travis perkins lodge way house harlestone road northampton nn5 7ug
tra vis perkins plc
annual repor t  accounts
2002
travis perkins plc annual report and accounts 2002
financial highlights 1
chairman’s statement 3
chief executive’s review 6
finance director’s report 11
corporate social responsibility statement 16
environmental report 18
health  safety report 22
directors and professional advisers 24
corporate governance 28
remuneration report 31
directors’ report 38
statement of directors’ responsibilities 40
auditors’ report 40
consolidated profit and loss account 42
balance sheets 43
statement of total 
recognised gains and losses 44
analysis of actuarial gains and losses 44
reconciliation of movements 
in equity shareholders’ funds 44
consolidated cash flow statement 45
accounting policies 46
notes to the accounts 49
five year record of group results 66
notice of annual general meeting 68
notes to notice of annual general meeting 70
other shareholder information 71
contents
registered office lodge way house harlestone road northampton nn5 7ug
tra vis perkins plc travis perkins lodge way house harlestone road northampton nn5 7ug
tra vis perkins plc
annual repor t  accounts
2002
travis perkins plc annual report and accounts 2002
financial highlights 1
chairman’s statement 3
chief executive’s review 6
finance director’s report 11
corporate social responsibility statement 16
environmental report 18
health  safety report 22
directors and professional advisers 24
corporate governance 28
remuneration report 31
directors’ report 38
statement of directors’ responsibilities 40
auditors’ report 40
consolidated profit and loss account 42
balance sheets 43
statement of total 
recognised gains and losses 44
analysis of actuarial gains and losses 44
reconciliation of movements 
in equity shareholders’ funds 44
consolidated cash flow statement 45
accounting policies 46
notes to the accounts 49
five year record of group results 66
notice of annual general meeting 68
notes to notice of annual general meeting 70
other shareholder information 71
contents
registered office lodge way house harlestone road northampton nn5 7ug
tra vis perkins plc financial highlights 1
chairman’s statement 3
chief executive’s review 6
finance director’s report 11
corporate social responsibility statement 16
environmental report 18
health  safety report 22
directors and professional advisers 24
corporate governance 28
remuneration report 31
directors’ report 38
statement of directors’ responsibilities 40
auditors’ report 40
consolidated profit and loss account 42
balance sheets 43
statement of total 
recognised gains and losses 44
analysis of actuarial gains and losses 44
reconciliation of movements 
in equity shareholders’ funds 44
consolidated cash flow statement 45
accounting policies 46
notes to the accounts 49
five year record of group results 66
notice of annual general meeting 68
notes to notice of annual general meeting 70
other shareholder information 71
contents
registered office lodge way house harlestone road northampton nn5 7ug
tra v is perkins plc
travis perkins
group branches
at 31 december
2002
travis perkins 

Summary:
 tra v is perkins plc
6
results
the company experienced a further year of strong growth in 2002 operating profit before
amortisation of goodwill rose 225 per cent to £1582 million from £1291 million in 2001
turnover increased by 108 per cent to £14175 million from £12793 million sales growth was
driven by the acquisition of city plumbing supplies “cps” and of commercial ceiling factors
“ccf” and by continued investment in the acquisition of independent merchants new greenfield sites and
the existing branch network
a significant improvement in the overall operating margin before goodwill amortisation for the year to 112
per cent from 101 per cent in 2001 reflected continuing progress on a variety of ongoing improvement
projects throughout the group excluding the newly acquired cps and ccf whose contributions were for only
part of the year operating margins moved further ahead 
the 101 branches acquired in june 1999 with the acquisition of keyline continued to perform well higher
returns were obtained from both those rebranded travis perkins and those retaining the keyline brand
resulting in the 8 per cent operating margin target for the keyline business being achieved within the time set
the 38 original sharpe  fisher branches and the 9 broombys branches in cumbria have continued to improve
and are performing ahead of the financial targets established when the businesses were first acquired
gross profit including rebates improved further on a likeforlike basis as a percentage of sales pressure on
overheads continued particularly in relation to employment costs
developments
the major developments of the year were on the acquisition front cps acquired on 1 july for £390 million
enterprise value brought a further 48 branches into the group and strengthened significantly our presence in
the plumbing and heating sector cps is performing in line with expectations it has added four more branches
since being acquired and now operates from 52 outlets
ccf acquired in october for £459 million enhances further our ability to service customers in the growing
chief executive’s review
for the year ended 31 december 2002 tra v is perkins plc
7
drylining and insulation sector added to the five atkins’ distribution centres already owned and the new atkins’
west london greenfield site opened during the year ccf increases travis perkins total number of specialist
centres to 26 in addition it enables us to supply ceilings and partitions a move consistent with our strategy of
investing in complementary distribution areas within carefully chosen markets integration is proceeding well
with management responsibility for the atkins’ branches now transferred to ccf in order to maximise
opportunities for improved sales logistics and customer service ccf is also trading in line with expectations
the acquisition of mixed merchant branches continued alongside the larger acquisitions and as a consequence
a further 29 branches were added to the network of which 2 were branded keyline the total amount spent
on acquisitions during the year was £1135 million
in addition four fullproduct greenfield branches were opened at thornbury dover canvey and hungerford
and two tp plumbing and heating branches at epsom and waltham cross a net three tool hire outlets were
opened within our existing branches bringing the total number of branches offering this facility to 148
at the end of 2002 we were trading from a total of 610 branches an increase of 108 on the number at the
end of the previous year
branch improvements
a programme of continuous investment in our branches is adding to the
quality and level of facilities offered to our customers major redevelopments
were carried out during the year at mitcham crowthorne malton east
kilbride maidenhead bromsgrove and preston
refurbishment of keyline branches continued with the introduction of
broader lightside timber and forest product ranges
the decision was taken to integrate the dw archer branches into the travis perkins’ network and rebrand them
travis perkins these branches which are now managed by the travis perkins’ regional management team will
enable us to offer an extended product range in advantageous geographic locations
landscaping centres have continued to perform well as have sales of own brand products which have also
the recently redeveloped site at mitcham benefited from further additions to the range
investment in our timber milling operations including most recently in the south east has improved efficiency
product availability and quality of supply to our branches
information technology 
improvements to our information systems have produced particular benefits in the areas of improved stock turn
sales and purchase invoice processing at the same time our strong first half performance on bad debt ratios
was maintained throughout the second half of the year
by the end of 2002 over 80 per cent of all purchase invoices and almost 40 per cent of purchase orders were
handled electronically
internal intranet systems were upgraded significantly during the year with interactive management information
increasingly replacing paperbased systems
the central systems hardware was replaced creating valuable extra capacity enabling us to manage future
growth additional benefits of this investment have been the speeding up of processing time and serving
customers more quickly
customer service
a major new initiative in the area of continuous improvement in customer service will be introduced to all
branches during the first half of 2003 the programme includes regular monitoring of a series of seven key
performance indicators derived from data captured by our information systems the data is analysed and
presented monthly ranking branches according to their overall performance there is also a regular and rigorous
customer feedback forum for each branch adherence to the programme will ensure that we maintain the
highest standards of customer service across our branch network
health and safety
our continued focus on health and safety improvements demonstrated encouraging progress in both frequency
and severity rates during 2002 all incidents are investigated corrective action taken and lessons learned are
shared throughout the company
tra v is perkins plc
8 f j mckay  chief executive
improvements in risk assessment processes health and safety training and data analysis have also 
been introduced
environment
our environmental management system accreditation to iso 14001 was maintained during the year the
impact of our business on the environment has been further reduced in particular in the areas of vehicle
emissions volatile organic compound emissions and carbon dioxide emissions improvements in the latter have
been achieved by moving a substantial proportion of our total electricity supply to carbon neutral sources –
effective from october 2002 further progress has also been made in reducing waste concurrently we are
demanding improved performance from suppliers particularly in timber and forest products where we
recognise the importance of increasing the percentage of our products supplied from certified sources
future expansion
the acquisitions during the last year of cps and ccf provide us with excellent platforms for future growth in
plumbing and heating dry lining and insulation and ceilings and partitions growth in these targeted product
lines is consistent with our strategic objectives of growing the business of travis perkins in areas complementary
to our traditional strengths as a leading builders merchant offering a full range of products
we will continue to focus on our strategy of expanding in the uk not only through the acquisition of
independent merchants but also through the opening of additional greenfield sites and 2002 has been a year
of further progress in this respect we remain confident that the strategy we have adopted will continue to
provide solid growth opportunities for the company
staff
once again on behalf of the board i would like to take this opportunity of thanking all employees for helping
to make the past year one of further success and growth for the company
tra v is perkins plc
9 city 
plumbing
vehicle heading out 
of salisbury