The Men Who Run Travis Perkins Plc

What you need to know about the top executives of builders’ merchants Travis Perkins plc (LON:TPK).

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Management can make all the difference to a company’s success and thus its share price.

The best companies are those run by talented and experienced leaders with strong vested interests in the success of the business, held in check by a board with sound financial and business acumen. Some of the worst investments to hold are those run by executives collecting fat rewards as the underlying business goes to pot.

In this series, I’m assessing the boardrooms of companies within the FTSE 100 (UKX). I hope to separate the management teams that are worth following from those that are not. Today I am looking at Travis Perkins (LSE: TPK), the largest supplier of building materials in the UK and owner of Wickes DIY chain.

Here are the key directors:

Director Position
Robert Walker (non exec) Chairman
Geoff Cooper Chief executive
John Carter Deputy chief executive
Tony Buffin Finance director

Robert Walker has been chairman since 2010. His executive career included 20 years with Pepsi Co, and time with management consultants McKinsey and Proctor and Gamble, as well as being a former CEO of Severn Trent. He has since held a slew of FTSE 350 directorships, and is also chairman of FTSE 250 pub operator Enterprise Inns.

CEO retiring

Geoff Copper joined the company and became CEO in 2005. A chartered management accountant, he had a career in management consultancy before moving into finance director roles, with Gateway and Alliance Unichem, where he became deputy CEO. Mr Cooper is to retire early next year, staying on for 12 months as a consultant.

He is to be replaced by John Carter, who has served as deputy CEO since 2012. Mr Carter joined the group as a management trainee in 1978 and has worked his way up through various management and commercial roles, becoming chief operating officer in 2005 when Mr Cooper joined.

During the combined tenure of Mr Cooper as CEO and Mr Carter as COO/deputy CEO, which included the depths of the financial crisis, turnover more than doubled as the company grew market share through acquisitions, whilst pre-tax profits rose 50% and market cap doubled. The company joined the FTSE 100 earlier this year.

Overseas expansion?

A chartered accountant, Tony Buffin was appointed finance director in April this year, replacing the previous incumbent who had served for 17 years. He was previously finance director of Australian retailer Coles Group and financial controller of Boots Group. There was some speculation on his appointment that his international and corporate finance experience might indicate plans for overseas expansion.

Travis Perkins’ four non-execs combine retail, construction materials and finance experience. Though they are matched in number by the chairman plus executives, the retirement of the CEO and elevation of his deputy will presumably see them assume the majority.

I analyse management teams from five different angles to help work out a verdict. Here’s my assessment:

   
1. Reputation. Management CVs and track record.
Strong.
 

 Score 4/5

2. Performance. Success at the company.
Good.
 

Score 3/5

3. Board Composition. Skills, experience, balance
Logical.
 

 Score 3/5

4. Remuneration. Fairness of pay, link to performance.
Uncontroversial.
 

 Score 3/5

5. Directors’ Holdings, compared to their pay.
Chairman and older CEOs have £1m+ worth.
 

 Score 4/5

Overall, Travis Perkins scores 17 out of 25, an above-average result. A new top team is relatively untested, but the company is carefully blending continuity with external recruitment.

I’ve collated all my FTSE 100 boardroom verdicts on this summary page. I hope it helps with your analysis.

Buffett’s favourite FTSE share

Legendary investor Warren Buffett has always looked for impressive management teams when picking stocks. His recent acquisition, Heinz, has long had a reputation for strong management. Indeed Mr Buffett praised its “excellent management” alongside its high quality products and continuous innovation.

So I think it’s important to tell you about the FTSE 100 company in which the billionaire stock-picker has a substantial stake. A special free report from The Motley Fool — “The One UK Share Warren Buffett Loves” — explains Mr Buffett’s purchase and investing logic in full.

And Mr Buffett, don’t forget, rarely invests outside his native United States, which to my mind makes this British blue chip — and its management — all the more attractive. So why not download the report today? It’s totally free and comes with no further obligation.

> Tony does not own any shares mentioned in this article.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Investing Articles

Abstract 3d arrows with rocket
Investing Articles

I think these are my best growth shares to buy with £1,000

Jon Smith talks through some shares to buy that he likes for next year, with a particular focus on retail…

Read more »

Young Asian man drinking coffee at home and looking at his phone
Investing Articles

2 terrific cheap shares I’d snap up before it’s too late!

Our writer wants to capitalise on cheap shares now before any potential market rally and identifies a couple of stocks…

Read more »

Mindful young woman breathing out with closed eyes, calming down in stressful situation, working on computer in modern kitchen.
Investing Articles

While the US stock market booms, the FTSE 100 lags behind. Or does it?

In November, global stock markets had their best month in over three years. Meanwhile, the UK's Footsie keeps falling further…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

What should I buy for my Stocks and Shares ISA in 2024?

From 6 April 2024, UK adults qualify for a new Stocks and Shares ISA allowance of £20,000. But what assets…

Read more »

Smart young brown businesswoman working from home on a laptop
Investing Articles

Could this FTSE 100 stock be like buying Apple shares in 2009?

Investors who bought Apple shares after a 100% gain in 2009 have done pretty well for themselves. Could FTSE 100…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Small-Cap Shares

2024: a once-in-a-decade chance to build wealth with penny stocks?

A lot of penny stocks and small-cap shares have tanked over the last two years. And Edward Sheldon now sees…

Read more »

Businesswoman analyses profitability of working company with digital virtual screen
Investing Articles

3 reasons the Rolls-Royce share price can keep going higher

It might be the top-performing FTSE 100 stock of 2023, but Stephen Wright thinks the Rolls-Royce share price can go…

Read more »

2024 year number handwritten on a sandy beach at sunrise
Investing Articles

2 dirt cheap value stocks I’m buying

These two FTSE 350 value stocks have performed miserably in 2023. However, Andrew Mackie expects their fortunes to turn in…

Read more »