transaction
at the consolidated balance sheet date unhedged monetary assets 
and liabilities denominated in foreign currencies are translated at the rate 
of exchange ruling at that date foreign exchange differences arising on 
translation are recognised in the income statement
derivative financial instruments and hedge accounting
the group uses derivative financial instruments to hedge its exposure to 
interest rate and foreign exchange risks arising from financing activities the 
group does not enter into speculative financial instruments in accordance 
with its treasury policy the group does not hold or issue derivative financial 
instruments for trading purposes 
derivative financial instruments are stated at fair value the fair value of 
derivative financial instruments is the estimated amount the group would 
receive or pay to terminate the derivative at the balance sheet date taking into 
account current interest and exchange rates and the current creditworthiness 
of the counterparties 
changes in the fair value of derivative financial instruments that are 
designated and effective as hedges of the future variability of cash flows 
are recognised directly in equity and the ineffective portion is recognised 
immediately in the income statement
for an effective hedge of an exposure to changes in the fair value of a 
hedged item the hedged item is adjusted for changes in fair value attributable 
to the risk being hedged with the corresponding entry in the income statement 
for derivatives that do not qualify for hedge accounting any gains 
or losses arising from changes in fair value are taken to the income 
statement as they arise
derivatives embedded in commercial contracts are treated as separate 
derivatives when their risks and characteristics are not closely related to those 
of the underlying contracts with unrealised gains or losses being reported in 
the income statement 
the fair value of hedged derivatives is classified as a noncurrent asset or 
noncurrent liability if the remaining maturity of the hedge relationship is more 
than 12 months otherwise they are classified as current
foreign currency forward contracts are not designated effective hedges and 
so are marked to market at the balance sheet date with any gains or losses 
being taken through the income statement
financial assets and financial liabilities
financial assets are classified into the following specified categories financial 
assets at ‘fair value through profit or loss’ ‘fvtpl’ ‘availableforsale’ ‘afs’ 
financial assets and ‘loans and receivables’ the classification depends on the 
nature and purpose of the financial assets and is determined at the time of 
initial recognition
financial liabilities are classified as either financial liabilities ‘at fvtpl’ or 
‘other financial liabilities’ and trade and other payables
the group has defined the classes of financial assets to be other financial 
assets cash and borrowings and derivative financial instruments
financial assets and financial liabilities at fvtpl
financial assets and financial liabilities are classified as at fvtpl where 
the financial asset or the financial liability is either held for trading or it is 
designated as fvtpl
a financial asset or financial liability is classified as held for trading if it
●
   has been acquired principally for the purpose of selling or of disposal in the 
near future or
●
   is a part of an identified portfolio of financial instruments that the group 
manages together and has a recent actual pattern of shortterm profit
taking or
●
   is a derivative that is not designated and effective as a hedging instrument
financial assets and financial liabilities at fvtpl are stated at fair value with 
any resultant gain or loss recognised in the income statement unless it is an 
effective cash flow relationship the net gain or loss recognised in the income 
statement incorporates any interest earned or paid on the financial asset and 
financial liability respectively
loans and receivables
trade receivables and other receivables that have fixed or determinable 
payments that are not quoted in an active market are classified as loans and 
receivables loans and receivables are measured at amortised cost using the 
effective interest method less any impairment interest income is recognised 
by applying the effective interest rate except for shortterm receivables which 
applies to all amounts owed to the group when the recognition of interest 
would be immaterial 
other financial liabilities
other financial liabilities including borrowings are initially measured at fair  90
no tes t o the financial s tatement s
 
2038604 proof 2 310311
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value net of transaction costs other financial liabilities are subsequently 
measured at amortised cost using the effective interest method with interest 
expense recognised on an effective yield basis the effective interest method 
is a method of calculating the amortised cost of a financial liability and of 
allocating interest expense over the relevant period the effective interest is 
the rate that exactly discounts estimated future cash payments through the 
expected life of the financial liability or where appropriate a shorter period
derecognition of financial assets and financial liabilities
the group derecognises a financial asset only when the contractual rights to 
the cash flows from the asset expire or it transfers the financial asset and 
substantially all the risks and rewards of ownership of the asset to another 
entity if the group neither transfers nor retains substantially all the risks and 
rewards of ownership and continues to control the transferred asset the 
group recognises its retained interest in the asset and an associated liability 
for amounts it may have to pay if the group retains substantially all the risks 
and rewards of ownership of a transferred financial asset the group continues 
to recognise the financial asset and also recognises a collateralised borrowing 
for the proceeds received
the group derecognises financial liabilities when and only when the 
group’s obligations are discharged cancelled or they expire
taxation
the tax expense represents the sum of the tax currently payable and the 
deferred tax
the tax currently payable is based on taxable profit for the year taxable 
profit differs from net profit as reported in the income statement because it 
excludes items of income and expense that are taxable or deductible in other 
years and it further excludes items which are never taxable or deductible the 
group’s liability for current tax is calculated using tax rates that have been 
enacted or substantially enacted by the balance sheet date
deferred tax is the tax expected to be payable or recoverable on differences 
between the carrying amounts of assets and liabilities in the financial 
statements and the corresponding tax bases used in the computation of taxable 
profit this is accounted for using the balance sheet liability method deferred 
tax liabilities are generally recognised for all taxable temporary differences 
and deferred tax assets are recognised to the extent that it is probable that 
taxable profits will be available against which deductible temporary differences 
can be utilised such assets and liabilities are not recognised if the temporary 
difference arises from goodwill or from the initial recognition other than in 
a business combination of other assets and liabilities in a transaction that 
affects neither the tax profit nor the accounting profit
deferred tax is calculated at the tax rates that are expected to apply in the 
period when the liability is settled or the asset realised deferred tax is charged 
or credited in the income statement except when it relates to items charged 
or credited directly to equity in which case the deferred tax is also dealt with 
in equity
pensions and other postemployment benefits
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 finance income or as a finance cost within the income 
statement
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 
recognised income and expense
recoverable pension scheme surpluses and pension scheme deficits and 
the associated deferred tax balances are recognised in full in the period in 
which they occur and are included in the balance sheet
obligations for contributions to defined contribution pension plans are 
recognised as an expense in the income statement as incurred
employee share incentive plans
the group issues equitysettled sharebased payments to certain employees 
long term incentives executive share options and save as you earn these 
payments are measured at fair value at the date of grant by the use of 
the black scholes optionpricing model taking into account the terms and 
conditions upon which the options were granted the cost of equitysettled 
awards is recognised on a straightline basis over the vesting period based on 
the group’s estimate of the number of shares that will eventually vest 
provisions
a provision is recognised in the balance sheet when the group has a present 
legal or constructive obligation as a result of a past event and it is probable 
that an outflow of economic benefits will be required to settle the obligation 
provisions are measured at the directors’ best estimate of the expenditure 
required to settle the obligation at the balance sheet date and are discounted 
to present value where the effect is material
equity instruments and own shares 
the group has applied the requirements of ifrs 2 – share based payments 
in accordance with the transitional provisions ifrs 2 has been applied to all 
grants of equity instruments after 7 november 2002 that were unvested at 1 
january 2005
equity instruments represent the ordinary share capital of the group and 
are recorded at the proceeds received net of directly attributable incremental 
issue costs
consideration paid by the group for its own shares is deducted from total 
shareholders’ equity where such shares vest to employees under the terms 
of the group’s share incentive schemes or the group’s share save schemes or 
are sold any consideration received is included in shareholders’ equity
dividends
dividends proposed by the board of directors and unpaid at the period end are 
not recognised in the financial statements until they have been approved by 
shareholders at the annual general meeting
3 critical judgements and key sources of 
estimation and uncertainty
these consolidated financial statements have been prepared in accordance 
with ifrs as issued by the iasb the preparation of financial statements 
requires the directors to make estimates and assumptions about future events 
that affect the reported amounts of assets and liabilities and disclosure of 
contingent assets and liabilities future events and their effects cannot be 
determined with absolute certainty therefore the determination of estimates 
requires the exercise of judgement based on various assumptions and 
other factors such as historical experience current and expected economic 
conditions the directors constantly reevaluate these significant factors and 
make adjustments where facts and circumstances dictate the directors 
believe that the following accounting policies are critical due to the degree of 
estimation required and  or the potential material impact they may have on 
the group’s financial position and performance no tes t o the financial s tatement s
 
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inventory valuation 
inventories are stated at the lower of cost and net realisable value provisions 
for excess or obsolete inventory are recorded based upon assumptions about 
future demand and market conditions 
the level of inventory provisioning required is sensitive to changes in 
the forecast sales of particular products which is dependent on changes in 
conditions in the group’s markets if changes in actual market conditions are 
less favourable than those projected additional inventory provisions may be 
required similarly if changes in actual market conditions are more favourable 
than predicted it may be possible to release a proportion of the inventory 
provision 
debtor recoverability
the group provides credit to a significant number of its customers at each 
period end an assessment is made of the extent to which those customers may 
not pay amounts due to the group and a doubtful debt provision is established 
accordingly determining the likelihood of the group incurring bad debts 
requires the directors to exercise judgement to the extent this judgement 
ultimately proves to be inaccurate it would change the profit for the period 
provisions for returns and warranty claims
the products sold by the group are covered by warranties given to it by the 
suppliers from whom the goods are bought should any of those suppliers 
cease to trade then any liabilities for product warranties would rest with the 
group in such circumstances the directors would have to estimate the value 
of any provision required to meet the obligations of the group while the 
directors believe that the group’s warranty provisions are adequate and that 
the judgements applied are appropriate the ultimate cost of product warranty 
could differ significantly from the estimates 
income taxes
the group is subject to the income tax laws of the united kingdom these 
laws are complex and subject to different interpretations by taxpayers and 
tax authorities when establishing income tax provisions the directors make 
a number of judgements and interpretations about the application and 
interaction of these laws changes in these tax laws or in their interpretation 
could impact the group’s effective tax rate and the results of operations in 
a given period 
the process of estimating the group’s tax position requires an assessment 
of temporary differences resulting from differing treatment of items for tax 
and accounting purposes these differences result in the recognition of 
deferred tax assets and liabilities deferred tax assets are included within the 
consolidated balance sheet to the extent that the directors believe they are 
recoverable in recognising deferred tax assets the group considers profit 
forecasts including the effect of exchange rate fluctuations on sales and 
external market conditions 
management’s judgement is required in determining the provision for 
income taxes deferred tax assets and liabilities deferred tax assets have been 
recognised where the directors believe there are sufficient taxable temporary 
differences or convincing other evidence that sufficient taxable profit will be 
available in future to realise deferred tax assets although the deferred tax 
assets which have been recognised are considered realisable actual amounts 
could be reduced if future taxable income is lower than expected this can 
materially affect the group’s reported net income and financial position 
goodwill and intangible assets
in testing for impairment the directors have made certain assumptions 
concerning the future development of the business that are consistent with 
its annual budget and threeyear plan whilst the directors consider these 
assumptions are realistic should these assumptions regarding the growth in 
profitability be unfounded then it is possible that the value of goodwill and 
intangible assets included in the balance sheet could be impaired further 
details concerning the impairment of goodwill and intangible assets are given 
in note 14 
pension liabilities
the group has chosen to adopt assumptions that the directors believe are 
generally in line with the median for comparable companies if the future 
return on equities is lower than anticipated or if the difference between 
actual inflation and the actual increase in pensionable salaries is greater 
than that assumed if long term interest rates were lower than assumed or if 
the average life expectancy of pensioners increases then the pension deficit 
would be greater than currently stated in the balance sheet
 
property leases
the group is party to a number of leases on properties that are no longer 
required for trading whilst every effort is made to profitably sublet these 
properties it is not always possible where a lease is onerous to the group 
a provision is established for the difference between amounts contractually 
payable to the landlord and to local authorities and amounts contractually 
receivable from the tenant if any for the period up until the point it is judged 
that the lease will no longer be onerous
the directors believe that their estimates which are based upon the current 
state of the uk property market are appropriate however it is possible that 
it may take longer to dispose of leases than they anticipate as a result the 
provisions may be understated but in the opinion of the directors this is unlikely 
to be material
insurance provisions
the group has been substantially selfinsured since 2001 the nature of 
insurance claims is that they frequently take many years to fully crystallise 
therefore the directors have to estimate the value of provisions to hold in 
the balance sheet in respect of historic claims under the guidance of the 
group’s insurance advisors the value of incurred claims is estimated using 
the generalised cape cod method the provision is determined by deducting 
the value of claims settled to date from the estimated level of claims incurred 
whilst the generalised cape cod method is an insurance industry standard 
methodology it relies on historic trends to determine the level of expected 
claims to the extent that the estimates are inaccurate the group may be 
underprovided but in the opinion of the directors any underprovision is 
unlikely to be material
fair value adjustments
the directors are in the process of undertaking a fair value exercise in respect 
of assets and liabilities of the bss group plc note 30 in some circumstances 
this exercise requires judgements to be made the accuracy of which will 
be determined by the passing of time as the exercise is incomplete further 
adjustments may be made in the 2011 annual report and accounts 92
no tes t o the financial s tatement s
 
2038604 proof 2 310311
92
4 revenue
 
 the group the company
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 2010 2009 2010 2009 
 £m £m £m £m
sale of goods 31528 29309  
management charges   69 69
dividends from subsidiaries   403 1224
 31528 29309 472 1293
other operating income 154 488  
finance income 175 56 155 49
 31857 29853 627 1342
5 profit
a operating profit
 the group the company
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 2010 2009 2010 2009 
 £m £m £m £m 
revenue 31528 29309 472 1293
cost of sales 20815 19444  
gross profit 10713 9865 472 1293
selling and distribution costs 6758 6498  
administrative expenses 1890 1250 288 167
other operating income 154 488  
share of results of associate 21 32  
operating profit 2198 2573 184 1126
exceptional items 190 327 134 
amortisation of intangible assets 02   
adjusted operating profit  2390 2246 318 1126
exceptional items
on 14 december 2010 the group acquired 100 of the issued share capital of the bss group plc ‘bss’ for total consideration of £6239m as required by ifrs 
3 2008 £13m of costs incurred in making the acquisition and £81m of nonfair value charges incurred in respect of assets written out of the opening bss group 
balance sheet have been charged to the income statement as exceptional items and included in administrative expenses offset against the exceptional charges 
is the release of £21m of onerous lease provisions which were originally established in 2008 as exceptional charges to the income statement the net total of 
exceptional items is £190m
with effect from the 1 december 2009 the company and the trustees of the travis perkins defined benefits pension scheme agreed to amend the terms of the 
scheme to include a cap on future pensionable salary increases of 3 per annum this was treated as a curtailment event and the resulting exceptional reduction 
of £327m in the benefit obligation was included in other operating income in 2009
as required by ifrs 3 2008 £134m of costs incurred in making the acquisition of bss have been charged to the company income statement as an exceptional 
item and included in administrative expenses
to enable readers of the financial statements to obtain a clear understanding of underlying trading the directors have shown the exceptional items separately 
in the group income statement  no tes t o the financial s tatement s
 
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5 profit continued
operating profit has been arrived at after charging  crediting
 the group the company
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 2010 2009 2010 2009 
 £m £m £m £m
provisions against inventories 57 04    
cost of inventories recognised as an expense 20758 19448  
pension costs in administration expenses 29 28  13 03
pension costs in selling and distribution costs 64 62    
depreciation of property plant and equipment 575 587 01 01
staff costs see note 7 4125 3603 86 91
gain on disposal of property plant and equipment 113 120  
rental income 43 49  
hire of vehicles plant and machinery 167 136   
other leasing charges – property 1375 1324   
amortisation of intangible assets 02   
auditor’s remuneration for audit services 04 03 01 01
during the year the group incurred the following costs for services provided by the company’s auditors 
  the group
  –––––––––––––––––––––––––
   2010 2009 
   £000 £000
fees payable to the company’s auditors for the audit of the company’s annual accounts   108 104
fees paid to the company’s auditors for other services  
the audit of the company’s subsidiaries pursuant to legislation   296 234
other services pursuant to legislation   20 18
other services relating to taxation – advisory   216 85
corporate finance transactions – rights issue    414
corporate finance transactions – acquisition of bss   445 
other services   8 5
   1093 860
other services pursuant to legislation includes £10000 2009 £9000 which was paid to the auditors by the travis perkins pension and dependents benefit scheme 
a description of the work of the audit committee is set out in the audit committee report on pages 58 to 60 and includes an explanation of how auditor 
objectivity and independence is safeguarded when nonaudit services are provided by the auditors
b adjusted profit before and after tax
  the group
  –––––––––––––––––––––––––
   2010  2009 
   £m £m
profit before tax   1968 2127
exceptional items    197 327
amortisation of intangible assets   02 
adjusted profit before tax   2167 1800
  the group
  –––––––––––––––––––––––––
   2010  2009 
   £m £m
profit after tax   1413 1574
exceptional items   197 327
tax on exceptional items   19 92
amortisation of intangible assets   02 
effect of reduction in corporation tax rate on deferred tax   24 
adjusted profit after tax    1569 1339 94
no tes t o the financial s tatement s
 
2038604 proof 2 310311
94
5 profit continued
c adjusted operating margin
 merchanting retail unallocated group prebss bss group
 ––––––––––––––– ––––––––––––––– ––––––––––––––– ––––––––––––––– ––––––––––––––– –––––––––––––––
 2010  2009 2010  2009 2010  2009  2010  2009 2010  2009 2010  2009 
 £m £m £m £m £m £m £m £m £m £m £m £m
revenue 21065 19502 10029 9807   31094 29309 434  31528 29309
operating profit 1741 2035 587 570   2328 2605 109  2219 2605
share of 
associate losses     21 32 21 32   21 32
amortisation of
intangible assets         02  02 
exceptional items 103 327 06    109 327 81  190 327
adjusted segment 
result 1844 1708 593 570 21 32 2416 2246 26  2390 2246
adjusted 
operating margin 876 876 591 581   777 766 599  758 766
the segmental results for merchanting and retail are shown in note 6 
6 business and geographical segments
for management purposes the group was prior to the acquisition of the bss group plc organised into two operating divisions – merchanting and retailing 
both of which operate entirely in the united kingdom following the acquisition of the bss group plc the group will report a third segment bss which operates 
mainly in the united kingdom as required by ifrs 8 the operating segments are identified on the basis of internal reports about components of the group that are 
regularly reviewed by the chief executive to assess their performance segment profit represents the profit earned by each segment without allocation of share of 
losses of associates finance income and costs and income tax expense
there are no significant intersegment sales
during 2010 and 2009 other than in respect of fair value adjustments and exceptional charges made in respect of bss assets there were no impairment losses 
or reversals of impairment losses recognised in profit or loss or in equity in any of the reportable segments
  2010
  –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
  merchanting retail bss unallocated  eliminations consolidated 
 £m £m £m £m £m £m
revenue 21065 10029 434   31528
result      
segment result 1741 587 109   2219
share of associate losses    21  21
finance income    175  175
finance costs    405  405
profit before taxation 1741 587 109 251  1968
taxation    555  555
profit for the year 1741 587 109 806  1413
segment assets 25438 14985 11284 3088 14013 40782
segment liabilities 8656 2153 4661 19807 14013 21264
consolidated net assets 16782 12832 6623 16719  19518
capital expenditure 445 72  02  519
amortisation   02   02
depreciation 433 137 05   575 no tes t o the financial s tatement s
 
2038604 proof 2 310311
95
6 business and geographical segments continued 
 
  2009
  ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
   merchanting retail unallocated  eliminations consolidated 
  £m £m £m £m £m
revenue  19502 9807   29309
result     
segment result  2035 570   2605
share of associate losses    32  32
finance income      56  56
finance costs      502  502
profit before taxation  2035 570 478  2127
taxation    553  553
profit for the year  2035 570 1031  1574
segment assets  22345 14388 5245 10550 31428
segment liabilities  7257 2375 17742 10550 16824
consolidated net assets  15088 12013 12497  14604
capital expenditure  160 161   321
depreciation  441 146   587
7 staff costs 
a the average monthly number of persons employed including executive directors
 the group the company
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 2010 2009 2010 2009 
 no no no no 
sales 11880 11196  
distribution 2345 1885  
administration 1567 1447 42 37
 15792 14528 42 37
b aggregate remuneration
 the group the company
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 2010 2009 2010 2009 
 £m £m £m £m 
wages and salaries 3686 3296 55 60
share based payments 81 15 23 21
social security costs 358 322 05 08
other pension costs note 8 93 90 16 02
 4218 3693 99 91 96
no tes t o the financial s tatement s
 
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8 pension arrangements
defined benefit schemes
prior to the acquisition of the bss group plc the group operated a final salary scheme the travis perkins pensions and dependants benefit scheme ‘the tp 
scheme’ which is a 160th scheme the tp scheme is funded by contributions from group companies and employees contributions are paid to the trustees on 
the basis of advice from an independent professionally qualified actuary who carries out a valuation of the scheme every three years
employees are entitled to start drawing a pension based on their membership of the scheme on their normal retirement date if employees choose to retire 
early and draw their pension then the amount they receive is scaled down accordingly
a full actuarial valuation of the tp scheme was carried out on 30 september 2008 the ias 19 valuation has been based upon the results of the 30 september 
2008 valuation then updated to 31 december 2010 by a qualified actuary the present values of the defined obligations the related current service costs and the 
past service costs for the scheme were measured using the projected unit method
following the acquisition of the bss group plc the group now operates three additional defined benefit pension schemes ‘the bss schemes’ based on final 
pensionable salary the assets of the schemes are held separately from those of the group in funds under the control of the schemes trustees all defined benefit 
schemes are closed to new members the most recent actuarial valuations of the scheme assets and the present value of the defined benefit obligation were 
carried out at 1 june 2009 for the main uk and irish schemes and 31 december 2008 for the secondary uk scheme the present value of the defined benefit 
obligation and the related current service cost and past service cost were measured using the projected unit method with a control period equal to the future 
working lifetime of the active members
in june 2010 an agreement was reached with the trustees of the travis perkins final salary pension scheme to fund £347m of the deficit using a group 
controlled special purpose vehicle the pension scheme will be entitled to receive the income of the spv for a period of up to 20 years subject to funding levels 
this income is backed by the security of 16 travis perkins freehold properties as the spv is consolidated into the travis perkins plc group accounts advantage has 
been taken of regulation 7 of the partnership accounts regulations 2008 and accounts for the spv will neither be audited or filed
a major assumptions used by the actuary at the balance sheet date in nominal terms 
    
  at 31 december 2010 at 31 december 2010 at 31 december 2009
 tp scheme bss schemes tp scheme
rate of increase in pensionable salaries 25 35 25
rate of increase of pensions in payment 24 35 24
discount rate 535 535 57
inflation assumption 35 35 35
in respect of longevity the valuation adopts the pmapfa92 tables with improvements in life expectancy to continue in the medium term with base year appropriate 
to the member’s date of birth this results in the following life expectancies at illustrative ages
weighted average life expectancy for mortality tables used to determine pension liability at 31 december 2010   
 male years female years
member age 65 current life expectancy – tp scheme 216 248
member age 45 life expectancy on reaching age 65 – tp scheme 235 267
member age 65 current life expectancy – bss schemes 218 250
member age 45 life expectancy on reaching age 65 – bss schemes 238 271
b amounts recognised in income in respect of the defined benefit schemes
   2010 2009
 –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
 tp scheme bss schemes group 
 £m £m £m £m
current and past service costs charged to operating profit
in the income statement 57  57 58
interest cost 322  322 304
effect of curtailment    327
expected return on scheme assets 384  384 278
total pension costs 05  05 243
the total charge to the profit and loss account disclosed in note 7 of £93m 2009 £90m comprises defined benefit scheme current and past service costs of 
£57m 2009 £58m and £36m 2009 £32m of contributions made to the defined contribution schemes
the company and trustee agreed to amend the benefits of the tp scheme with effect from 1 december 2009 to include a cap on future pensionable salary 
increases of 3 per annum this was treated as an exceptional curtailment event and the resulting reduction in the benefit obligation was included as a curtailment 
gain in 2009 note 5
the directors have agreed with the scheme actuary and the trustees to pay contributions of £160m in 2011 in excess of the forecast charge to the income 
statement to the tp scheme in addition agreement has been made to pay £32m in respect of the bss schemes
note 5 shows where pension costs have been charged in the income statement actuarial gains and losses have been included in the statement of comprehensive 
income no tes t o the financial s tatement s
 
2038604 proof 2 310311
97
8 pension arrangements continued
c assets and liabilities in the schemes and the expected rate of return net of allowance for administration expenses
tp scheme
 at 31 december 2010 at 31 december 2009
 ––––––––––––––––––––––––––––––– –––––––––––––––––––––––––––––––
 expected fair value expected fair value 
  return £m  return £m
equities 825 3822 805 3282
bonds gilts and cash  450  570 1506 430  630 1523
pensions spv 50 362  
property 65 744 630 476
total fair value of assets  6434  5281
actuarial value of liability  6117  5711
surplus  deficit in scheme  317  430
related deferred tax liability  asset  86  120
net pension asset  liability  231  310
bss schemes
  at 31 december 2010
  –––––––––––––––––––––––––––––––
   expected  fair value 
   return £m
equities   825 1517
bonds gilts and cash    450  570 140
property   62 38
total fair value of assets    1695
actuarial value of liability    2291
deficit in schemes    596
related deferred tax asset    164
net pension liability    432
tp scheme
 2010 2009
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 £m  £m 
the actual returns on scheme assets 729 138 901 214
    
d the amount included in the balance sheet arising from the group’s obligations in respect of its defined benefit schemes and the 
movements during the year
 2010 2009
 ––––––––––––––––––––––––––––––––––––––––––––––––
 tp bss  
 scheme schemes  group 
 £m £m  £m £m
at 1 january 430   430 699
liability at date of acquisition  596 596 
expense recognised in the income statement 05   05 243
contributions received by the scheme 583   583 309
actuarial losses recognised in the statement of comprehensive income 159   159 283
at 31 december 317 596 279 430 98
no tes t o the financial s tatement s
 
2038604 proof 2 310311
98
8 pension arrangements continued
e movements in the present value of defined benefit obligations in the current period
 2010 2009
 –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
 tp scheme bss schemes group 
 £m £m £m £m
at 1 january 5711  5711 4906
liability at date of acquisition  2291 2291 
service cost 57  57 58
interest cost 322  322 304
contributions from scheme members 55  55 54
curtailment gain    327
actuarial losses 186  186 906
benefits paid 214  214 190
at 31 december  6117 2291 8408 5711
f movements in the present value of fair value of scheme assets in the current period
 2010 2009
 –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
 tp scheme bss schemes group 
 £m £m £m £m
at 1 january  5281  5281 4207
scheme assets at date of acquisition  1695 1695 
expected return of scheme assets 384  384 278
actuarial gains  345  345 623
contributions from sponsoring companies 583  583 309
contributions from scheme members 55  55 54
benefits paid 214  214 190
at 31 december  6434 1695 8129 5281
g cumulative actuarial gains and losses recognised in equity 
   2010 2009 
   £m £m
at 1 january   1980 1697
net actuarial losses recognised in the year   159 283
at 31 december   1821 1980
h history of experience gains and losses
tp scheme  2010 2009 2008 2007 2006
fair value of scheme assets £m  6434 5281 4207 5339 5005
present value of scheme obligations £m  6117 5711 4906 5499 5813
surplus  deficit in the scheme £m  317 430 699 160 808
experience adjustments on scheme liabilities      
amounts £m    134  
percentage of scheme liabilities     27  
experience adjustments on scheme assets       
amounts £m  345 623 1572 135 147
percentage of scheme assets   54 118 374 25 29 no tes t o the financial s tatement s
 
2038604 proof 2 310311
99
8 pension arrangements continued
i sensitivities
the estimated effects of changing the key assumptions discount rate inflation and life expectancy on the ias19 balance sheet position as at 31 december 2010 
and on projected amounts to be recognised in the income statement for 2011 are
  tp scheme effect on   bss schemes effect on  
assumption   2010 balance sheet position  2010 balance sheet position
discount rate increase of 10 1084 414
 decrease of 10 1317 562
inflation increase of 10 884 508
 decrease of 10 773 389
longevity increase of 1 year 135 51
 decrease of 1 year 132 51
the impact of the change from rpi to cpi is a reduction in liabilities of £25m 
j defined contribution schemes
prior to the acquisition of the bss group plc there were two defined contribution schemes in the group the bss group plc operates a further three defined 
contribution schemes for all qualifying employees the pension cost which represents contributions payable by the group amounted to £36m 2009 £32m
9 sharebased payments 
the following disclosures relate to share option and saye grants made after 7 november 2002
the blackscholes optionpricing model is used to calculate the fair value of the options and the amount to be expensed the probability of the performance 
conditions being achieved was included in the fair value calculations the inputs into the model for options granted in the year expressed as weighted averages 
are as follows 
 
 2010 2009
 ––––––––––––––––––––––––– –––––––––––––––––––––––––––––––––––––––––––––
    nil price    executive  nil price  
  saye options  saye  options options
share price at grant date pence – group  819 734 794 653 616
option exercise price pence – group  691  636 663 
share price at grant date pence – company  819 734 794 653 616
option exercise price pence – company  691  636 663 
volatility  – group and company  595 621 507 610 601
option life years – group and company  35 30 35 30 30
riskfree interest rate  – group and company  16 13 21 22 24
expected dividends as a dividend yield  – group and company 06 06 20 16 16
volatility was based on historic share prices over a period of time equal to the vesting period option life used in the model has been based on options being 
exercised in accordance with historical patterns for executive share options the vesting period is 3 years if options remain unexercised after a period of 10 years 
from the date of grant these options expire options are forfeited if the employee leaves the group before options vest saye options vest after 3 or 5 years and 
expire 3½ or 5½ years after the date of grant 
the riskfree interest rate of return is the yield on zerocoupon uk government bonds on a term consistent with the vesting period dividends used are based 
on actual dividends where data is known and future dividends estimated using a dividend cover of 3 times 
the expected life used in the model has been adjusted based upon management’s best estimate for the effect of nontransferability exercise restrictions and 
behavioural considerations 100
no tes t o the financial s tatement s
 
2038604 proof 2 310311
100
9 sharebased payments continued
the number and weighted average exercise price of share options is as follows
the group
 2010 2009
 –––––––––––––––––––––––––––––––––––––––––––––––––– –––––––––––––––––––––––––––––––––––––––––––––––––
 weighted   number of weighted    number of 
 average  number of nil price average number of nil price 
 exercise price options  options exercise price options  options 
in thousands of options p no no p no no
outstanding at the beginning of the period 680 9624 2959 935 8190 790
rights issue adjustment    187 1885 467
forfeited during the period 1247 1580 2 1001 2064 246
exercised during the period 511 19  583 8 
granted during the period 691 892 1497 645 1621 1948
outstanding at the end of the period 582 8917 4454 680 9624 2959
exercisable at the end of the period 1116 1004  1117 1055 
share options were exercised on a regular basis throughout the year the weighted average share price for options exercised during the year was 511 pence 
2009 583 pence
details of the options outstanding at 31 december 2010 were as follows
 2010 2009
 –––––––––––––––––––––––––––––––––––––––––––––––––– –––––––––––––––––––––––––––––––––––––––––––––––––
 executive   nil price  executive   nil price 
 options saye options options saye options
range of exercise prices pence 201  1611 422  1114  201  1611 442  1114 
weighted average exercise price pence 667 532  976 518 
number of shares thousands 3302 5615 4454 4380 5244 2959
weighted average expected remaining life years 14 21 15 21 27 22
weighted average contractual remaining life years 67 26 85 77 32 92
the company
 2010 2009
 –––––––––––––––––––––––––––––––––––––––––––––––––– –––––––––––––––––––––––––––––––––––––––––––––––––
 weighted   weighted
  average  number of nil price  average number of nil price 
 exercise price  options options exercise price  options options 
in thousands of options p no no p no no
outstanding at the beginning of the period 980 701 1480 1341 693 449
rights issue adjustment    271 148 285
forfeited during the period 1550 232  1550 168 133
transferred from  to other group companies 596 1  442 1 
granted during the period 691 3 686 653 29 879
outstanding at the end of the period 698 473 2166 980 701 1480
exercisable at the end of the period 1018 239  1018 239 
there were no share options exercised during the year details of the options outstanding at 31 december 2010 were as follows
 2010 2009
 –––––––––––––––––––––––––––––––––––––––––––––––––– –––––––––––––––––––––––––––––––––––––––––––––––––
 executive   nil price  executive   nil price 
 options saye options options saye options
range of exercise prices pence 201  1611 442  1114  201  1611 442  1114 
weighted average exercise price pence 727 479  1021 970 
number of shares thousands 418 55 2166 649 52 1480
weighted average expected remaining life years 08 25 15 12 35 21
weighted average contractual remaining life years 51 30 85 65 40 91 no tes t o the financial s tatement s
 
2038604 proof 2 310311
101
9 sharebased payments continued
the group and the company
saye options were granted on 1 december 2010 the estimated fair value of the shares at that date was £36m for the group and nil for the company
shares were granted under the share matching scheme on 16 march 2010 the estimated fair value of the shares at that date was £34m for the group and 
£20m for the company
shares were granted under the performance share plan on 5 march 20 may and 27 august 2010 the estimated fair value of the shares at those dates were 
£45m for the group and £15m for the company
shares were granted under the deferred share bonus plan on 3 march 2010 the estimated fair value of the shares at that date was £08m for the group and 
£04m for the company 
the group charged £80m 2009 credit £15m and the company charged £23m 2009 £21m to the income statement in respect of equitysettled share
based payment transactions
10 net finance costs
 the group the company
 –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– –––––––––––––––––––––––––
 2010 2010 2010 2009 2010 2009 
 preexceptional  exceptional     
 items  items total    
 £m £m £m £m £m £m
interest on bank loans and overdrafts 278 07 285 291 315 285
interest on unsecured loans 02  02 02 02 02
interest payable to group companies     35 27
interest on obligations under finance leases 12  12 13  
other finance charges – pension scheme    26  
unwinding of discounts in provisions 42  42 38  
amortisation of cancellation payment for swaps
accounted for as cash flow hedges 49  49 87 49 87
cancellation of swaps measured at fair value    08  08
net loss on remeasurement of derivatives at fair value 15  15 37 20 30
finance costs 398 07 405 502 421 439
other finance income – pension scheme 62  62   
amortisation of cancellation receipt for swap
accounted for as fair value hedge 09  09  36 
interest receivable 104  104 56 119 49
finance income 175  175 56 155 49
net finance costs 223 07 230 446 266 390
adjusted interest cover   189x 107x  
includes £57m 2009 £29m of amortised bank finance charges
adjusted interest cover is calculated by dividing adjusted operating profit of £2390m 2009 £2246m less £12m 2009 £13m of specficially excluded 
ifrs adjustments by the combined value of interest on bank loans and overdrafts excluding amortised bank finance charges unsecured loans and interest 
receivable which total £126m 2009 £208m 
the unwinding of the discount charge arises principally from the property provisions created in 2008 and the pensions spv
included in interest on bank loans and overdrafts are fair value and exchange gains on the us private placement of £31m offset by a £31m loss on hedged 
derivatives
included within finance costs is an exceptional charge of £07m arising from the write off of unamortised bank fees in respect of the bss loan facility which 
was repaid following the acquisition 102
no tes t o the financial s tatement s
 
2038604 proof 2 310311
102
11 tax
 the group the company
 ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– –––––––––––––––––––––––––
 2010 2010 2010 2009 2009 2009 2010 2009 
 pre   pre     
 exceptional exceptional  exceptional exceptional    
 items items total items items total
 £m £m £m £m £m £m £m £m
current tax        
uk corporation tax         
current year 510 04 514 473  473 85 122
prior year 12  12 09  09  
total current tax 498 04 502 464  464 85 122
deferred tax        
current year 101 47 54 03 92 89 19 29
prior year 01  01     
total deferred tax 100 47 53 03 92 89 19 29
total tax charge 598 43 555 461 92 553 104 151
the differences between the total tax charge shown above and the amount calculated by applying the standard rate of uk corporation tax to the profit before tax 
are as follows
the group 
 2010 2009
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 £m  £m 
profit before tax 1968  2127 
tax at the uk corporation tax rate of 280 551 280 596 280
tax effect of expenses  credits that are not deductible  
taxable in determining taxable profit 21 10 19 09
depreciation of nonqualifying property 15 08 15 07
exceptional costs not allowable for tax purposes 36 18  
deferred tax rate change 24 12  
property sales 32 16 30 14
prior period adjustment 12 06 09 04
tax expense and effective tax rate for the year 555 282 553 260
the tax charge for 2010 includes an exceptional credit of £24m arising from the reduction in the rate of uk corporation tax from 28 to 27 on 6 april 2011 
future changes reducing the corporation tax rate by 1 per annum to 24 by 1 april 2014 have been announced but not substantively enacted and therefore 
have not been taken into account
the company
 2010 2009
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 £m  £m 
loss  profit before tax 82  736 
intercompany dividends 403  1224 
loss before tax and dividends received 485  488 
tax at the uk corporation tax rate of 280 136 280 137 280
tax effect of expenses  credits that are not deductible  
taxable in determining taxable profit 17 35 14 29
exceptional costs not allowable for tax purposes 36 74  
receipts in subsidiary taxable in company 13 27  
tax expense and effective tax rate for the year 104 214 151 309 no tes t o the financial s tatement s
 
2038604 proof 2 310311
103
12 earnings per share
the group and the company
a basic and diluted earnings per share
   2010 2009 
   £m £m
earnings
earnings for the purposes of basic and diluted earnings per share being net profit 
attributable to equity holders of the parent company   1413 1574
number of shares   no no
weighted average number of shares for the purposes of basic earnings per share prerights issue 
adjustment and bss acquisition share issue   201682453 117034434
rights issue adjustment    61001501
issued in connection with the bss acquisition   1444926 
weighted average number of shares for the purposes of basic earnings per share   203127379 178035935
dilutive effect of share options on potential ordinary shares   7099195 4427564
weighted average number of ordinary shares for the purposes of diluted earnings per share  210226574 182463499
at 31 december 2010 2450045 2009 3913130 share options had an exercise price in excess of the market value of the shares on that day as a result these 
share options are excluded from the calculation of diluted earnings per share
b adjusted earnings per share
adjusted earnings per share are calculated by excluding the effect of the exceptional items and amortisation from earnings
   2010 2009 
   £m £m
earnings for the purposes of basic and diluted earnings per share being net profit 
attributable to equity holders of the parent company   1413 1574
exceptional items   197 327
amortisation of intangible assets   02 
tax on exceptional items   19 
effect of reduction in corporation tax rate on deferred tax   24 92
earnings for adjusted earnings per share   1569 1339
adjusted basic earnings per share   772p 752p
adjusted diluted earnings per share   746p 734p
c adjusted prebss earnings per share
   2010 2009 
   £m £m
earnings for adjusted earnings per share   1569 1339
bss post tax loss for the period   20 
earnings for adjusted earnings per share prebss   1589 1339
adjusted basic earnings per share prebss   788p 752p 104
 
2038604 proof 2 310311
104
no tes t o the financial s tatement s
13 dividends
the group and the company
amounts were recognised in the financial statements as distributions to equity shareholders as follows
   2010 2009 
   £m £m
final dividend for the year ended 31 december 2009 of nil p 2008 nil p per ordinary share    
interim dividend for the year ended 31 december 2010 of 50p 2009 nil p per ordinary share  101 
total dividends recognised during the year   101 
the company is proposing a final dividend of 10p in respect of the year ended 31 december 2010
adjusted dividend cover of 51x 2009 nil is calculated by dividing adjusted basic earnings per share note 12 of 772 pence 2009 752 pence by the total 
dividend for the year of 150 pence 2009 nil pence
there are no income tax consequences in respect of the dividends declared but not recognised in the financial statements
the dividends declared for 2010 at 31 december 2010 and for 2009 at 31 december 2009 were as follows
   2010 2009 
   pence pence
interim paid   50 
final proposed   100 
total dividends declared for the year   150 
14 goodwill
the group
  bss retail merchanting total
  ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
  £m £m £m £m
cost    
at 1 january 2009  9699 3815 13514
recognised on acquisitions during the year   14 14
at 1 january 2010  9699 3829 13528
recognised on acquisitions during the year 3376   3376
at 31 december 2010 3376 9699 3829 16904
the following is an analysis of goodwill by cgu ‘cash generating unit’ 
name of cgu    amount of goodwill
    £m
ccf    436
city plumbing supplies    742
keyline    790
tile giant    268
travis perkins    4361
wickes    6931
bss    3376
    16904
on the acquisition of the wickes’ business £250m of goodwill which represented synergies arising from the acquisition was allocated to the travis perkins cgu
the group tests goodwill annually for impairment or more frequently if there are indications that goodwill might be impaired the recoverable amounts of the 
cgus are determined from value in use calculations the key assumptions for the value in use calculations are those regarding the discount rates growth rates 
and expected changes to selling prices and direct costs during the period these assumptions have been reviewed during the year in light of the current economic 
environment which has resulted in more conservative estimates about the future and the changing capital structure of the company management estimates  no tes t o the financial s tatement s
 
2038604 proof 2 310311
105
discount rates using pretax rates that reflect current market assessments of the time value of money and the risks specific to the cgus as a result of these 
deliberations the discount rate has been amended to reflect changes in the capital structure arising from the rights issue 
the turnover growth rates in each cgu are based on the directors’ expectations for the next 3 years changes in selling prices and direct costs used in the 
calculations are based on past practices and expectations of future changes in the market 
at the beginning and end of the financial period the fair value of goodwill and intangible assets in all segments was in excess of their book value the directors’ 
calculations have shown that no impairments have occurred the key assumptions applied in the value in use calculations were
●
   cash flow forecasts which were derived from the most recent financial budgets and plans for the three years ending 2013 which were approved by the directors 
cash flows for the following year are extrapolated from cash flows for 2013 using similar assumptions to those applied to 2013
●
   the weighted average cost of capital ‘wacc’ of the group which is used as the discount rate is 81 which is not significantly different for any individual cgu
●
   longterm forecast growth rates of 25 in line with the average longterm gdp growth trend applied from 2014 onwards 
whilst management believe the assumptions are realistic it is possible an impairment would be identified if any of the above key assumptions were changed 
significantly for instance factors which could cause an impairment are
●
  significant underperformance relative to the forecast results
●
   changes to the way the assets are used or changes to the strategy for the business
●
  a deterioration in the industry or the economy
the impairment review calculations are based upon anticipated discounted future cash flows these calculations are sensitive to changes in future cash flows 
the discount rate applied and the terminal growth rate the directors believe the assumptions used are appropriate but have conducted a sensitivity analysis to 
determine the assumptions that would result in an impairment to goodwill and intangibles of £100m
 merchanting  retail
weighted average cost of capital    158 108
long term growth rate    90 09
the goodwill arising on the acquisition of bss on 14 december 2010 did not suffer an impairment during the two weeks of ownership by the group 
the company has no goodwill
15 other intangible assets
 
the group
 brand computer software customer relationships total
 ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
cost or valuation £m £m £m £m
 
at 1 january  31 december 2009 1625   1625
acquired on acquisition of subsidiary 1129 96 1348 2573
at 31 december 2010 2754 96 1348 4198
amortisation    
at 1 january  31 december 2009    
charged to operating profit in the year   02 02
charged to exceptional items  81  81
at 31 december 2010  81 02 83
net book value    
at 31 december 2010 2754 15 1346 4115
at 31 december 2009 1625   1625
following the acquisition of the bss group plc the following brands were acquired 
●
  pts £386m
●
  bss £516m
●
  f  p wholesale £85m
●
  others £142m
these brands together with the wickes brand which accounts for the remainder are all considered to be leading brands in their sectors with significant growth 
prospects they are considered therefore to have an indefinite useful life and are reviewed annually for impairment acquired customer relationships are amortised 
over their estimated useful lives which range from 5 to 15 years
details of impairment testing are given in note 14 no impairments were identified in either year
the company has no intangible assets
 
14 goodwill continued 106
no tes t o the financial s tatement s
 
2038604 proof 2 310311
106
16 property plant and equipment
 the group the company
 ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– –––––––––––––––––––
  long short plant   plant 
 freehold  leases  leases equipment total equipment
 £m £m £m £m £m £m
cost or valuation
at 1 january 2009 2644 254 1039 4092 8029 05
additions 21  120 180 321 
reclassifications 04 04    
disposals 88  21 160 269 
at 1 january 2010 2581 250 1138 4112 8081 05
additions 108 27 21 363 519 02
additions from acquired businesses 71 10 61 223  365 
reclassifications to current assets 03 10   13 
disposals 11  10 136 157 01
at 31 december 2010 2746 277 1210 4562 8795 06
accumulated depreciation
at 1 january 2009 288 37 303 2056 2684 03
charged this year 40 06 68 472 586 01
disposals 12  20 147 179 
at 1 january 2010 316 43 351 2381 3091 04
charged this year 40 06 70 459 575 01
reclassifications to current assets 01 03   04 
disposals 04  04 119 127 
at 31 december 2010 351 46 417 2721 3535 05
net book value
at 31 december 2010 2395 231 793 1841 5260 01
at 31 december 2009 2265 207 787 1731 4990 01
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 688 61 19  768 
at cost 2058 216 1191 4562 8027 06
 2746 277 1210 4562 8795 06
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 £980m 2009 £947m which is not depreciated no tes t o the financial s tatement s
 
2038604 proof 2 310311
107
16 property plant and equipment continued
the carrying amount of assets held under finance leases is analysed as follows
 
 the group the company
 ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– –––––––––––––––––––
  long short plant    
  leases leases equipment total total
  £m £m £m £m £m
2010  08 119 13 140 
2009  08 131 19 158 
comparable amounts determined according to the historical cost convention
 the group the company
 ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– –––––––––––––––––––
  long short plant    
 freehold leases leases equipment total total
 £m £m £m £m £m £m
cost 2695 264 1296 4562 8817 
accumulated depreciation 518 58 474 2720 3770 
net book value
at 31 december 2010 2177 206 822 1842 5047 
at 31 december 2009 2042 181 817 1731 4771 
17 investment property
 
  the group
  –––––––––––––––––––
    £m
cost 
at 1 january 2009 and 1 january 2010    39
disposals    34
at 31 december 2010    05
accumulated depreciation 
at 1 january 2009    05
provided in the year    01
at 1 january 2010    06
disposals    05
at 31 december 2010    01
net book value 
at 31 december 2010    04
at 31 december 2009    33
investment property rental income totalled £nil 2009 £02m in addition the group also receives income from subletting all or part of 100 extrading and trading 
properties the amount of which is not material
as no external valuation has been performed the directors have estimated that the fair value of investment property equates to its carrying value as such it 
is not material to the group’s balance sheet
the company has no investment property 108
no tes t o the financial s tatement s
 
2038604 proof 2 310311
108
18 investments
a interest in associates and joint ventures
 the group the company
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 2010 2009 2010 2009 
 £m £m £m £m
equity investment 174 54 174 54
loan facility 285 280 285 280
interest on loan facility 64 29 64 29
arising on acquisition of the bss group plc 01   
share of losses 67 46  
 457 317 523 363
on 4 april 2008 travis perkins plc acquired a 30 investment in toolstation limited for a total consideration of £52m in addition travis perkins plc has provided 
a nonrevolving loan facility totalling £280m in the year to 31 december 2010 toolstation recognised total revenues of £698m and a loss before tax of £69m 
at 31 december 2010 total aggregate assets were £264m and total aggregate liabilities including the loan facility provided by travis perkins plc were £532m
on 1 december 2009 travis perkins plc acquired a 49 investment in the mosaic tile company limited for a total consideration of £02m in the twelve month 
period to 31 december 2010 the mosaic tile company limited recognised total revenues of £74m and a loss before tax of £01m at 31 december 2010 total 
aggregate assets were £28m and total aggregate liabilities were £25m
in april 2009 construction site solutions llp ‘css’ a consortium consisting of hewden stuart plc speedy hire plc lavendon group plc and the bss group 
plc were granted a licence from oda to supply plant and builders merchant products to primary on site contractors each consortium member has a 25 holding 
in css in the twelve month period to 31 december 2010 css recognised total revenues of £04m and a profit before tax of £nil at 31 december 2010 total 
aggregate assets were £07m and total aggregate liabilities were £02m
b shares in group undertakings
  the company
  –––––––––––––––––––––––––
   2010 2009 
cost   £m £m
at 1 january   19121 18143
additions   8027 978
at 31 december   27148 19121
provision for impairment    170 170
net book value at 31 december   26978 18951
the principal operating subsidiaries of the group and company at 31 december 2010 are as follows
subsidiary  registered office
travis perkins trading company limited builders merchants lodge way house harlestone road northampton nn5 7ug
keyline builders merchants limited builders merchants suite s3 8 strathkelvin place kirkintilloch glasgow g66 1xt
wickes building supplies limited diy retailers lodge way house harlestone road northampton nn5 7ug
city plumbing supplies holdings limited plumbers merchants lodge way house harlestone road northampton nn5 7ug
ccf limited ceiling  dry lining distribution lodge way house harlestone road northampton nn5 7ug
travis perkins properties limited property management company lodge way house harlestone road northampton nn5 7ug
benchmarx kitchens and joinery limited specialist distribution lodge way house harlestone road northampton nn5 7ug
tile giant limited ceramic tile merchants lodge way house harlestone road northampton nn5 7ug
the bss group limited plumbing and heating merchants fleet house lee circle leicester leicestershire le1 3qq
pts group limited plumbing and heating merchants fleet house lee circle leicester leicestershire le1 3qq
held directly by travis perkins plc
the directors have applied s409 to s410 of the companies act 2006 and therefore list only significant subsidiary companies
all subsidiaries are 100 owned all companies are registered and incorporated in england and wales other than keyline builders merchants limited and 8 
dormant companies which are registered and incorporated in scotland city investments limited which is registered and incorporated in jersey and 2 dormant 
companies registered and incorporated in northern ireland  
2038604 proof 2 310311
109
no tes t o the financial s tatement s
18 investments continued
c availableforsale investments
 the group the company
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 2010 2009 2010 2009 
 £m £m £m £m
fair value investment 15 15  
the investment represents a minority holding in a unit trust that acquired properties from the group in 2006 the investment presents the group with an opportunity 
to generate returns through both income and capital gains the directors consider that the carrying amount of this investment approximates its fair value
19 trade and other receivables
 the group the company
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 2010 2009 2010 2009 
 £m £m £m £m
trade receivables 5754 2795  
allowance for doubtful debts 444 345  
 5310 2450  
amounts owed by subsidiaries   2055 490
other receivables prepayments and accrued income 1615 1304 29 18
trade and other receivables 6925 3754 2084 508
the group’s trade and other receivables at the balance sheet date comprise principally of amounts receivable from the sale of goods together with amounts due 
in respect of rebates and sundry prepayments the directors consider the only class of asset containing significant credit risk is trade receivables the average 
credit term taken for sales of goods is 55 days 2009 54 days 
the amounts presented in the balance sheet are net of allowances for doubtful debts of £444m 2009 £345m estimated by the group’s management 
based on prior experience and their assessment of the current economic environment the directors consider the carrying amount of trade and other receivables 
approximates their fair values
no interest is charged on the trade receivable from the date of the invoice until the date the invoice is classified as overdue according to the trading terms agreed 
between the group and the customer thereafter the group retains the right to charge interest between 2 to 4 above the clearing bank base rate per annum 
on the outstanding balance the merchanting division has provided fully for all receivables outstanding over 90 days beyond agreed terms trade receivables not 
receivable for up to 90 days are specifically provided for based on estimated irrecoverable amounts trade receivables within the bss division are provided for 
based on prior experience and assessment of the current economic environment 
movement in the allowance for doubtful debts
  the group
  –––––––––––––––––––––––––
   2010 2009
   £m £m
at 1 january   345 323
arising on acquisition   52 
amounts written off during the year   53 102
increase in allowance recognised in the income statement   100 124
at 31 december   444 345
in determining the recoverability of the trade receivables the group considers any change in the credit quality of the trade receivable from the date credit was initially 
granted up to the reporting date the concentration of credit risk is limited due to the customer base being large accordingly the directors believe that no further 
credit provision is required in excess of the allowance for doubtful debts
included in the group’s trade receivable balance are unprovided against debtors with a carrying amount of £704m 2009 £209m which are past due at the 
reporting date for which the group has not identified a significant change in credit quality and as such the group considers that the amounts are still recoverable 
except for some instances of personal guarantees the group does not hold any collateral over these balances  110
no tes t o the financial s tatement s
 
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110
19 trade and other receivables continued 
ageing of past due but not impaired receivables
 
days overdue
  the group
  –––––––––––––––––––––––––
   2010 2009
   £m £m
0 – 30 days   547 160
31 – 60 days   94 33
61 – 90 days   63 16
   704 209
included in the allowance for doubtful debts are specific trade receivables with a balance of £240m 2009 £204m which have been placed into liquidation the 
impairment represents the difference between the carrying amount of the specific trade receivable and the amount it is anticipated will be recovered
none of the company’s debts are overdue the directors do not consider there to be any significant credit risk as the majority of the debt is due from subsidiaries
20 assets held for resale
to address competition concerns raised by the oft arising on the acquisition of the bss group plc travis perkins plc has given undertakings to dispose of 15 pts 
and 4 cps branches the net book value of these assets has been transferred from fixed assets and held in current assets at net realisable value 
the group
    2010
    £m
property plant and equipment    10
inventories    31
impairment of assets    06
costs of disposal    12
    23
21 cash and cash e quivalents
cash and cash equivalents comprise cash held by the group and company the carrying amount of these assets approximates their fair value no tes t o the financial s tatement s
 
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22 share capital
 the group and the company
 –––––––––––––––––––––––––––––––––––––––––––
 issued and fully paid
 –––––––––––––––––––––––––––––––––––––––––––
ordinary shares of 10p no £m
at 1 january 2009  122719114  123
allotted on rights issue  85903379  86
allotted under share option schemes  8973  
at 1 january 2010  208631466  209
allotted on acquisition of bss  33000681  33
allotted under share option schemes  69770  
at 31 december 2010  241701917  242
on 14 december 2010 travis perkins plc issued 33000681 ordinary shares at an issue price of £9975 pursuant to the acquisition of the entire share capital 
of the bss group plc 
the company has one class of ordinary share that carries no right to fixed income the holders of ordinary shares are entitled to receive dividends as declared 
from time to time and are entitled to one vote per share at meetings of the company all shares rank equally with regard to the company’s residual assets
23 own shares
the group and the company
   2010 2009
   no no
at 1 january    7000690 5684680
acquired during the year    1316010
reissued during the year   38760 
at 31 december    6961930 7000690
allocated to grants of executive options   289142 289142
not allocated to grants of executive options   6672788 6711548
   6961930 7000690
the own shares are stated at cost and held by the employee share ownership trust to satisfy options under the group’s share option schemes all rights attaching 
to own shares are suspended until the shares are reissued 
24 reserves
details of all movements in reserves for both the group and company are shown in the statement of changes in equity a description of the nature and purpose 
of each reserve is given below
the revaluation reserve represents the revaluation surplus that has arisen from property revaluations in 1999 and prior years
the hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to hedged transactions 
that have yet to occur 
the own shares reserve represents the cost of shares purchased in the market and held by the employee share ownership trust to satisfy options under the 
group’s share option schemes
the merger reserve represents the premium on equity instruments issued as consideration for the acquisition of bss
the cumulative total of goodwill written off directly to reserves for acquisitions from december 1989 to december 1998 is £401m the aggregate information 
for the accounting periods prior to this period is not available 112
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25 borrowings
a summary of the group policies and strategies with regard to financial instruments can be found in the statement of principal risks and uncertanties on pages 49 
to 51 at 31 december 2010 all borrowings were made in sterling except for the unsecured senior notes note 25 i
a summary
 the group the company
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 2010 2009 2010 2009 
 £m £m £m £m
unsecured senior notes 3660 2717 2864 2717
liability to pension spv note 8 361   
bank loans note 25c  4019 5250 4750 5250
bank overdraft 120  19 40
finance leases note 25d 218 235  
loan notes note 25e 33 38 33 38
finance charges netted off bank debt  46 96 46 96
 8365 8144 7620 7949
current liabilities 756 753 752 778
noncurrent liabilities 7609 7391 6868 7171
 8365 8144 7620 7949
these balances together total the amounts shown as bank loans in note 25b 
b analysis of borrowings
the group
 bank loans  
  and overdrafts other borrowings
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 2010 2009 2010 2009
 £m £m £m £m
borrowings repayable 
on demand or within one year 708 700 48 53
more than one year but not more than two years 588 700 15 15
more than two years but not more than five years 2797 3754 1878 1406
more than five years   2331 1516
 4093 5154 4272 2990
the company
 bank loans  
  and overdrafts other borrowings
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 2010 2009 2010 2009
 £m £m £m £m
borrowings repayable     
on demand or within one year 719 740 33 38
more than one year but not more than two years 700 700 1422 
more than two years but not more than five years 3304 3754  1359
more than five years   1442 1358
 4723 5194 2897 2755 no tes t o the financial s tatement s
 
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25 borrowings continued
c facilities
at 31 december 2010 the group had the following bank facilities available
 the group the company
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 2010 2009 2010 2009 
 £m £m £m £m
drawn facilities     
5 year term loan 3820 5250 4550 5250
5 year revolving credit facility 200  200 
unsecured senior notes 3660 2717 2864 2717
bank overdrafts 120  19 40
 7800 7967 7633 8007
undrawn facilities    
5 year revolving credit facility 4550 4750 4550 4750
bank overdrafts 384 400 381 
 4934 5150 4931 4750
the disclosures in note 25c do not include finance leases loan notes or the effect of finance charges netted off bank debt
d obligations under finance leases
the group
  present value 
 minimum of minimum 
 lease payments lease payments
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 2010 2009 2010 2009 
 £m £m £m £m
amounts payable under finance leases     
  
within one year 27 28 15 15
in the second to fifth years inclusive 103 107 63 63
after five years 236 262 140 157
 366 397 218 235
less future finance charges 148 162  
present value of lease obligations 218 235 218 235
less amount due for settlement within 1 year shown under current liabilities   15 15
amount due for settlement after 1 year   203 220
as a result of the introduction of ias 17 – ‘leases’ the group considers certain properties to be subject to finance leases excluding 999 year leases the average 
loan term for these properties is 49 years and the average borrowing rate has been determined at the inception of the lease to be 89 in addition the group leases 
certain fixtures and equipment under finance leases the obligations for which are secured by the lessors’ charges over the leased assets the average lease term 
is 34 years for the year ended 31 december 2010 the average implicit borrowing rate was 129 2009 134 interest rates are fixed at the contract date all 
lease obligations which are denominated in sterling are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments
e loan notes 
included in borrowings due within one year are £33m 2009 £38m in respect of loan notes issued as consideration for the acquisition of broombys limited in 
1999 they are redeemable on 30 june and 31 december each year until the final redemption date of 30 june 2015 
  114
no tes t o the financial s tatement s
 
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114
25 borrowings continued
f interest
the weighted average interest rates paid were as follows   2010 2009
    
unsecured senior notes   58 58
bank loans and overdraft   18 22
other borrowings   60 54
bank term loans and revolving credit facilities of £857m 2009 £1000m were arranged at variable interest rates the 400m unsecured travis perkins senior 
notes and the 125m unsecured bss group senior notes were issued at fixed rates of interest and swapped into variable rates this exposes the group to fair 
value interest rate risk as detailed in note 26 to manage the risk the group enters into interest rate derivatives arrangements which for 2010 fixed interest rates 
on an average of £523m of borrowing for the year to 31 december 2010 this had the effect of increasing the weighted average interest rates paid by 125
in respect of income earning financial assets and interest bearing financial liabilities the following table indicates their effective interest rates at the balance 
sheet date and the periods in which they reprice
the group
 2010 2009
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
  6 months or less   6 months or less
 effective total effective total
 interest rate £m  interest rate  £m
unsecured senior notes 58 3660 58 2717
unsecured variable rate bank facilities 18 4019 18 5250
loan notes 60 33 56 38
bank overdraft 23 120 23 
  7832  8005
the company
 2010 2009
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
  6 months or less   6 months or less
 effective total effective total
 interest rate £m  interest rate  £m
unsecured senior notes 58 2864 58 2717
unsecured variable rate bank facilities 18 4750 18 5250
loan notes 60 33 56 38
bank overdraft 23 19 23 40
  7666  8045
g fair values
for both the group and the company the fair values of financial assets and liabilities have been calculated by discounting expected cash flows at prevailing rates at 
31 december there were no significant differences between book and fair values on this basis and therefore no further information is disclosed details about the 
fair values of derivatives are given in note 26
h guarantees and security
there are cross guarantees on the overdrafts between group companies
the companies listed in note 18 with the exception of benchmarx kitchens and joinery limited tile giant limited pts group limited and the bss group 
limited together with wickes limited are guarantors of the following facilities advanced to travis perkins plc
●
  £382m term loan
●
  £475m revolving credit facility
●
  400m unsecured senior notes note 25i
●
  interest rate and currency derivatives note 26
the bss group limited and pts group limited along with 10 dormant subsidiaries are guarantors of 125m of the unsecured senior notes
the group companies have entered into other guarantee and counterindemnity arrangements in respect of guarantees issued in favour of group companies by 
the clearing banks amounting to approximately £211m 2009 £137m no tes t o the financial s tatement s
 
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25 borrowings continued
i unsecured senior notes
on 26 january 2006 the group finalised a us private placement that resulted in it receiving 400m 200m of the unsecured senior notes is repayable in january 
2013 and 200m in january 2016 the us borrowings carry fixed rate coupons of between 130 bps and 140 bps over us treasuries as described in note 26 to 
protect itself from currency movements and bring interest rate exposures back into line with the group’s desired risk profile the group entered into five cross currency 
swaps on 11 may 2006 the bss group plc finalised a us private placement that resulted in it receiving 125m and repaying the sterling equivalent outstanding 
on the revolving credit facility of this borrowing 75m is repayable in may 2013 with the remaining 50m repayable in may 2016 in order to protect itself against 
currency movements and interest rate exposures the bss group entered into three cross currency interest rate swaps
26 financial instruments
significant accounting policies
details of the significant accounting policies and methods adopted including the criteria for recognition the basis of measurement and the basis on which income 
and expenses are recognised in respect of each class of financial asset financial liability and equity instrument are disclosed in note 2 to the financial statements
the carrying value of categories of financial instruments
 the group the company
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 2010 2009 2010 2009 
 £m £m £m £m
financial assets     
designated as fair value through profit and loss fvtpl 01  01 
derivative instruments in designated hedge accounting relationships 569 447 03 447
loans and receivables including cash and cash equivalents 6852 6718 3952 3678
availableforsale 15 15  
 7437 7180 3956 4125
    
financial liabilities     
designated as fair value through profit and loss fvtpl 41 35 1247 35
derivative instruments in designated hedge accounting relationships  26 26 26 26
borrowings note 25a 8365 8144 7620 7949
trade and other payables at amortised cost note 29  8310 6387 267 196
 16742 14592 9160 8206
loans and receivables exclude prepayments of £702m 2009 £508m trade and other payables exclude taxation and social security and accruals and deferred 
income totalling £1689m
the carrying amount of financial assets recorded in the financial statements which is net of impairment losses represents the group’s maximum exposure to 
credit risk
fair value of financial instruments
the fair values of financial assets and financial liabilities are determined as follows
●
   foreign currency forward contracts are measured using quoted forward exchange rates 
●
   interest rate swaps are measured at the present value of future cash flows estimated and discounted based on the applicable yield curves derived from quoted 
interest rates
the following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value grouped into levels 1 to 3 based 
on the degree to which the fair value is observable
●
   level 1 fair value measurements are those derived from quoted prices unadjusted in active markets for identical assets or liabilities
●
   level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for the asset or liability 
either directly ie as prices  or indirectly ie derived from prices and
●
   level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market 
data unobservable inputs
there were no transfers between levels during the year 116
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116
26 financial instruments continued
included in assets
 the group the company
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 2010 2009 2010 2009 
 £m £m £m £m
level 2   
foreign currency forward contracts at fair value through profit and loss 01  01 
foreign currency forward contracts designated and effective as 
hedging instruments carried at fair value 03  03 
cross currency interest rate swaps designated and effective as 
hedging instruments carried at fair value 541 447  447
cross currency interest rate swaps designated and effective as 
cash hedging instruments 25   
 570 447 04 447
    
current assets 01  01 
noncurrent assets 569 447 03 61
 570 447 04 61
included in liabilities     
level 2    
foreign currency forward contracts at fair value through profit and loss 10  10 
interest rate swaps at fair value through profit and loss  41 35 41 35
interest rate swaps designated and effective as cash hedging instruments 16 26 16 26
cross currency interest rate swaps designated and effective 
as hedging instruments carried at fair value    1205 
 67 61 1272 61
   
current liabilities 25  25 
noncurrent liabilities 42 61 1247 61
 67 61 1272 61
interest risk management
the group is exposed to interest rate risk as entities in the group borrow funds at both fixed and floating interest rates the risk is managed by the group by 
maintaining an appropriate mix between fixed and floating rate borrowings by the use of interest rate swap contracts and forward interest rate contracts hedging 
activities are evaluated regularly to align with interest rate views and defined risk appetite ensuring optimal hedging strategies are applied by either positioning 
the balance sheet or protecting interest expense through different interest rate cycles
interest rate swaps
the group adopts a policy of ensuring that its exposure to changes in interest rates on borrowings is either on a fixed rate basis or is subject to movements within 
predefined limits to achieve its desired interest rate profile the group uses interest rate swaps 
as part of their interest rate management processes in respect of the facilities described in note 25 the group and the company at the commencement of the 
year were parties to four amortising swaps each with an initial notional value of £100m two amortising swaps with an initial notional value of £50m and two non 
amortising swaps each with a notional value of £50m contracts with notional values of £400m are designated as cash flow hedges with fixed interest payments 
at an average rate of 151 for periods up until may 2011 and have floating interest receipts equal to 1 month libor the nonamortising interest rate swap with 
a call option has a notional value of £50m with fixed interest payments at a rate of 4595 for periods up until october 2013 and has floating interest payments 
equal to 6 month libor
at 31 december 2010 the fair value of interest rate derivatives all of which terminate before three years from the balance sheet date to which the group and 
the company were parties was estimated at £57m 2009 £61m this amount is based on market values of equivalent instruments at the balance sheet date 
interest rate swaps excluding those with a call option are designated and effective as cash flow hedges and the fair value thereof has been deferred in equity a 
credit of £07m 2009 £47m in respect of the fair value movement on interest rate swaps with a call option has been taken to the income statement through 
net finance charges as the company has not applied hedge accounting
interest rate swap contracts
under interest rate swap contracts the group agrees to exchange the difference between fixed and floating interest rate amounts calculated on agreed notional 
principal amounts such contracts enable the group to mitigate the risk of changing interest rates on the fair value of issued fixed rate debt held and the cash  no tes t o the financial s tatement s
 
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26 financial instruments continued
flow exposures on the issued variable rate debt held the fair value of interest rate swaps at the reporting date is determined by discounting the future cash flows 
using the curves at the reporting date and the credit risk inherent in the contract and is disclosed below the average interest rate is based on the outstanding 
balances at the end of the financial year
the following tables detail the notional principal amounts and remaining terms of interest rate swap contracts as at the reporting date
cash flow hedges – outstanding receive floating pay fixed contracts
   
  average contract fixed interest rate  notional principle amount fair value
 –––––––––––––––––––––––––––––––––––– –––––––––––––––––––––––––––––– ––––––––––––––––––––––––––––––
 2010 2009 2010 2009 2010 2009 
   £m £m £m £m
less than 1 year 152  4000  16 
1 to 2 years  151  5300  26
greater than 5 years 540  290  25 
   4290 5300 09 26
the interest rate swaps settle on a monthly basis the floating rate on the interest rate swaps is 1 month libor the group will settle the difference between 
the fixed and floating interest rate on a net basis all interest rate swap contracts exchanging floating rate interest amounts for fixed rate interest amounts are 
designated as cash flow hedges in order to reduce the group’s cash flow exposure resulting from variable interest rates on borrowings the interest rate swaps 
and the interest rate payments on the loan occur simultaneously and the amount deferred in equity is recognised in the income statement over the period that the 
floating rate interest payments on debt impact profit or loss
currency swaps
in order to eliminate the currency risk associated with the 400m unsecured senior notes described in note 25i the group and the company entered into five 
cross currency swaps in varying amounts between £23m and £63m to fix the exchange rate at £1 equal to 173 for the entire lives of the unsecured loan notes 
the forward options fixed the notional amount receivable and payable in respect of the unsecured senior notes to £231m as well as fixing the exchange rate 
applicable to future coupon payments
during the year the group and company novated one cross currency interest rate swap with a notional value of 110m and a sterling equivalent of £63m 
for total proceeds of £137m in the group and £163m in the company the proceeds are being amortised to the income statement over the remain life of the 
unsecured senior notes
the remaining currency swaps manage the group’s and the company’s exposure to the fixed interest rate on the us dollar denominated borrowing arising out of 
a private placement on 26 january 2006 there are two interest rate swaps of £58m that convert the borrowing rate on 200m of debt from 577 to a variable 
rate on 6 month libor plus a weighted average basis point increment of 819 at 26 january 2006 the variable rates were both at 543 a further two interest 
rate swaps of £29m and £23m convert the borrowing rates on us50m us40m of debt from 589 to a variable rate based on six month libor plus basis point 
increment of 865 and 867 respectively at 26 january 2006 the variable rates were at weighted average 547
in order to eliminate the currency risk associated with the bss private placement of 125m the bss group plc entered into three cross currency interest rate 
swaps to fix the exchange rate at £1 equal to 173 for the entire duration of the private placement the interest rate swaps settle on a half yearly basis the floating 
rate on the interest rate swaps is six month libor there are two interest rate swaps on the seven year borrowing of £29m and £14m that convert the borrowings 
on 50m and 25m respectively from 58 to a variable rate on six month libor plus a basis point increment of 6475 and 6679 at 31 december 2010 the 
fair value of cross currency derivatives was estimated at £541m 2009 £447m all of these currency swaps are designated and effective as fair value hedges
 a further interest rate swap on the ten year borrowing of £29m converts the borrowing on the 50m debt from 591 to a fixed rate of 47 plus a basis point 
increment of 7075 this is accounted for as a cash flow hedge at 31 december 2010 this cash flow hedge had an estimated fair value of £25m
in april 2010 the group and the company entered into three forward contracts to purchase us with a notional value of 30m each and one with a notional 
value of £20m these contracts have a maturity date of january 2016 at 31 december 2010 the fair value of these forward contracts was estimated at £03m
the interest rate swaps settle on a half yearly basis the floating rate on the interest rate swaps is 6 months libor the group will settle the difference between 
the fixed and floating interest on a net basis
fair value hedges – outstanding receive fixed pay floating contracts
  average contract floating interest rate  notional principle amount fair value
 –––––––––––––––––––––––––––––––––––– –––––––––––––––––––––––––––––– ––––––––––––––––––––––––––––––
 2010 2009 2010 2009 2010 2009 
   £m £m £m £m
2 to 5 years 18 29 1586 1156 387 216
greater than 5 years 18 29 520 1156 154 231
   2106 2312 541 447 118
no tes t o the financial s tatement s
 
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26 financial instruments continued
interest rate swap contracts exchanging fixed rate interest for floating rate interest are designated and effective as fair value hedges in respect of interest rates 
during the period the hedge was 100 effective in hedging the fair value exposure to interest movements and as a result the carrying amount of the loan was 
adjusted by £384m 2009 £397m which was included in the income statement at the same time that the fair value of the interest rate swap was included in 
the income statement
the group acquires goods for sale from overseas which when not denominated in sterling are paid for principally in us dollars the group has entered into 
forward foreign exchange contracts all of which are less than one year in duration to buy us dollars to hedge the exchange risk arising from these anticipated 
future purchases at the balance sheet date the total notional value of contracts to which the group was committed was us936m 2009 us40m the fair value 
of these derivatives is £10m 2009 £0m these contracts have not been designated as hedges and accordingly the fair value movement has been reflected in 
the income statement
on 15 october 2010 the company derecognised the dollar receivable on 273m of cross currency interest rate swaps and transferred the rights to that 
receivable to a subsidiary the dollar legs had maturity dates and amounts of 188m in january 2013 and 85m in january 2016 the total fair value of the 
dollar cross currency interest rate swaps in the company is £1205m on the 15 october the company subscribed to 273m of dollar preference shares issued 
by a subsidiary company these preference shares carry a right to receive interest and a total credit of £21m has been recognised in the income statement the 
investment in the preference shares has been retranslated at year end rates with a gain of £43m being recognised in the income statement
the following table details the group’s liquidity analysis for its derivative financial instruments and other financial liabilities the table has been drawn up based 
on the undiscounted net cash inflows  outflows on the derivative instrument that settle on a net basis and the undiscounted gross inflows and outflows on 
those derivatives that require gross settlement when the amount payable or receivable is not fixed the amount disclosed has been determined by reference to 
the projected interest and foreign currency rates as illustrated by the yield curves existing at the reporting date
  2010
  ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
  01 year 12 years 25 years 5 years total 
  £m £m £m £m £m
gross settled      
interest rate swaps – receipts  108 108 1417 592 2225
interest rate swaps – payments  29 36 1220 526 1811
  79 72 197 66 414
foreign exchange forward contracts  574   04 578
total gross settled  495 72 197 62 164
net settled     
interest rate swaps  08 09 11 01 05
total derivative financial instruments  503 63 208 63 169
borrowings  937 785 5082 2113 8917
other financial liabilities note 29  8310    8310
finance leases note 25d  27 27 76 236 366
total financial instruments  9777 749 4950 2286 17762
  2009
  ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
  01 year 12 years 25 years 5 years total 
  £m £m £m £m £m
gross settled     
interest rate swaps – receipts  145 145 1574 1354 3218
interest rate swaps – payments  37 45 1324 1229 2635
  108 100 250 125 583
foreign exchange forward contracts  268    268
total gross settled  160 100 250 125 315
net settled     
interest rate swaps  19 60 22  101
total derivative financial instruments  179 40 228 125 214
borrowings  738 700 5209 1358 8005
other financial liabilities note 29  6387    6387
finance leases note 25d  28 28 79 262 397
total financial instruments  7332 688 5060 1495 14575 no tes t o the financial s tatement s
 
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26 financial instruments continued
interest rate sensitivity analysis
the sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives and nonderivative financial instruments at the 
balance sheet date for floating rate liabilities the analysis is prepared assuming that the amount of liability outstanding at the balance sheet date was outstanding 
for the whole year a 10 increase or decrease is used when reporting interest rate risk internally to key management personnel if interest rates had been 10 
higher  lower and all other variables were held constant the group’s
●
   profit before taxation for the year ended 31 december 2010 would have decreased  increased by £02m 2009 increased  decreased by £3m including £1m 
2009 £2m of movement on interest rate swaps with options
●
   net equity would have increased  decreased by £02m 2009 increased  decreased by £6m mainly as a result of the changes in the fair value of interest rate 
derivatives
the group’s sensitivity to interest rates has decreased during the current period mainly due to the increase in the nominal value of interest rate derivatives
 27 pr ovis i ons
  
 the group 
 –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
 property insurance  other total 
 £m £m £m £m
at 1 january 2010  583 288 22 893
arising on acquisition 34 20  54
additional provision in the year 02 26 08 36
exceptional provision release 21   21
utilisation of provision 80 19  99
unwinding of discount 28   28
at 31 december 2010 546 315 30 891
included in current liabilities 186 315 30 531
included in noncurrent liabilities 360   360
 546 315 30 891
the group has a number of vacant and partly sublet leasehold properties where necessary provision has been made for the residual lease commitments after 
taking into account existing and anticipated subtenant arrangements 
it is group policy to substantially self insure itself against claims arising in respect of damage to assets or due to employers or public liability claims the nature 
of insurance claims means they may take some time to be settled the insurance claims provision represents management’s best estimate based upon external 
advice of the value of outstanding insurance claims where the final settlement date is uncertain
the following table details the group’s liquidity analysis of its provisions the table has been drawn up based on the undiscounted net cash outflows
  01 year 12 years 25 years 5 years total 
2010  £m £m £m £m £m
property  170 87 181 285 723
insurance  315    315
other  30    30
  515 87 181 285 1068
     
2009     
property  137 93 232 318 780
insurance  288    288
other  22    22
  447 93 232 318 1090
the company has no provisions 120
no tes t o the financial s tatement s
 
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 28 deferred tax
the following are the major deferred tax liabilities and assets recognised by the group and movements thereon during the current and prior reporting periods
the group         
      recognised in    
 at 1 jan recognised recognised at 31 dec acquired  noncurrent recognised recognised at 31 dec  
 2009 in income in equity 2009  in year  assets in income in equity 2010 
 £m £m £m £m £m £m £m £m £m
capital allowances 139 23  116 03  47  66
revaluation 121   121 03   04 120
share based payments  30 08 38 01  18 59 116
provisions 104 03  107 01  11  119
derivatives   46 46 06   21 19
business combinations 136 09  127  54 14  167
brand 455   455 39 606 16  1084
pension scheme surplus       39 47 86
deferred tax liability 747 65 54 628 43 660 67 05 1269
deferred tax asset 195 154 79 120 164  120  164
net deferred tax 552 89 133 508 121 660 53 05 1105
at the balance sheet date the group had unused capital losses of £593m 2009 £593m available for offset against future capital profits no deferred tax asset 
has been recognised because it is not probable that future taxable profits will be available against which the group can utilise the losses
other than disclosed above no deferred tax assets and liabilities have been offset 
the group has recognised a deferred tax asset of £164m 2009 £120m in respect of the deficit on the bss group pension schemes the directors believe 
that the deferred tax asset will be realised as the deficit is reduced over the coming years 
the company    
 at 1 jan recognised recognised  at 31 dec recognised recognised at 31 dec
  2009 in equity in income 2009 in income in equity 2010 
provided £m £m £m £m £m £m £m
share based payments  30 08 38 18 59 115
derivatives   46 46  21 25
provisions 07 01  06 01  07
 07 29 54 90 19 38 147
29 other financial liabilities
 
 the group the company
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 2010 2009 2010 2009 
 £m £m £m £m
trade payables 6847 4089  
other taxation and social security 501 337  
other payables 1463 986 267 196
accruals and deferred income 1188 975  
trade and other payables 9999 6387 267 196
the group 
trade and other payables principally comprise amounts outstanding for trade purchases and ongoing costs the average credit period taken for trade purchases 
is 55 days 2009 52 days the directors consider that the carrying amount of trade payables approximates to their fair value the group has financial risk 
management policies in place to ensure that all payables are paid within the credit timeframe no tes t o the financial s tatement s
 
2038604 proof 2 310311
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29 other financial liabilities continued
the company
trade and other payables principally comprise amounts outstanding for trade purchases and ongoing costs the average credit period taken for trade purchases 
is 30 days 2009 30 days the directors consider that the carrying amount of trade payables approximates to their fair value
30 acquisition of businesses
a the bss group plc 2009 other
on the 14 december 2010 the group acquired the entire issued share capital of the bss group plc the acquisition was accounted for using the purchase method 
of accounting the acquisition has created the leading plumbing and heating distribution business in the uk
  2010 2009 
  provisional fair value acquired fair value acquired 
  £m £m
net assets acquired  
property plant and equipment  365 
identifiable intangible assets  2573 
derivative financial instruments  149 
investments  01 
inventories  1997  
trade and other receivables  3168 01
retirement benefit obligations  596 
trade and other payables  2420 04
provisions  54 
deferred tax liabilities  539 
current tax liabilities  35 
bank overdrafts and loans  1746 18
  2863 13
goodwill  3376 14
deferred consideration   09
amount payable  6239 10
satisfied by  
cash  2947 10
equity instruments closing price on 14 december 2010  3292 
  6239 10
due to the close proximity of the date of acquisition of the bss group plc to the group’s yearend it has not been possible to undertake all of the reviews that the 
directors of travis perkins believe are necessary to finalise the fair value adjustments relating to the bss balance sheet on the acquisition date accordingly the fair 
values ascribed to assets and liabilities in the table above are provisional and will be subject to change in the 2011 statutory accounts
expenses incurred on the acquisition of the bss group plc are discussed in note 5 the total amount of goodwill expected to be deductible for tax purposes 
is nil the fair value of the financial assets include trade and other receivables with a fair value of £3116m and a gross contractual value of £3168m the best 
estimate at the acquisition date of the contractual cash flows not to be collected are £52m
the identifiable intangible assets comprise customer relationships of £1348m brands acquired of £1129m and computer software of £96m
if the acquisition of the bss group plc had been completed on the first day of the financial year group revenues for the period would have been £4599m and 
group operating profit would have been £300m
goodwill arising on acquisitions
the goodwill arising on the acquisition made during the year is attributable to the anticipated profitability of this acquisition and the future operating synergies 
arising in the enlarged group  122
no tes t o the financial s tatement s
 
2038604 proof 2 310311
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30 acquisition of businesses continued
b other acquisitions
the group paid £02m for other immaterial acquisitions during 2010 
31 operating lease arrangements
the group leases a number of trading properties under operating leases the leases are typically 25 years in duration although some have lessee only break 
clauses of between 10 and 15 years lease payments are reviewed every five years and increases applied in line with market rates the group also leases certain 
items of plant and equipment the company has no operating lease arrangements
the group as lessee   2010 2009
   £m £m
minimum lease payments under operating leases recognised in income for the year   1434 1354
at the balance sheet date the group had outstanding commitments for future minimum lease payments under noncancellable operating leases which fall due 
as follows
   2010 2009
   £m £m
within one year   1674 1362
in the second to fifth years inclusive   5767 4899
after five years   11539 10868
   18980 17129
the group as lessor
the group sublets a number of extrading properties to third parties property rental income earned during the year in respect of these properties was £40m 
2009 £47m
at the balance sheet date the group had contracts with tenants for the following future minimum lease payments
   2010 2009
   £m £m
within one year   36 36
in the second to fifth years inclusive   111 126
after five years   141 158
   288 320
32 related party transactions
the group has a related party relationship with its subsidiaries and with its directors transactions between group companies which are related parties have 
been eliminated on consolidation and are not disclosed in this note transactions between the company and its subsidiaries are disclosed below in addition the 
remuneration and the details of interests in the share capital of the company of the directors are provided in the audited part of the remuneration report on 
pages 66 to 71
the remuneration of the key management personnel of the group is set out below in aggregate for each of the categories specified in ias 24 related party 
disclosures
   2010 2009
   £m £m
short term employee benefits   80 66
share based payments   30 23
   110 89 no tes t o the financial s tatement s
 
2038604 proof 2 310311
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32 related party transactions continued
the company undertakes the following transactions with its active subsidiaries
●
  providing daytoday funding from its uk banking facilities
●
   levying an annual management charge to cover services provided to members of the group of £69m 2009 £69m
●
  receiving annual dividends totalling £403m 2009 £1224m
details of balances outstanding with subsidiary companies are shown in note 19 and on the balance sheet on page 82
there have been no material related party transactions with directors
details of transactions with the group’s associate companies toolstation and the mosaic tile company limited are shown in note 18 operating transactions with 
both associates during the year were not significant 
33 capital commitments
 the group the company
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 2010 2009 2010 2009 
 £m £m £m £m
contracted for but not provided in the accounts 161 42  
34 net debt reconciliation
 the group the company
 ––––––––––––––––––––––––– –––––––––––––––––––––––––
 2010 2009 2010 2009 
 £m £m £m £m
net debt at 1 january 4672 10174 4779 10916
decrease  increase in cash and cash equivalents 2963 3518 3025 4168
net debt arising on acquisition 1746   
cash flows from debt 1676 1616 343 1601
decrease  increase in fair value of debt 31 397 21 397
finance charges netted off bank debt 57 29 50 29
amortisation of swap cancellation receipt 10  36 
discount unwind on pension spv 15   
net debt at 31 december 7736 4672 7496 4779
35 gearing 
  the group
  –––––––––––––––––––––––––
   2010 2009 
   £m £m
net debt under ifrs   7736 4672
ias 17 finance leases   219 232
swap cancellation receipt   51 
fair value on debt acquired   124 
fair value adjustment to debt   374 405
finance charges netted off bank debt   46 96
net debt under covenant calculations   7014 4131
total equity   19518 14604
gearing   360 283 124
no tes t o the financial s tatement s
 
2038604 proof 2 310311
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36 free cash flow
  the group
  –––––––––––––––––––––––––
   2010 2009 
   £m £m
net debt at 1 january   4672 10174
net debt at 31 december   7736 4672
decrease  increase in net debt   3064 5502
dividends paid   101 
net cash outflow for expansion capital expenditure   290 111
net cash outflow for acquisitions   2949 
net cash outflow for acquisition of investments    10
swap cancellation fee    287
amortisation of swap cancellation receipt   09 
discount unwind on spv   15 
cash impact of exceptional items   76 25
interest in associate   125 129
shares issued   03 3003
decrease in fair value of debt   31 397
movement in finance charges netted off bank debt   57 29
net debt arising on bss on acquisition   1746 
special pension contributions   526 251
free cash flow    2778 2944
 
37 adjusted return on equity and adjusted return on capital
adjusted return on equity 
  the group
  –––––––––––––––––––––––––
   2010 2009 
   £m £m
profit before tax   1968 2127
amortisation of intangible assets   02 
exceptional items   197 327
bss post acquisition loss before tax   28 
adjusted profit before tax   2195 1800
opening equity   14604 10182
net pension deficit   310 504
goodwill written off   927 927
opening net assets   15841 11613
closing equity   19518 14604
bss post acquisition loss after tax   28 
shares issued in respect of the bss acquisition   3292 
net travis perkins pension surplus  deficit   231 310
goodwill written off   927 927
closing net assets   16950 15841
average net assets   16400 13727
adjusted return on equity   134 131 no tes t o the financial s tatement s
 
2038604 proof 2 310311
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37 adjusted return on equity and adjusted return on capital continued
adjusted return on capital 
  the group
  –––––––––––––––––––––––––
   2010 2009 
   £m £m
operating profit   2198 2573
amortisation of intangible assets   02 
exceptional items   190 327
bss post acquisition operating losses excluding exceptional items    26 
adjusted operating profit   2416 2246
opening net assets   14604 10182
net pension deficit   310 504
goodwill written off   927 927
net borrowings    4672 10174
exchange adjustment   405 802
opening capital employed   20108 20985
closing net assets   19518 14604
bss post acquisition loss before tax   28 
shares issued in respect of the bss acquisition   3292 
net travis perkins pension surplus  deficit   231 310
goodwill written off   927 927
net borrowings    7736 4672
borrowings arising from the bss acquisition   4693 
exchange adjustment   374 405
closing capital employed   19619 20108
average capital employed   19864 20547
adjusted return on capital   122 109
38 adjusted ratio of net debt to earnings before interest tax and depreciation
adjusted ratio of net debt to earnings before interest tax and depreciation ‘ebitda’ is derived as follows
  the group
  –––––––––––––––––––––––––
   2010 2009 
   £m £m
profit before tax   1968 2127
net finance costs   230 446
depreciation impairments and amortisation   577 587
ebitda under ifrs   2775 3160
exceptional operating items   190 327
bss 2010 preacquisition ebitda   713 
ifrs adjustments not included in covenant calculations    26 25
adjusted ebitda under covenant calculations   3652 2808
net debt under covenant calculations   7014 4131
adjusted net debt to ebitda   192x 147x 126
 
2038604 proof 2 310311
126
five y ear re c ord
consolidated income statement  2010 2009 2008 2007 2006 
  £m £m £m £m £m
revenue  31528 29309 31786 31867 28488
operating profit before amortisation and exceptional items  2390 2246 2715 3199 2780
amortisation  02    
exceptional items  190 327 562  116
operating profit  2198 2573 2153 3199 2896
net finance costs  230 446 690 585 577
profit before tax  1968 2127 1463 2614 2319
income tax expense  555 553 444 761 649
net profit  1413 1574 1019 1853 1670
adjusted return on capital   122 109 129 159 146
adjusted return on equity   134 131 176 236 218
basic earnings per share  696p 884p 686p 1208p 1087p
adjusted earnings per share  772p 752p 969p 1181p 1004p
dividend declared per ordinary share pence  150p  145p 449p 374p
branches at 31 december no  1813 1238 1223 1125 1022
average number of employees no  15792 14528 15414 14580 13831
basic and adjusted earnings per share for 2006 2007 and 2008 have been restated for the impact of the rights issue
five year 
record  
2038604 proof 2 310311
127
five y ear re c ord
consolidated cash flow statement  2010 2009 2008 2007 2006 
  £m £m £m £m £m
cash generated from operations  2823 3198 3376 3039 3233
net interest paid  160 290 630 725 590
swap cancellation receipt  payment  137 287   
income taxes paid  424 273 660 745 573
net purchases of investments property and plant  354 78 824 1189 135
interest in associates  125 129 207  
acquisition of businesses net of cash acquired  2949 10 225 472 109
proceeds from issuance of share capital  03 3003 06 68 69
dividends paid  101  525 481 425
bank facility finance charges    147  
own shares acquired     760 
payment of finance lease liabilities  13 15 21 19 28
repayment of unsecured loan notes  06 01 115 02 03
pension spv  347    
decrease  increase in bank loans  2141 1600 337 986 1437
net decrease  increase in cash and cash equivalents  2963 3518 309 300 02
net debt at 1 january  4672 10174 9410 8044 9824
non cash adjustment  31 368 928 24 
loan notes issued     77 
cash flow from debt and debt acquired   70 1616 473 965 1778
net debt at 31 december  7736 4672 10174 9410 8044
free cash flow  2778 2944 1853 1578 2166
five year 
record 128
 
2038604 proof 2 310311
128
five y ear re c ord
consolidated balance sheet 2010 2009 2008 2007 2006
 £m £m £m £m £m
assets     
noncurrent assets     
property plant and equipment 5260 4990 5345 5050 4264
goodwill and other intangible assets 21019 15153 15139 14922 14445
derivative financial instruments 570 447 803 30 38
interest in associates 457 317 196  
investment property and other investments 19 48 54 55 59
deferred tax asset 164 120 195 45 242
current assets     
inventories 5716 3127 3219 3302 2944
trade and other receivables 6925 3754 3886 4226 3643
assets held for resale 23    
cash and cash equivalents 629 3472 77 263 563
total assets 40782 31428 28914 27893 26198
issued capital 242 209 123 123 122
share premium account 4715 4712 1795 1789 1722
merger reserve 3259    
own shares 834 837 837 839 79
other reserves 144 92 60 271 293
accumulated profits 11992 10428 9041 9025 7273
total equity 19518 14604 10182 10369 9331
noncurrent liabilities     
interest bearing loans and borrowings 7609 7391 10073 8639 7636
derivative financial instruments 42 61 258 298 309
retirement benefit obligations 279 430 699 160 808
long term provisions 360 437 478 137 131
deferred tax liabilities 1269 628 747 753 711
current liabilities      
interest bearing loans and borrowings 756 753 178 1034 971
derivative financial instruments 25    02
trade and other payables 9999 6387 5822 5850 5652
tax liabilities 394 281 91 323 342
shortterm provisions 531 456 386 330 305
total liabilities 21264 16824 18732 17524 16867
total equity and liabilities 40782 31428 28914 27893 26198
five year 
record  
2038604 proof 2 310311
129
notice is hereby given that the fortyseventh annual general meeting of 
travis perkins plc will be held at northampton rugby football club franklin’s 
gardens weedon road northampton nn5 5bg on thursday 26 may 2011 
at 1145 am 
the resolutions
resolutions 1 to 9 inclusive will be proposed as ordinary resolutions 
resolutions 10 to 12 inclusive will be proposed as special resolutions
1   to receive the company’s annual accounts for the financial year ended 
31 december 2010 together with the directors’ report the directors’ 
remuneration report and the auditors’ report on those accounts and on 
the auditable part of the directors’ remuneration report
2   to declare a final dividend for the financial year ending 31 december 
2010 of 10 pence per ordinary share payable to shareholders on the 
register at the close of business on 6 may 2011
3   to reappoint andrew simon as a nonexecutive director who is retiring 
by rotation pursuant to article 71 of the company’s articles of association 
biographical details of andrew simon appear on page 47
4   to reappoint philip jansen as a non executive director who is retiring by 
rotation pursuant to article 71 of the company’s articles of association 
biographical details of philip jansen appear on page 47
5   to reappoint john carter as a director who is retiring by rotation pursuant 
to article 71 of the company’s articles of association biographical details 
of john carter appear on page 46
6   to reappoint deloitte llp chartered accountants as auditors of the 
company to hold office from the conclusion of this meeting until the 
conclusion of the next general meeting of the company at which accounts 
are laid
7   to authorise the directors to fix the remuneration of deloitte llp 
8   that the directors’ remuneration report for the financial year ended 31 
december 2010 set out on pages 62 to 71 be approved
9   that in substitution for all existing authorities the directors be generally 
and unconditionally authorised in accordance with section 551 of the 
companies act 2006 to exercise all the powers of the company to allot
a  shares as defined in section 540 of the companies act 2006 or 
grant rights to subscribe for or to convert any security into shares up 
to an aggregate nominal amount of £8057284 and
b  equity securities as such phrase is to be interpreted in accordance 
with section 560 of the companies act 2006 up to an aggregate 
nominal amount of £16114568 such amount to be reduced by the 
aggregate nominal amount of shares allotted or rights to subscribe for 
or to convert any security into shares in the company granted under 
paragraph a of this resolution 9 in connection with an offer by way 
of a rights issue
i  to ordinary shareholders in proportion as nearly as may be 
practicable to their existing holdings and
ii  to holders of other equity securities as defined in section 5601 
of the companies act 2006 as required by the rights of those 
securities or subject to such rights as the directors otherwise 
consider necessary 
and so that the directors may impose any limits or restrictions and 
make any arrangements which they consider necessary or appropriate 
to deal with treasury shares fractional entitlements record dates 
legal regulatory or practical problems in or under the laws of any 
territory or any other matter 
such authorities to apply until the end of the company’s next annual 
general meeting after this resolution is passed or if earlier until the close 
of business on 30 june 2012 but in each case so that the company 
may make offers and enter into agreements before the authority expires 
which would or might require shares to be allotted or rights to subscribe 
for or to convert any security into shares to be granted after the authority 
expires and the directors may allot shares or grant such rights under any 
such offer or agreement as if the authority had not expired
10   that in substitution for all existing powers and subject to the passing of 
resolution 9 the directors be generally empowered pursuant to section 
570 of the companies act 2006 to allot equity securities as such phrase 
is to be interpreted in section 560 of the companies act 2006 for cash 
pursuant to the authority granted by resolution 9 andor where the 
allotment constitutes an allotment of equity securities by virtue of section 
5603 of the companies act 2006 in each case free of the restriction in 
section 561 of the companies act 2006 such power to be limited
a  to the allotment of equity securities in connection with an offer of 
equity securities but in the case of an allotment pursuant to the 
authority granted by paragraph b of resolution 9 such power shall 
be limited to the allotment of equity securities in connection with an 
offer by way of a rights issue only
i   to ordinary shareholders in proportion as nearly as may be 
practicable to their existing holdings and
ii  to holders of other equity securities as defined in section 5601 
of the companies act 2006 as required by the rights of those 
securities or subject to such rights as the directors otherwise 
consider necessary and so that the directors may impose any limits 
or restrictions and make any arrangements which they consider 
necessary or appropriate to deal with treasury shares fractional 
entitlements record dates legal regulatory or practical problems 
in or under the laws of any territory or any other matter and
b  to the allotment of equity securities pursuant to the authority 
granted by paragraph a of resolution 9 andor an allotment which 
constitutes an allotment of equity securities by virtue of section 
5603 of the companies act 2006 in each case otherwise than in 
the circumstances set out in paragraph a of this resolution 10 up 
to a nominal amount of £1208593 calculated in the case of equity 
securities which are rights to subscribe for or to convert securities 
notice of  
annual general 
meeting
no ti ce of annual general mee ting  
2038604 proof 2 310311
130
into ordinary shares as defined in section 5601 of the companies 
act 2006 by reference to the aggregate nominal amount of relevant 
shares which may be allotted pursuant to such rights 
such power to apply until the end of the company’s next annual general 
meeting after this resolution is passed or if earlier until the close of 
business on 30 june 2012 but so that the company may make offers 
and enter into agreements before the power expires which would or 
might require equity securities to be allotted after the power expires 
and the directors may allot equity securities under any such offer or 
agreement as if the power had not expired
11   that a general meeting other than an annual general meeting may be 
called on not less than 14 clear days’ notice
12   that the company be and is hereby generally and unconditionally 
authorised to make one or more market purchases within the meaning 
of section 6934 of the companies act 2006 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 24171853 representing 10 of the issued share 
capital of the company as at 22 february 2011
b  the minimum price exclusive of expenses which may be paid for an 
ordinary share is its nominal value of 10 pence
c  the maximum price exclusive of expenses which may be paid for 
an ordinary share is an amount equal to 105 of the average of 
the middle market quotations for an ordinary share as derived from 
the london stock exchange daily official list for the five business 
days immediately preceding the day on which that ordinary share is 
purchased
d  this authority expires at the conclusion of the next annual general 
meeting of the company or 30 june 2012 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
andrew pike 
company secretary
lodge way house harlestone road northampton nn5 7ug
22 february 2011
registered in england no 824821
directions to northampton rugby football club can be found on page 133
no ti ce of annual general mee ting
notice of  
annual general 
meeting  
2038604 proof 2 310311
131
1 a form of proxy is enclosed and instructions for its use are shown on 
the form the appointment of a proxy will not prevent a member from 
subsequently attending voting and speaking at the meeting in person in 
which case any votes of the proxy will be superseded
2 a member of the company is entitled to appoint a proxy to exercise all 
or any of his rights to attend speak and vote at a general meeting of 
the company a member may appoint more than one proxy provided 
that each proxy is appointed to exercise the rights attaching to different 
shares a proxy need not be a member 
3 to appoint more than one proxy an additional proxy forms may be 
obtained by contacting the registrars or you may photocopy the form 
please indicate in the box next to the proxy holder’s name the number of 
shares in relation to which they are authorised to act as your proxy please 
also indicate by ticking the box provided if the proxy instruction is one of 
multiple instructions being given all forms must be signed and should be 
returned together in the same envelope
4 the right to appoint a proxy under note 1 above does not apply to 
persons whose shares are held on their behalf by another person and 
who have been nominated to receive communication from the company 
in accordance with section 146 of the companies act 2006 ‘nominated 
persons’ nominated persons may have a right under an agreement 
with the registered shareholder who holds shares on their behalf to be 
appointed or to have someone else appointed as a proxy alternatively if 
nominated persons do not have such a right or do not wish to exercise it 
they may have a right under such an agreement to give instructions to the 
person holding the shares as to the exercise of voting rights 
5 to be effective the instrument appointing a proxy and any authority under 
which it is signed or a notarially certified copy of such authority for the 
annual general meeting to be held at northampton rugby football club 
franklins gardens weedon road northampton nn5 5bq at 1145 am 
on thursday 26 may 2011 and any adjournments thereof must be 
returned to capita registrars pxs 34 beckenham road beckenham 
kent br3 4tu by 1145 am on 24 may 2011 alternatively you may 
submit your proxy form online by accessing the shareholder portal at 
wwwcapitaregistrarscom logging in and selecting the ‘proxy voting’ link 
if you have not previously registered for electronic communications you 
will first be asked to register as a new user for which you will require your 
investor code which can be found on the enclosed proxy form your share 
certificate or dividend tax voucher family name and post code if resident 
in the uk 
6 crest members who wish to appoint a proxy or proxies through 
the crest electronic proxy appointment service may do by using the 
procedures described in the crest manual 
crest personal members or other crest sponsored members and 
those crest members who have appointed a voting service providers 
should refer to their crest sponsors or voting service providers who 
will be able to take the appropriate action on their behalf
in order for a proxy appointment made by means of crest to be 
valid the appropriate crest message a ‘crest proxy instruction’ must 
be properly authenticated in accordance with euroclear uk  ireland 
limited’s specifications and must contain the information required for 
such instructions as described in the crest manual the message 
regardless of whether it constitutes the appointment of a proxy or an 
amendment to the instruction given to a previously appointed proxy must 
in order to be valid be transmitted so as to be received by the company’s 
agent id ra10 by the latest times for receipt of proxy appointments 
specified in the notice of meeting 1145 am on 24 may 2011 for this 
purpose the time of receipt will be taken to be the time as determined 
by the timestamp applied to the message by the crest application host 
from which the company’s agent is able to retrieve the message by 
enquiry to crest in the manner prescribed by crest after this time 
any change of instructions to proxies appointed through crest should be 
communicated to the appointee through other means
crest members and where applicable their crest sponsors and 
voting service providers should note that euroclear uk  ireland limited 
does not make available special procedures in crest for any particular 
messages normal system timings and limitations will therefore apply in 
relation to the input of crest proxy instructions it is the responsibility 
of the crest member concerned to take or if the crest member is a 
crest personal member or sponsored member or has appointed a voting 
service providers to procure that his crest sponsor or voting service 
providers takes such action as shall be necessary to ensure that a 
message is transmitted by means of the crest system by any particular 
time in this connection crest members and where applicable their 
crest sponsors or voting service providers are referred in particular to 
those sections of the crest manual concerning practical limitations of 
the crest system and timings the crest manual can be reviewed at 
wwweuroclearcomcrest
the company may treat as invalid a crest proxy instruction in 
the circumstances set out in regulation 355a of the uncertificated 
securities regulations 2001
in each case the proxy appointments must be received by the company 
not less than 48 hours before the time appointed for holding the meeting 
or any adjournment thereof
7 only those members entered on the register of members of the company 
as at 600 pm on 24 may 2011 shall be entitled to attend or vote at the 
meeting in respect of the number of shares registered in their name 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
8 reference to the register means the issuer register of members and the 
operator register of members maintained in accordance with regulation 
20 of the uncertificated securities regulations 2001
9 the following documents will be available for inspection at the registered 
notes to the 
notice of annual 
general meeting
no tes t o the no ti ce of annual general mee ting  
2038604 proof 2 310311
132
office of the company during usual business hours on any weekday 
saturdays sundays and public holidays excluded from the date of this 
notice to the date of the meeting and at northampton rugby football 
club from 1115 am on the day of the meeting until the conclusion of the 
meeting 
●
   copies of contracts of service of directors and non–executive directors’ 
letters of appointment with the company or with any of its subsidiary 
companies 
●
  the register of directors’ interests kept by the company 
●
  a copy of the company’s articles of association
●
  a statement giving particulars of directors’ relevant transactions
10  at 22 february 2011 being the latest practicable date before publication 
of this notice the issued share capital of the company consisted of 
241718527 ordinary shares carrying one vote each therefore the total 
voting rights in the company as at 22 february 2011 was 241718527
11  a person to whom this notice is sent who is a person nominated under 
section 146 of the companies act 2006 to enjoy information rights a 
‘nominated person’ may under an agreement between himher and the 
shareholder by whom heshe was nominated have a right to be appointed 
or to have someone else appointed as a proxy for the meeting if a 
nominated person has no such proxy appointment right or does not wish 
to exercise it heshe may under any such agreement have a right to give 
instructions to the shareholder as to the exercise of voting rights
12  the statement of the rights of members in relation to the appointment 
of proxies in paragraphs 1 to 6 above does not apply to a nominated 
person the rights described in these paragraphs can only be exercised 
by registered members of the company
13  any corporation which is a member can appoint one or more corporate 
representatives who may exercise on its behalf all of the same powers as 
the corporation could exercise if it were an individual member
14 under section 527 of the companies act 2006 members meeting the 
threshold requirements set out in that section have the right to require 
the company to publish on a website a statement setting out any matter 
relating to i the audit of the company’s accounts including the auditor’s 
report and the conduct of the audit that are to be laid before the meeting 
or ii any circumstance connected with an auditor of the company ceasing 
to hold office since the previous meeting at which annual accounts and 
reports were laid in accordance with section 437 of the companies act 
2006 the company may not require the shareholders requesting any 
such website publication to pay its expenses in complying with sections 
527 or 528 of the companies act 2006 where the company is required 
to place a statement on a website under section 527 of the companies 
act 2006 it must forward the statement to the company’s auditor not 
later than the time when it makes the statement available on the website 
the business which may be dealt with at the meeting includes any 
statement that the company has been required under section 527 of the 
companies act 2006 to publish on a website
15 under section 338 and section 338a of the companies act 2006 
members meeting the threshold requirements in those sections have 
the right to require the company i to give to members of the company 
entitled to receive notice of the meeting notice of a resolution which may 
properly be moved and is intended to be moved at the meeting andor 
ii to include in the business to be dealt with at the meeting any matter 
other than a proposed resolution which may be properly included in the 
business a resolution may properly be moved or a matter may properly 
be included in the business unless a in the case of a resolution only 
it would if passed be ineffective whether by reason of inconsistency 
with any enactment or the company’s constitution or otherwise b it 
is defamatory of any person or c it is frivolous or vexatious such a 
request may be in hard copy form or in electronic form must identify 
the resolution of which notice is to be given or the matter to be included 
in the business must be authorised by the person or persons making it 
must be received by the company not later than 13 april 2011 being the 
date six clear weeks before the meeting and in the case of a matter to 
be included in the business only must be accompanied by a statement 
setting out the grounds for the request
16 shareholders and their proxies will have the opportunity to ask questions 
at the meeting when invited by the chairman if you wish to ask a 
question please wait for a company representative to bring you a 
microphone it would be helpful if you could state your name before you 
ask your question questions may not be answered at the meeting if they 
are deemed not to be in the interests of the company or the good order of 
the meeting would interfere unduly with the preparation for the meeting 
or involve the disclosure of confidential information or if the answer has 
already been given on a website the chairman may also nominate a 
company representative to answer a specific question after the meeting 
or refer the response to the company’s website
17 a copy of this notice and other information required by section 311a 
of the companies act 2006 can be found at wwwtravisperkinsplccom
investorcentreirasppagehome
no tes t o the no ti ce of annual general mee ting
notes to the 
notice of annual 
general meeting  
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133
from the south via the m1
exit off motorway at junction 15a and follow the signs towards sixfields at 
roundabout with tgi fridays on the right and a bp petrol station on the left 
carry straight on up the hill at cineworld roundabout turn right towards the 
town centre go straight over the next roundabout sainsbury’s is on the left 
before the roundabout and wickes on the right after the roundabout and set of 
traffic lights continue on that road weedon road the entrance to the saints 
is on the right immediately after beacon bingo follow signs for vip car park 
off weedon road
from the north via the m1
exit off motorway at junction 16 and follow the a45 to northampton at 
cineworld roundabout continue straight on and follow directions from the 
south
from the east peterborough cambridge wellingborough
follow a45 to m1 junction 15 head north to junction 15a then follow 
directions from the south
from welford market harborough
aim towards the kingsthorpe area of northampton turn right at the major set 
of traffic lights the cock hotel is on the corner signposted sixfields continue 
on this road until you get to cineworld roundabout approx 3 miles then 
continue as from the south
from the railway station
turn right out of the station continue past thomas a becket pub church and 
co factory and bus station at fork in road bear left and franklin’s gardens is 
on your left walk takes approx 15 minutes
nearest airports
london luton and nottingham east midlands
further information
for detailed directions you might want to try the following websites
●
 multimap wwwmultimapcom
●
 the aa wwwtheaacom
●
 the rac wwwraccouk
for further details about the venuewwwnorthamptonsaintscouk
the annual general meeting is to be held at 
northampton rugby football club
northampton rugby football club 
franklin’s gardens  
weedon road  
northampton nn5 5bg
the travis perkins agm will be held in  
the captains lounge and the rodber suite 
parking is directly outside in the vip car park 
follow vip car park signs off weedon road
directions to 
northampton rugby 
football club 
d ire cti ons t o nor thamp t on rugb y f oo tball cl ub   
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134
shareholder enquiries
shareholder enquiries should be directed to the company secretary at the 
company’s registered office
lodge way house 
lodge way
harlestone road
northampton nn5 7ug 
telephone 01604 752424
email cosectravisperkinscouk
or to the company’s registrars
capita registrars 
the registery
34 becknham road
beckenham
kent br3 4tu
 
telephone 0871 664 0300 830am to 530pm monday – friday 
calls cost 10p per minute plus network extras
email ssdcapitaregistrarscom
should your query relate to a pensions matter please email 
pensionstravisperkinscouk 
or if your query relates to a marketing matter please email 
marketingtravisperkinscouk 
financial diary
announcement of 2010 annual results 23 february 2011
exdividend date 4 may 2011
record date 6 may 2011
annual general meeting 26 may 2011
payment of final dividend 31 may 2011
announcement of 2011 interim results july 2011
announcement of 2011 annual results february 2012
agm – catering arrangements
it has always been the company’s custom to provide a light luncheon for 
shareholders following the agm and a buffet luncheon will be available you 
need not notify the company in advance if you would like lunch
internet
there are sites on the internet that carry a range of information about the group 
and its principal brands products and services at the following addresses 
wwwtravisperkinsplccom investor relations site
wwwtravisperkinscouk 
wwwtpmanagedservicescouk
wwwcityplumbingcouk 
wwwccfltdcouk 
wwwhiretravisperkinscoukhire  
wwwkeylinecouk 
wwwkeylinecoukhire 
wwwwickescouk
wwwtilegiantcouk  
wwwbenchmarxjoinerycouk 
wwwbenchmarxshowroomcouk end user site
wwwiflocouk 
wwwtoolstationcouk
wwwtradematecouk  
wwwwickeskitchenscouk
www4tradeproductscouk  
wwwselfbuildgroupcouk
wwwbssgroupcom 
wwwptsplumbingcouk
wwwbssindustrialcouk  
wwwfpwholesalecouk 
wwwdhssparescouk  
wwwbuckandhickmancom 
wwwbirchwoodpricetoolscom
 these sites allow credit account holders to order online through trademate 
with the exception of the wickes tile giant and toolstation sites which allow 
online ordering by secure card transaction 
most of the sites provide information about branch locations and allow 
access to prices and 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 group
electronic communication
in accordance with the companies act 2006 and the company’s articles of 
association the company is allowed to use its website to publish statutory 
documents and communications to shareholders such as the annual report 
and accounts and the notice of the agm you can therefore view or download a 
copy of the annual report and accounts and the notice of the agm by going to 
other 
shareholder 
information 
o ther shareholder inf ormati on   
2038604 proof 2 310311
135
other 
shareholder 
information 
our website at wwwtravisperkinsplccom see section called ‘investor centre’ 
if you received a hard copy of this report in the post then you will not have 
consented to this method of publication should you now wish to consent to 
this method of publication you should contact 
capita registrars 
freepost rlyxgztukrrg sas  
the registry  
34 beckenham road 
beckenham
kent br3 9za 
by reducing the number of communications sent by post it will not only 
result in cost savings to the company but also reduce the impact that the 
unnecessary printing and distribution of reports has on the environment 
please note that if you consent to website publication you will continue to be 
notified each time that the company places a statutory communication on the 
website this notification will be sent to you by post however you may also 
choose to receive notifications by email and we would encourage you to do so 
if you wish to receive these notifications by email you should register at www
capitashareportalcom and follow the instructions see registrar’s online 
service below
please telephone capita registrars on 0871 664 0391 within the uk calls 
cost 10p per minute plus network extras lines are open 900am to 530pm 
monday – friday or 44 20 8639 3367 if calling from outside the uk if you 
have any queries
notes
1  before consenting to receive documents and communications via the 
website shareholders should ensure that they have a computer with 
internet access and the adobe acrobat reader facility the adobe acrobat 
reader software may be obtained via the website free of charge
2  if you elect to receive notifications of the publication of the documents and 
communications on the website electronically it will be your responsibility 
to notify our registrars capita of any subsequent change in your email 
address or other contact details
3 if you are not resident in the united kingdom it is your responsibility 
to ensure that you may validly receive documents and communications 
electronically either generally or in relation to any particular document 
or communication without the company being required to comply with 
any governmental or regulatory procedures or any similar formalities the 
company may deny electronic access to documents and communications 
relating to certain corporate actions in respect of those shareholders 
who it believes are resident in jurisdictions where it is advised that to 
provide such access would or may be a breach of any legal or regulatory 
requirements
4   the company’s obligation to provide shareholder documents to you is 
satisfied when it transmits an electronic message the company is not 
responsible for any failure in transmission for reasons beyond its control 
any more than it is for postal failures in the event of the company 
becoming aware that an electronic communication to you has not been 
successfully transmitted a further two attempts will be made if the 
transmission is still unsuccessful a hard copy of the relevant notification 
will be posted to your registered address
5   your registration to receive electronic communications and your relevant 
contact address details will stand until such time as the company receives 
alternative instructions from you by email or in writing
6   the company takes all reasonable precautions to ensure no computer 
viruses are present in any electronic communication it transmits but the 
company shall not be responsible for any loss or damage arising from 
the opening or use of any email or attachments sent by the company 
or on its behalf the company recommends that shareholders subject 
all messages to computer virus checking procedures any electronic 
communication received by or on behalf of the company including 
the lodgement of an electronic proxy form that is found to contain any 
computer virus will not be accepted
7   the company reserves the right irrespective of your election to revert 
to sending hard copy documentation by post whenever it considers it 
necessary or desirable to do so
capita registrars
the company’s registrars capita registrars ‘capita’ provide a number of 
services that as a shareholder might be useful to you
registrar’s online service
by logging onto wwwcapitashareportalcom and following the prompts 
shareholders can view and amend various details on their account please 
note that you will need to register to use this service for which purpose you 
will require your unique investor code which can be found on your share 
certificate proxy card or dividend tax voucher
share dealing services
capita offers an online and telephone share dealing service which is available 
by logging on to wwwcapitadealcom or telephoning 0871 664 0346 calls 
cost 10p per minute plus network extras lines are open 800am to 430pm 
o ther shareholder inf ormati on   
2038604 proof 2 310311
136
monday – friday for the online service capita’s commission rates are 1 
of the value of the deal minimum £20 maximum £75 and for the telephone 
service capita’s commission rates are 150 of the value of the deal 
minimum £25 maximum £10250 
dividend reinvestment plan ‘drip’
this is a scheme which allows you to use your dividends to buy further 
shares in travis perkins for any shareholders who wish to reinvest dividend 
payments in the company a facility is provided by capita irg trustees ltd in 
conjunction with capita registrars under this facility cash dividends are used 
to purchase additional shares shares are bought on the dividend payment 
date at the then current market price any cash left over which is insufficient 
to purchase a whole share will be carried forward and held without interest 
in a client money bank account any shareholder requiring further information 
should contact
capita on 0871 664 0381  
calls cost 10p per minute plus any network extras from within the uk lines 
are open from 900 to 530 pm monday – friday 
if calling from overseas 44 0208 639 3402 fax 0208 639 1023 
email sharescapitaregistrarscom or visit wwwcapitaregistrarscom 
duplicate share register accounts
if you are receiving more than one copy of our report it may be that your 
shares are registered in two or more accounts on our register of members if 
that was not your intention you might consider merging them into one single 
entry please contact capita who will be pleased to carry out your instructions
overseas shareholders
capita are now able to provide you with a service that will convert your sterling 
dividends into your local currency at a competitive rate you can choose to 
receive payment directly into your bank account or you can be sent a draft in 
your local currency further details are available from
capita registrars 
freepost rlyxgztukrrg sas
the registry
34 beckenham road
beckenham
kent br3 9za
telephone uk 0871 664 0385 
calls cost 10 pence per minute plus network extras lines are open from 
900am to 530pm monday – friday or 44 20 8639 3405 from outside the 
uk or by logging on to wwwcapitaregistrarscominternational
o ther shareholder inf ormati on 
other 
shareholder 
information  2038604  01042011 proof 3 2038604  01042011 proof 3
this document is important and requires your immediate attention 
if you are in any doubt as to what action you should take you are 
recommended to seek your own financial advice from your stockbroker 
or other independent adviser authorised under the financial services 
and markets act 2000 if you have sold or transferred all of your shares 
in travis perkins plc please forward this document together with the 
accompanying documents as soon as possible either to the purchaser or 
transferee or to the person who arranged the sale or transfer so they can pass 
these documents to the person who now holds the shares
printed on 
revive 50 silk a recycled paper containing 50 recycled 
waste and 50 virgin fibre and manufactured at a mill 
certified with iso 14001 environmental management 
standard the pulp used in this product is bleached using 
an elemental chlorine free process ecf and
tauro offset made from virgin wood fibre sourced mainly 
from sustainable forests in the ec it is bleached using 
a totally chlorine free tcf process this material can 
be disposed of by recycling or incineration for energy 
and composting
designed by rwh design consultants 
photography by charles ward
bss photography by barry willis
printed by jones and palmer
robert steward yard sales assistant
front cover mark bonhamyard supervisor
scott richardson sales assistant 2038604  01042011 proof 3 2038604  01042011 proof 3
travis perkins plc
lodge way house · harlestone road · northampton nn5 7 ug 
telephone 01604 752 424
tra vi s per ki ns p l c · 2010 annua l repor t and a c c ount s 2010
2010 annual report  acc ounts
a leader in builders merchanting and home impr ovement retailing travis perkins plc


Summary:
  
2038604 proof 2 310311
introduction
the group made excellent progress 
in 2010 – a year in which our organic 
development strategy against a 
background of depressed levels of 
construction activity produced a strong 
financial performance with further 
market share gains and impressive 
increases in profits we also strengthened 
considerably the group’s strategic 
position and prospects in the uk through 
the completion of the bss transaction at 
the end of the year
the prevailing culture within the travis 
perkins group is to allow managers to 
manage to anticipate markets and trends 
with our customers and to swiftly find 
sensible and workable solutions to our 
customers’ requirements our highly 
efficient central service functions are 
there to underpin and support the activity 
of our branch and operational managers 
this approach has served us well during 
the past 12 months it is our ethos  
we are a quality business consisting of 
quality people
chief executive’s 
review of  
the year
for the year ended 31 december 2010
we are also a progressive business we get on and do things with an 
unshakable focus on delivering excellent products and service we were 
able to achieve all the main ambitions we set ourselves for 2010 in 
spite of a challenging economic climate particularly in the building and 
refurbishment industry
the group outperformed its markets by 4 to 6 in 2010 on a like
forlike basis in both merchanting and retail we had good growth in 
sales taking market share and as a result grew our profit before tax 
and exceptional items and amortisation by 20 we have the systems 
and tools in place to continue our organic growth and we enter 2011 
with confidence
we pursued our acquisition target bss for most of the year finally 
succeeding in completing the acquisition in december we now look 
forward to working with our new colleagues to grasp the excellent oppor
tunities presented by this transaction
performance
all 11 businesses within the group performed relatively better through 
the recession than their sector benchmarks this was largely due to the 
intensive and wideranging groundwork we began in 2008 to ensure we 
were better equipped than our rivals to cope with changes in the market 
and the economy
throughout this annual report consistent with our approach last year 
the term ‘adjusted’ has been used to signify that the effects of excep
tional items and amortisation of intangible assets have been excluded 
from the disclosures being made the exceptional operating charge of 
£190m in 2010 relates to costs associated with the group’s acquisition 
of bss in 2009 the exceptional income related to a £327m pension 
scheme curtailment gain which arose when future increases in pension 
scheme members’ pensionable salaries were capped
for 2010 the group reported revenue up £222m at £3153m 2009 
£2931m whilst the market overall was broadly flat in value our 
revenues increased mainly through the selfhelp initiatives incorporated 
within our organic strategy this revenue increase drove adjusted oper
ating profit up 6 to £239m 2009 £225m adjusted profit before tax 
up 20 to almost £217m 2009 £180m and adjusted earnings per 
share up 3 to 772 pence 2009 752 pence the revenue increase 
of 76 comprised an increase of 50 in likeforlike ‘lfl’ sales with 
network expansion accounting for growth of 26 
excluding bss where we consolidate the last two weeks trading 
over the christmas shutdown adjusted group operating margin rose by 
01 to 78 2009 77 this reflects our strategy of investing in 
geoff cooper  
chief executive
14 15
chief e xe c u tive’s review of the year
 
2038604 proof 2 310311
improvements to our customer propositions whilst adjusted operating 
margin in the retail division improved by 01 to 59 2009 58 
merchanting division adjusted operating margin remained at 88 
including the effect of the bss acquisition adjusted operating margin 
including bss’ post acquisition loss of £26m fell by 01 to 76 
note 5c 
after including exceptional items and amortisation of intangible assets 
in both years the group recorded a decrease of 7 in pbt to £1968m 
2009 £2127m and a decrease of 21 in earnings per share to 696 
pence 2009 884 pence 
the group generated free cash flow of £2778m in 2010 2009 
£2944m a 56 decrease yearonyear overall including the 
cash outflow relating to the acquisition of bss of £4769m net debt 
increased to £7736m 2009 £4672m for covenant purposes net 
debt was £7014m 2009 £4131m giving a net debt  ebitda ratio of 
192 times 2009 147 times and interest cover of 189 times 2009 
107 times 
including the effect of our £624m acquisition of bss group share
holders’ funds increased by £491m
the group has started the year well with lfl sales in january up 22 
in merchanting 8 up in bss and 12 in retail on a delivered basis 
wickes core up 12 kitchen and bathroom ‘kb’ up 15 reflecting 
the weak comparatives from the snow affected january 2010 the first 3 
weeks of february have also traded well with a 10 increase in lfl sales 
in merchanting 5 in bss and a 2 increase in retail on a delivered 
basis wickes core up 3 kb down 2 
in january wickes’ kb orders were down 3 and in february 
they were down 36 this reflects a combination of prevat increase 
advanced ordering in late 2010 rather than early 2011 and recent 
competitor discounting in this weak kb market our kb gross margins 
are ahead of 2009
these strong performance ratios are directly related to our managers’ 
expertise and experience our direction is heavily influenced by our 
operating managers who tell us what is really going on in the market 
no one is better placed to know what our customers are doing and 
what they need to carry out their work than our branch and operational 
managers gathering intelligence from customers is the only way we can 
really know what is happening at ground level thanks to our regular 
customer surveys and the experience and knowledge of our managers 
our antennae are highly developed
as a result the group was able to identify key turns in the course of 
the economic cycle and as a consequence
●
  take quick action to reduce costs as construction activity fell at the 

“
no one is better placed to know what our customers are doing 
and what they need to carry out their work than our branch and 
operational managers”
outset of the recession
●
  begin a programme of investing in growing our business as markets 
began to stabilise
●
 identify swiftly the opportunity and benefits of acquiring bss
we combine systems and processes which track a range of lead indi
cators with our managers’ instinct and close knowledge of customers’ 
views as a result of those relationships we know what drives our market 
and we know how to adapt and respond to changing market conditions
 
markets and our response 
we predicted in merchanting a gradual recovery in 2010 from the sharp 
contraction of activity caused by the recession which started towards 
the end of 2008 in contrast we expected a contraction in retail markets 
in 2010 following the fading of the artificial support consumers received 
from a fall in housing costs in 2009 we were broadly correct with the 
aggregate value of these two segments of the market being broadly flat 
despite continued relatively high product cost and price inflation
our tracking of lead indicators told us that construction activity levels 
were improving at the end of 2009 and the beginning of 2010 when 
the uk went into the recession at the end of 2008 builders were doing 
more and more ‘second fix’ internal work but less and less heavyduty 
foundation and block and brick building work in effect the builders were 
completing projects that were already underway this changed towards 
the end of 2009 when a slow recovery in mortgage activity encour
aged more housing related building works including the opening up of 
many new housing sites whilst this directly boosted the merchanting 
market the retail market had a tough time as inflation bit into consumers’ 
purchasing power
we responded to this turn in the market by restarting many of the 
improvement programmes that drive our organic growth strategy the main 
programmes boosted at the beginning of 2010 cover product availability 
ranging delivery services multi channel trading and account manage
ment behind these programmes significant support is provided by our 
central technology supply chain procurement and marketing functions
successful deployment of these programmes meant we were able to 
outperform in both merchanting and retailing sectors by anticipating what 
was likely to confront us and be sufficiently flexible in our working opera
tions to manage fluctuations in the market
so what is behind this quality of flexibility that we have it is because 
of the culture of our managers and the way we organise ourselves we 
try to give our managing directors boards and branch managers as much 
autonomy as possible in effect we leave our businesses and branches   
2038604 proof 2 310311
merchanting productivity  
per employee £k  
0
100
200
chief e xe c u tive’s review of the year
with the freedom to trade in the best way they deem appropriate they 
decide on the hiring of staff on remuneration on the products they stock 
and the pricing of products our key colleagues in branches have day
today working relationships with all their customers from householders 
and sole traders to major construction businesses and they can deter
mine how to manage those customers and on what terms those deci
sions are not set in stone from a head office policymaker each individual 
business board and branch manager has the freedom to work within 
a sensible business plan aimed at delivering performance on a broad 
range of financial and service metrics 
the central functions are made to report to the business rather than 
the other way round if the managing director of a business has identified a 
significant issue or a potential problem he or she has the ability to contact 
a senior director at head office and demand an immediate response
it is our culture of ‘getting on and doing things’ that makes all our busi
nesses flexible and quick to respond every day we see many examples of 
our people getting on with fixing things solving problems on behalf of our 
customers and suppliers and improving our businesses
merchanting division
the four businesses that operate under the travis perkins brand all 
performed strongly during 2010 joe mescall chairman of the general 
merchanting division a superb merchant who has been with the group 
since 1974 and his four managing directors and their boards have all 
had an outstanding year 
merchanting division sales increased by 80 with sales from new 
branch openings contributing 07 and lfl sales improving 73 the 
lfl increase comprised 36 of price inflation and 37 increase in 
volumes we estimate that both our general and specialist merchanting 
operations recorded a performance of around 4 ahead of the market 
with lfl sales in general merchanting increasing by 67 and specialist 
merchanting increasing by 85 
these performances were achieved by improvements in our overall 
service to builders including better product availability to ensure that 
constructors and builders had sufficient stock to complete entire projects 
a great deal of effort has been concentrated on being able to supply 
products in the right quantity and at the right price our regular customer 
research indicates that over the year we have consolidated our reputation 
for being the merchant who can supply what customers need when they 
need it because of our growing international sourcing expertise we can 
increasingly supply both unique and routine products at more competitive 
2007 2008 2009 2010 2006
206 220 216 215 228
robert steward yard sales assistant kevin hancock driver robert newton branch manager
16  
2038604 proof 2 310311
chief e xe c u tive’s review of the year
the general merchanting business 
produced strong likeforlike sales
f oc us on o rga ni c growth
paul dancer tool hire manager
robert steward yard sales assistant
left robert newton branch manager right eliot linzeyjones senior sales assistant 
the general merchanting 
business produced strong 
likeforlike sales growth 
and increased market share 
whilst eight new branches 
were opened in 2010
17 18
chief e xe c u tive’s review of the year
 
2038604 proof 2 310311
prices than our rivals this aspect of our work relies on the vital support of 
our buying and supply chain teams working in tandem
as activity levels began to increase the travis perkins branches were 
there to support customers and we saw strong sales growth and an 
increase in operating profits in general terms when you ask a builder 
why they go to a particular supplier they give a dozen or so reasons for 
their choice travis perkins likes to be the number one choice in seven or 
eight of those decisionmaking criteria and we make sure we are
arthur davidson another great merchant with many years experience 
chairs our specialist division he and his team produced a superb perfor
mance from their four businesses whilst strengthening their strategic 
position with significant development activity
keyline
our heavy building materials and civils and drainage specialist experi
enced the toughest year of all 11 of our businesses as a result of the 
obvious squeeze in the new construction market our customers needed 
to repair a house but they didn’t have to build a new property but in line 
with our group ethos keyline responded imaginatively and instantly with 
a boost to its customer service under the banner ‘best in town’ even 
though the market was undeniably challenging keyline under the direc
tion of managing director andrew harrison led the market by supplying 
the best range of products to satisfy demand from customers this initia
tive enabled keyline to convince customers that they were first choice for 
civils products with keyline recording likeforlike sales growth ahead of 
the general merchanting division and a healthy increase in profits
city plumbing
our acquisition of bss after a protracted ninemonth process overshad
owed the activity of city plumbing since the two businesses compete 
in the same market however we were delighted by the team’s ability 
to maintain their enthusiasm and focus throughout the result is that 
managing director john frost and his team completed an impressive year 
improving their sales outgrowing their market and increasing profits in 
fact cps recorded the highest likeforlike sales growth of any of our 
mature merchant businesses that was a considerable achievement under 
the circumstances the team put together a progressive and exciting 
initiative to focus on what plumbers really require under the banner ‘what 
good looks like’ this ethos swept through the whole operation
benchmarx
our specialist kitchen and joinery business which sells to the trade under 
the guidance of managing director chris larkin is only four years old 
having completed the first two phases in growing the business namely 
its launch and then its refinement chris took over in the third phase – to 
drive profits this involved looking at fresh opportunities to attract new 
customers to benchmarx chris did an excellent job performing beyond 
our expectations motivating his team and strengthening the engagement 
of management chris also created and led a new initiative to install 
benchmarx ‘implants’ in other group trading brands offering good cross
selling opportunities this has been successful and will be pursued in 
2011 sales growth has been very strong outstripping the market leader 
by some considerable distance our budgets suggested that the business 
would make a small loss in its third year benchmarx has reached profit
ability ahead of schedule
ccf
our specialist distributor of building materials for interiors contractors 
had another excellent year led by kieran griffin its recently appointed 
managing director kieran spearheaded efforts to further widen ccf’s 
product range under its ‘one stop shop’ concept this together with a 
range of other operational initiatives enabled ccf to significantly outper
form the market in likeforlike sales growth and increase operating profits 
 
retail
all retail markets were tough in 2010 with nonfood particularly our own 
segment of diy badly affected by falling consumer confidence against 
this backdrop our retail division outperformed its market by around 6 
with further improvements to our customer proposition particularly in our 
multichannel operations where our superior technologies and fulfilment 
operations have helped us make significant gains in revenues we are 
pleased that with increasing use of retail channels by tradesmen our 
market share gains have been greatest in that segment of the market 
retail division total sales were up by 23 to £1003m 2009 
£981m with sales from new branch openings contributing 21 a 
33 sales increase arising from price inflation was offset by a 31 
volume decrease resulting in a lfl sales increase of 02 within the 
retail division’s overall lfl performance lfl sales for the full year of 
wickes’ core products were down by 20 and on the same basis kb 
sales were ahead by 95 
wickes
we continued to develop the wickes nationwide comprehensive televi
sion advertising campaign ‘wickes it’s got our name on it’ was intro
duced at the end of 2008 and has continued to establish huge brand 
kelli pennells branch assistant matt hastings sales assistant lisa massey assistant branch manager 19
chief e xe c u tive’s review of the year
 
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ccf widened its product range 
under its ‘one stop shop’ concept
f oc us on o rga ni c growth
chris williams warehouse assistant
mark smith warehouse assistant 20
chief e xe c u tive’s review of the year
 
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recognition and awareness managing director jeremy bird and his 
team have seen a considerable uplift in wickes’ sales and market share 
as a result we were initially reluctant to embark on this campaign since 
wickes is not represented in every town and city in the uk however the 
advertisements were impactful from the start the early concentration 
was on kitchens and bathrooms before moving to a broader range of 
general diy products
the advertising campaign was accompanied by improvements to 
ranges pricing and delivery options and complemented by an increas
ingly powerful multichannel approach as a result wickes achieved like
forlike sales growth and improved operating profits in a falling market 
– a remarkable performance and a tribute to the attractiveness of wickes 
as a nononsense home improvement retailer 
tile giant
mo iqbal started the business and continues to drive it forward with great 
passion and effort travis perkins acquired the company in late 2007 
when it had 29 stores mainly in the midlands there are now 101 and 
tile giant is a serious challenger in the market the main focus has been 
to develop an outstanding product range initially tile giant concentrated 
on ceramics but following the acquisition of two other businesses that 
specialised in other segments of the market its product offering has 
been strengthened significantly the result is tile giant offers its growing 
number of customers a wide range of excellent products at great prices 
all under one roof this has driven a positive and marketleading likefor
like sales performance in 2010
retail productivity  
per employee £k  
0
100
200
189 197 186 198 186
mark davis branch manager
2006 2007 2008 2009 2010 21
chief e xe c u tive’s review of the year
 
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toolstation
it was another outstanding year for toolstation driven by the entrepre
neur mark goddard watts when the group acquired a 30 stake in 
the business in april 2008 toolstation had 12 stores but as a result 
of the concept being rolled out so effectively there are now 84 based 
on its worldclass inhouse developed technology it continues to be 
a lowcost business that delivers outstanding product availability and 
value to its customers 
investors
throughout the course of the recession the group has been strongly 
backed by investors the decision to bring stability to our balance sheet 
with the rights issue in may 2009 has been of great benefit to the group 
investors taking up their rights will have seen an excellent return for their 
support to the company we meet our investors at least twice a year and 
we continue to benefit from their support
our banks and us note holders continue to be similarly very supportive 
of the group when there was a great deal of uncertainty in the economy 
and in the construction industry in particular we informed investors and 
bankers what we thought would happen and what we could do to counter 
the conditions we performed ahead of our targets and retained confi
dence in our ability to run our businesses robustly and effectively
acquisition of bss
we approached the bss opportunity with great confidence because we 
believed bss was strategically strong and financially very attractive 
although we had a considerable amount of plumbing business through 
our various brands we were in the second tier of national companies 
operating in the market by acquiring bss and combining our activities 
the group has been promoted to a leading position in the market making 
us a powerful force in serving customers and helping suppliers meet their 
own strategies
the group’s published target for synergies arising from the bss 
acquisition is £25m which comprises £19m in respect of goods for 
resale and £6m of overhead savings we remain confident of achieving 
these targets
the integration programme has commenced but it is too early to 
provide any further meaningful insight about the synergies available to 
the group however it is clear that achieving the target will require a 
substantial effort from teams across the business and in particular the 
allocation of considerable resource to and investment in supply chain 
and it we aim to provide an update at the interim stage this year on our 
progress towards achieving these synergies
management
because of our scale and our focus on supplying what our customers 
want we have consistently achieved the highest return on sales amongst 
our peers the group’s prerecession operating margin was typically 
more than half as much again when compared to our national competi
tors in the more recent tougher economic climate whilst our operating 
margin has come down by about a quarter our peers have suffered 
proportionately larger falls
we put a great deal of this difference down to the attitude of our 
managers as i discussed earlier they are highly skilled at anticipating 
problems and finding sensible and swift solutions they are on top of 
their business so that they respond to tough times by closely managing 
gross margin and reducing costs the disaggregated culture of decision 
making and the prevailing ethos of running our business has taken many 
years to establish 
our positive management environment makes for a more rewarding 
place to work following the actions we took to slim down our top 
management resources at the start of the recession we have not seen 
many departures from our director group of 202 people since then
every single branch in the group is subject to a detailed review of 
its performance analysing sales contributions from all of them branch 
managers are highly motivated individuals who are keen to perform at 
their optimum level we reward our staff well and they are incentivised 
through effective bonus schemes 
travis perkins in the community
characteristic of how the group operates driven from the ground 
upwards we continue to move forward our ‘1000 projects’ community 
programme
every branch is encouraged to establish a community project inspired 
by a personal contact completed in their spare time and using our own 
materials it’s not mandatory but the response rate has been exception
ally high the projects create a tremendous sense of teamwork and 
goodwill the initiative was launched when we reached the milestone of 
1000 branches with the inclusion of bss we now operate from over 
1800 branches and we are reviewing what the next version of this 
programme looks like 
i believe the work in our ‘1000 projects’ initiative contributes greatly 

“
branch managers are highly motivated individuals who are 
keen to perform at their optimum level” 22
chief e xe c u tive’s review of the year
 
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to improving engagement of staff in a vast majority of cases employees 
want to be recognised for what they do and many like being part of a 
winning and harmonious team the ‘1000 projects’ works were innova
tive and helped us to do things that move beyond clichés about business 
in the community 
the board of directors was also encouraged to take part in a commu
nity project last year board members spent a day at battersea park in 
london digging and creating a community garden
the group’s charitable donations were in the region of £200000 five 
years ago last year we together with our colleagues customers and 
suppliers contributed £17m
our charity fundraising activity continues to play a key role in engaging 
our colleagues across the group enabling colleagues to take time to 
support charitable causes that are close to their hearts our individual 
businesses selected their own charitable causes in 2010 after the group 
devolved its centrallymanaged fundraising model to better fit with our 
decentralised business model we now partner with 11 uk based charities 
each managing director leads fundraising for his own business 
assisted by a charity committee of employee representatives team 
building and charity fundraising activities are combined powerfully 
strong colleague engagement has led to more than £17m being raised 
in 2010 an uplift of more than double the 2009 total – despite the 
recession
fundraising has been particularly visual in our travis perkins brand 
which adopted the breast cancer campaign and children’s hospices uk 
charities on a twoyear partnership and in our wickes brand which raised 
nearly £655000 for its adopted charity leukaemia and lymphoma 
research the travis perkins business resprayed 12 of its delivery 
vehicles pink sourced and sold pink products in its branches and 
even changed its name to ‘travis pinkins’ for a national day of fund
raising keyline’s partnership with the prostate cancer charity has been 
beneficial to the charity in terms of fundraising and substantially raised 
public awareness of prostate cancer in the maledominated building and 
construction sector other beneficiaries of charity partnerships with travis 
perkins’ businesses include clic sargent childline whizzkidz and the 
warwickshire and northamptonshire air ambulance
more than £225000 was donated through the company’s payroll 
giving facility in 2010 all of the partner charities benefited from a share 
of the donations together with other charitable causes personally chosen 
by employees much of this was raised through a popular and fully 
licensed colleague lottery colleagues donate £1 per month from their 
salary with up to 50 going to the charity of their business more than 
70 of employees donate through the lottery with over £60000 raised 
for the partner charities in 2010
strategy
we are determinedly pursuing our vision of ensuring that anyone in 
the uk who wants to be supplied with materials to construct repair or 
improve the built environment will have a travis perkins business as their 
first choice our strategy to achieve this is relatively simple
●
  through a low risk programme of continuous improvement have the 
best offer to customers in each market and
●
  by applying our business model of disciplined margin management 
tight cost control clear focus on capital returns and a strong alignment 
of accountability and incentives have the highest operating margin in 
each sector
this approach has produced sectorleading performances in revenue 
growth and returns and has enabled us to grow our asset base to 
achieve powerful positions in each sector of our market 
over the last four years we have seen three clear turning points in 
the course of the recession in construction markets – a sharp downturn 
a return to stability in activity at low levels and a gradual but choppy 
recovery which still has a long way to go at each turn we decisively 
adapted our stance to trading investment and cash we took costs out 
rapidly and decisively at the downturn put more investment back in as 
the market stabilised and of course committed to a major acquisition as 
growth returned last year these actions mean we are now positioned with 
a larger footprint in the sector a leading position in plumbing and heating 
to add to our longstanding leading position in heavyside and timber and 
with our branch network intact having seen closures elsewhere
we are now poised to use our management resources to exploit this 
position and achieve further growth in returns to shareholders
as i have noted the course of the recovery is likely to be choppy and 
conditions for the next 12 months remain challenging there is consider
able gloom in the wider economy but we don’t subscribe to the double
dip theory the construction market fell by over 30 in 200809 and 
although activity has picked up a little on a longer term perspective 
activity levels remain low
the group’s organic growth strategy is based on a combination of self
help initiatives and external expansion in particular the group will extend 
its direct sourcing operations in the far east and enhance its supply chain 
whilst at the same time investing in the it resource necessary to support 
those and many other activities  23
chief e xe c u tive’s review of the year
 
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left andy marr branch manager right scott richardson sales assistant
keith ward driver
scott richardson sales assistant
keyline’s ‘best in town’ programme 
delivered improved performance 
f oc us on o rga ni c growth  
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chief e xe c u tive’s review of the year
we will continue to pursue this organic strategy which is delivering 
increasing market share and sales performance whilst we monitor very 
closely both our performance and market conditions to keep ahead of our 
competitors we will retain our policy of continuous improvement of our 
businesses taking many small steps in a large number of areas of our 
business this process of continual improvement is supported by many 
new initiatives that will be implemented during the course of the year
our acquisition of bss was the stand out event at travis perkins last 
year our commercial analysis indicated we would be acquiring a strong 
company with quality people and that the prospects for the business are 
excellent and exciting this has proven to be the case
we are realistic about market prospects but are positive about the 
future because we have the strategy market position execution skills and 
scale to respond quickly to market changes and to deliver outstanding 
service to our customers
our three main targets for 2011 to create value are to
●
  continue the group’s strategy of organic growth we have more 
initiatives in gestation to bring to market
●
  use our strong cash generation to pay down debt maintain investment 
in continuous improvement selectively continue network expansion 
and increase dividends
●
  integrate bss and get the best out of the acquisition we have proved 
we can generate superior returns from businesses in our sector and 
will work hard to apply those skills to the bss businesses
we look forward to another year of good progress
geoff cooper  
chief executive 
22 february 2011 
dale white forklift driver rhianon rickard senior cashier
24  
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chief e xe c u tive’s review of the year
wickes achieved significant 
additional sales
f oc us on o rga ni c growth
wickes achieved significant 
additional sales thanks 
to its next day delivery 
service six days per week 
its standalone kitchen and 
bathroom stores and its 
new paint range
leanne pointon 
customer assistant
25