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.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

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

Investing Articles

£10,000 invested in Greggs shares 10 years ago is now worth…

Greggs' shares have reversed sharply due to recent trading pressures. Is this a great dip-buying opportunity for long-term investors to…

Read more »

Investing Articles

Up 40% in a year and still yielding 7.5% with a P/E of 8.5! Could this be the best share for me to buy today?

Harvey Jones is impressed by results at British American Tobacco. He thinks it might be the best share to consider…

Read more »

Investing Articles

7% yields and P/Es below 12! Yet I wouldn’t touch these 2 income shares with a bargepole!

Harvey Jones has been tempted by two FTSE 100 income shares that look good value and offer dizzyingly high dividend…

Read more »

British bank notes and coins
Investing Articles

£10 a day of passive income from a £20k Stocks and Shares ISA? Here’s how!

Christopher Ruane walks through some steps an investor could use to target a tenner a day of income from a…

Read more »

Investing Articles

Here’s how scooping up cheap FTSE 100 shares now could help an investor retire early

This writer sees stock market tumbles as an opportunity for the savvy investor to try and bring forward their retirement.…

Read more »

Investing Articles

Are Rolls-Royce shares still a bargain in 2025?

Rolls-Royce shares have been on an incredible run in recent years. Christopher Ruane considers whether he ought to add some…

Read more »

Investing Articles

£10K of savings? Here’s how an investor could use that to target a £2,708 second income

The stock market can be a powerful and simple way to build a second income. Our writer illustrates how someone…

Read more »

Investing Articles

£20,000 in savings? Here’s how it could potentially unlock £888 of passive income each month

Christopher Ruane explains why owning dividend shares can be an appealing passive income idea -- and how it can work…

Read more »