Final Results

Travis Perkins PLC
11 March 2002

11 March 2002



                    PRE-TAX PROFIT UP 26.6 PER CENT TO £110.5 MILLION

    OPERATING PROFIT BEFORE REORGANISATION COSTS AND AMORTISATION OF GOODWILL UP
                             14.0 PER CENT AT £129.1 MILLION



                                                                          2001           2000    Increase
                                                                            £m             £m           %

                                                                                     Restated
Turnover                                                               1,279.3        1,181.2         8.3

Operating profit before reorganisation costs and
     amortisation of goodwill                                            129.1          113.2        14.0
Profit before taxation                                                   110.5           87.3        26.6

Profit after taxation                                                     76.7           60.0        27.8

Basic earnings per ordinary share                                        68.8p          54.2p        26.9

Adjusted earnings per ordinary share before
     reorganisation costs, amortisation of goodwill and
     profit on sale of properties                                        77.0p          66.2p        16.3
Final dividend per share                                                 11.8p          10.5p        12.4
Total dividend per share                                                 17.2p          15.3p        12.4


Frank McKay, chief executive, said: 'The recent increase in property
transactions and new housing starts may be tempered by more cautious forecasts
for economic growth and uncertainty as to the future course of interest rates.
We continue to invest in our business, and we also believe that we will draw
incremental benefits in 2002 from the initiatives to generate organic and
acquisition growth.  As a result we anticipate the company should make further
progress in the coming year.'


Enquiries         Frank McKay                           Paul Hampden Smith
                  Chief Executive                       Finance Director
                  Tel:   [phone] (office today)   Tel:   [phone] (mobile)
                         07712 878 700 (mobile)


Issued on behalf of  Travis Perkins plc by Tavistock Communications Limited
(contact: Keith Payne, Tel [phone]).


Chairman's Statement

Results

I am pleased to report pre-tax profits for the year ended 31 December 2001 of
£110.5 million, an increase of 26.6 per cent over the £87.3 million earned in
2000.  Turnover at £1,279.3 million was 8.3 per cent ahead of the previous year.
The pre tax profit is after charging £10.5 million for the amortisation of
goodwill.  There were no exceptional reorganisation costs in 2001 (£5.0 million
in 2000).  Before these charges and interest costs, operating profit was £129.1
million, compared with £113.2 million in 2000, an increase of 14.0 per cent.

Basic earnings per share were 68.8 pence, compared with 54.2 pence in 2000, an
increase of 26.9 per cent.  Adjusted earnings per share (prior to reorganisation
costs and amortisation of goodwill and excluding profit from the sale or surplus
properties) were 77.0 pence, compared with 66.2 pence in 2000, an increase of
16.3 per cent.

Dividend

The board is recommending a final dividend of 11.8 pence per share, an increase
of 12.4 per cent on the final dividend of 10.5 pence for 2000.  Together with
the interim dividend of 5.4 pence, this would give a total annual dividend of
17.2 pence per share, an increase of 12.4 per cent over the previous year.

Board of Directors

My predecessor as Chairman, Tony Travis, retired at the end of October. Tony's
insight and vision throughout his 36 years with the company saw the group grow
over 100 fold from turnover of £9.6 million to £1,279.3 million, while the total
number of branches increased from 21 in 1966 to 502 in 2001.

I am sure that shareholders will want to join his colleagues within Travis
Perkins in thanking Tony for his significant contribution to the current
strength of the group and wish him well for the future.

I am delighted that John Carter joined the board as an executive director on 1
July 2001. John has spent the last 23 years of his career with the group,
latterly as the Managing Director Operations of Travis Perkins Trading Company.

Corporate Governance

The group board has continued its regular review of all the major areas of risk
to the company.

Reports on these risks to the group board include recommendations where
necessary for any improvements in the controls or the management of the risks.
A more comprehensive explanation of these controls can be found under the
corporate governance section of the annual report and accounts.

Outlook

The recent increase in property transactions and new housing starts may be
tempered by more cautious forecasts for economic growth and uncertainty as to
the future course of interest rates.  We continue to invest in our business, and
we also believe that we will draw incremental benefits in 2002 from the
initiatives to generate organic and acquisition growth.  As a result we
anticipate the company should make further progress in the coming year.

T.E.P. STEVENSON





Chief Executive's Review

Results

Group operating profit before amortisation of goodwill and reorganisation costs
rose 14 per cent during the year to £129.1m, from £113.2m in 2000, on turnover
of £1,279.3m against £1,181.2m.  The market strengthened during the second half
and the group's continued progress was marked by further investment in
acquisitions of independent merchants, in greenfield sites and in the
enhancement of our branch network. Group like-for-like sales were up 5.1 per
cent, while the group retained its position as the UK's leading supplier of
heavy building materials.

Operating margins (before amortisation of goodwill and reorganisation costs)
moved back above 10 per cent, as good progress was made on our programme of
improvement projects throughout the business.  The 101 branches acquired in June
1999 on the acquisition of Keyline continued to perform well with improved
returns obtained both from the Keyline branches re-branded Travis Perkins and
from those retaining the Keyline brand.

The 38 original Sharpe and Fisher branches, all now operating as Travis Perkins,
made significant progress in 2001 with sales and margins ahead of those achieved
in 2000.

The 9 branches of Broombys in Cumbria, acquired in March 2000, also made
progress achieving cost reductions and buying gains in line with our
expectations.

Gross profit on a like-for-like basis, including rebates, improved as a
percentage of sales for the sixth year in succession.  Pressure on overheads
continued, particularly in relation to employment costs.

Developments

A further 16 mixed merchant branches were added to the network as we continued
to target our acquisition programme at gaps in our geographic coverage.

We also opened four greenfield branches stocking a comprehensive product range.

Nine greenfield plumbing and heating branches were opened during the year under
the new TP Plumbing & Heating (P&H) brand.  A total of 34 specialist P&H
branches were trading under the new brand by the end of 2001.

A further 15 tool hire outlets were opened in existing branches bringing the
total number of branches offering tool hire to145.

By the end of 2001 the Travis Perkins' group was trading from a total of 502
branches, an increase of 29 on a year earlier.

The total amount spent on these initiatives and other capital expenditure was
£44.1m.

Branch Improvements

We have continued to invest in our branches in order to enhance further the
range of products and services available to our customers.  Among a number of
branches benefiting from major redevelopment work were those in Hyde, Epping,
Durham and Battersea.

The systems integration of DW Archer, our specialist timber operation, has been
completed.  All of this company's 11 outlets have been operating on the same
systems as the rest of the group since July 2001. Significant investment in
these branches is currently under way.  The first phase embraces developments to
the trade counter areas in order to extend the product ranges on offer to
customers.

Own brand sales grew further during the year as new products, notably decorative
aggregates and geotextiles for landscaping, shower mixers and pumps, as well as
additional hand and power tools, were added to the range.

Sales growth has resulted from our decision to introduce landscaping centres and
we intend to roll out this new concept more widely during 2002.

Investment made during the year in our timber milling operations has increased
efficiency and the availability of product to our branches.  As a result the
profitability of our timber operations has improved.

Information Technology

The project to upgrade our network was completed by the end of 2001.  This has
provided the platform for a wide variety of applications that will benefit
customer service.

System improvements are also serving to improve stock and debtor management.
Automatic stock replenishment programmes with selected suppliers have made good
progress and are now being extended.  In addition, with increased product
availability, these projects have also helped sales progress.

As our e-commerce skills continue to evolve, we have been able to strengthen our
direct sales administration capability through an extension to our Internet
site. This allows customers to link directly to our sales offices and manage
their order placement and call-off programmes on-line.  Our overall website
traffic has grown significantly, though individual transaction values via the
Internet remain small.

In late 2000 we launched a range of low cost systems to enable more of our
suppliers to interact with us electronically. In 2001 the number of suppliers
sending invoices in electronic form more than doubled.  As a result by the end
of the year more than 70% of all purchase invoices were handled in this manner.

Internal intranet systems have been developed to such an extent that interactive
management information is increasingly replacing paper-based systems.

Customer Service

The positive benefits of customer service training at branch management level
have been reflected in the company's Key Performance Indicator tracking
programme.  Market research conducted during the year has shown that we perform
well in this area and we are constantly seeking new ways of further improving
our customer service capabilities.

Health and Safety

Greater emphasis on Health and Safety is being achieved through detailed
tracking of accident frequency, severity rates and positive attendance data.
Every incident is investigated and where necessary corrective action taken.
Good progress is being made in reducing both frequency and severity rates. These
initiatives will help to ensure a safer working environment for employees,
customers and suppliers.

Environment

We are fully aware of our responsibility to conduct our business with due regard
to its effect on the environment.  A formal Environmental Management System was
launched in June 2001 and accreditation to the ISO 14001 standard was achieved
in November.  An environmental improvement programme is being implemented within
our own operations and we are working with suppliers to encourage improvement
throughout the supply chain.

Future Expansion

We have a proven strategy of growing our business in the UK.  It continues to
serve us well as we target gaps in our regional coverage.  We are regularly
identifying new opportunities for growth through the acquisition of independent
merchants and the development of greenfield sites.  At the same time we are
intensifying our product specialisation focus in the areas of plumbing and
heating, tool hire, dry lining and insulation and hard landscaping products.
All of this is bearing fruit.  We also continue to develop sales of our own
brand products.

Our confidence and ability to continue to grow the business in its present form
remains firm.  We have set ourselves broad objectives over time for both market
share and earnings growth and, given a stable market environment, are optimistic
that we shall be able to continue to deliver profitable growth to our
shareholders.

Staff

On behalf of the board, I would like to thank all our employees for their
valuable contribution to the success of the company during the year.

F. J. McKAY



Finance Director's Report

Results

Pre-tax profits were £110.5 million (2000 £87.3 million). Goodwill amortisation
was £10.5 million (2000 £10.1million) and exceptional reorganisation costs were
£nil (2000 £5.0 million).

Pre-tax profits before goodwill amortisation, property profits and exceptional
reorganisation costs were £119.6 million (2000 £102.1 million), an increase of
17.1 per cent. Earnings before interest, tax, depreciation and amortisation
(EBITDA) and before exceptional reorganisation costs, property profits and other
finance income for 2001 were £148.1 million (2000 £129.8 million), an increase
of 14.1 per cent.

Net interest payable for the year was £10.7 million compared with £12.7 million
in 2000.

The tax charge is £33.8 million (30.6 per cent) compared with £27.3 million
(31.3 per cent) last year.  The rate is higher than the UK corporation tax rate
of 30 per cent because goodwill amortisation does not qualify for tax relief and
taxation on profits on sale of properties is deferred.  The effective tax rate,
after adjusting for property profits, other finance income and goodwill
amortisation, was 28.5 per cent  (2000 28.6 per cent).

Pension Fund Accounting - Financial Reporting Standard No 17

In recognition of the significant effect FRS 17 will have on company accounts,
the Accounting Standards Board has allowed companies to adopt a transitional
approach to implementing the new Standard's full requirements.  However, in the
current climate of uncertainty that surrounds many pension funds the board has
decided to fully implement the Standard in the 2001 group accounts in order to
provide shareholders with a complete overview of the company's pension
obligations.

At 31 December 2001, the Travis Perkins defined benefit scheme had a deficit of
£32.4 million.  This has been included in the group balance sheet, net of a
deferred tax asset of  £9.7 million and has reduced shareholders' funds by £22.7
million, or approximately 5.4 per cent.

Pension related costs charged to the profit and loss account in 2001 were £4.9
million under FRS 17, some £1.4 million lower than they would have been under
the previous accounting standard.  The effect of prior year adjusting the 2000
reported profits, as required by the Standard, was to increase profits for 2000
by £1.6 million.

During the year the group paid £6.7 million for ongoing contributions to its
pension schemes.  In addition it made an exceptional one-off payment of £6.1
million to the Sharpe & Fisher scheme prior to its merger with the Travis
Perkins scheme.  In 2002, the group expects to pay approximately £2 million more
for ongoing contributions than in 2001.  The profit and loss account charge will
increase by a similar amount.

Cash Flow

Free cash flow, as described in note 8, for the year was £105.6 million (2000
£46.7 million).  The free cash generated by the group was used to fund capital
expenditure on the existing business and new acquisitions which in total cost
£40.3 million (2000 £56.5 million).  Operating cash flow was £62.2 million (59.4
per cent) higher than for 2000 at £166.9 million as a result of improved working
capital management during 2001. A 16 per cent improvement in stock turn was
achieved with the help of enhanced management information systems.



Net Debt and Borrowing Facilities

Net debt at the year-end was £126.1 million (2000 £191.4 million), which
represents a gearing level of 32.0 per cent (2000 52.4 per cent).   Borrowings
include £12.8 million of loan notes issued to Sharpe & Fisher and to Broombys'
shareholders as part of the acquisition consideration. They are redeemable at
six monthly intervals ending in June 2015.

The group has £200.0 million of committed facilities, comprising a £125.0
million term loan repayable over the period ending May 2004, a £25.0 million
loan repayable in November 2002 and a £50.0 million revolving syndicated credit
facility available until May 2004. It has overdraft facilities of £25.0 million.
  At the year-end the group had unutilised committed facilities of £50 million
and overdraft facilities of £24.9 million.

Interest cover, as described in note 9, is approximately 12 times (2000, 9
times), well within our borrowing covenants.

At 31 December 2001, all of the group's borrowings were covered by two 3-year
interest rate swaps expiring in May 2002 and November 2003 with fixed interest
rates at an average of 5.7 per cent.  The market value of the swaps at 31
December 2001 was £(1.8) million. Based on our current borrowing projections,
the interest rate on outstanding debt is fixed until the end of 2003.

Shareholders' Funds

Total equity shareholders' funds at 31 December 2001 were £394.1 million, an
increase of £29.7 million compared with 31 December 2000.  The principal reason
for the increase was retained profit for the year of £57.4 million less the
difference between actual pension fund returns compared with expected returns,
of £32.9 million.

The return on equity shareholders' funds before taxation, as described in note
10, has increased to 27.5 per cent in 2001 from 24.3 per cent in 2000.  This
level of return, after tax, is substantially higher than the group's weighted
average cost of capital.

At the year-end the share price was 849 pence (2000 694 pence) and the market
capitalisation £952 million (2000 £771 million), representing 2.4 times
shareholders' funds.

Goodwill

The net book value of goodwill in the balance sheet is £188.3 million, which is
being amortised over 20 years.  Additions to goodwill in the year totalled £6.0
million.

In accordance with FRS 10, impairment reviews were carried out at December 2001,
the end of the first full year following the 2000 acquisitions.  No impairments
were identified as a result of these reviews.

Treasury Risk Management

Treasury activities are managed centrally under a framework of policies and
procedures approved and monitored by the Board.  The objectives are to protect
the assets of the Group and to identify and then manage financial risk.  In
applying its policies, the Group will utilise derivative instruments, but only
for risk management purposes.

The principal risk facing the Group is an exposure to interest rate
fluctuations.  The Group is not exposed to significant foreign exchange risk as
most purchases are invoiced in sterling.  These risks are described further
below:

* Interest Rate Risk

The Group finances its operations through a mixture of retained profits, bank
borrowings and loan notes. The Group borrows at floating rates and uses interest
rate swaps into fixed rates to generate the preferred interest rate profile and
to manage the Group's exposure to interest rate fluctuations.

* Currency Risk

The Group usually buys currency at spot rates. Whilst this was the situation
during 2001, forward contracts may be purchased where appropriate.

* Liquidity Risk

The Group's policy has been to ensure that it has committed borrowing facilities
in place in excess of its peak forecast gross borrowings for at least the next
twelve months.

P N HAMPDEN SMITH




Consolidated Profit and Loss Account
£m                                                                    2001              2000
                                                                                    Restated


Turnover                                                           1,279.3           1,181.2
Operating profit before reorganisation
  costs and amortisation of goodwill                                 129.1             113.2

Reorganisation costs                                                     -             (5.0)
Amortisation of goodwill                                            (10.5)            (10.1)

Operating profit after reorganisation
  costs and amortisation of goodwill                                 118.6              98.1


Profit on sale of properties                                           1.4               0.3


Profit on ordinary activities before interest
  and taxation                                                       120.0              98.4


Net interest payable                                                (10.7)            (12.7)
Other finance income                                                   1.2               1.6


Profit on ordinary activities before taxation                        110.5              87.3


Tax on profit on ordinary activities                                (33.8)            (27.3)


Profit on ordinary activities after taxation                          76.7              60.0


Dividends paid and proposed                                         (19.3)            (17.0)


Retained profit transferred to reserves                               57.4              43.0


Earnings per ordinary share


Basic                                                                68.8p             54.2p

Diluted                                                              68.2p             53.9p


Adjusted (before reorganisation costs, amortisation
   of goodwill and profit on sale of properties)                     77.0p             66.2p


Dividend per ordinary share                                          17.2p             15.3p



All results relate to continuing activities.  The results disclosed in the Group
profit and loss account are not materially different from the results on an
unmodified historic cost basis.




Consolidated Balance Sheet
£m                                                                                  2001         2000
Fixed assets                                                                                 Restated
                 Tangible assets                                                   226.4        215.8
                 Intangible assets - goodwill                                      188.3        192.8
                 Investments                                                         4.9          5.2
                                                                                   419.6        413.8
Current assets
                 Stocks                                                            132.7        140.6
                 Debtors                                                           215.7        211.9
                 Properties held for resale                                          1.8          1.5
                 Cash at bank and in hand                                           37.0          9.8
                                                                                   387.2        363.8
Creditors: amounts falling due within one year                                   (287.4)      (263.3)


Net current assets                                                                  99.8        100.5


Total assets less current liabilities                                              519.4        514.3
Creditors: amounts falling due after
                   more than one year                                            (100.0)      (150.0)
Provisions for liabilities
   and charges                                                                     (2.6)        (1.1)


Net assets excluding pension deficit/asset                                         416.8        363.2


Pension (deficit)/asset                                                           (22.7)          2.3


Net assets including pension deficit/asset                                         394.1        365.5


Capital and reserves
                 Called up share capital                                            11.2         11.1
                 Share premium account                                              61.0         54.7
                 Revaluation reserves                                               31.5         31.4
                 Profit and loss account                                           290.4        267.2
Total equity shareholders' funds                                                   394.1        364.4
Minority interests - non equity                                                        -          1.1
                                                                                   394.1        365.5




Consolidated Cash Flow Statement
£m                                                                                     2001          2000
Net cash inflow from operating activities                                             166.9         104.7
Returns on investments and servicing of finance
Interest received                                                                       0.1           0.1
Interest paid                                                                        (13.5)        (10.3)
Dividends paid to minority interest                                                   (0.3)             -
Net cash outflow for returns on
  investments and servicing of finance                                               (13.7)        (10.2)
Taxation
UK corporation tax paid                                                              (34.7)        (26.3)
Capital expenditure and financial investment
Purchase of tangible fixed assets                                                    (29.1)        (34.3)
Receipts from sales of tangible fixed assets                                            4.4           1.6
Receipts from sale of own shares held                                                   0.5             -
Net cash outflow for capital expenditure
   and financial investment                                                          (24.2)        (32.7)
Acquisitions
Purchase of business undertakings                                                    (15.1)        (18.0)
Net cash/(overdrafts) acquired with business undertakings                               0.1         (5.8)
Purchase of minority interest                                                         (1.1)             -
Net cash outflow for acquisitions                                                    (16.1)        (23.8)
Equity dividends paid                                                                (17.8)        (15.8)
Cash inflow / (outflow) before use of
   liquid resources and financing                                                      60.4         (4.1)
Management of liquid resources
Cash inflow from short term deposits                                                      -          15.9
Financing
Issue of ordinary share capital                                                         4.9           1.1
Repayment of bank loans                                                              (25.0)        (10.0)
Repayment of unsecured loan notes                                                     (3.3)         (2.3)
Capital element of finance lease rentals                                              (0.1)         (0.2)
Net cash outflow from financing                                                      (23.5)        (11.4)
Increase in cash in the year                                                           36.9           0.4




Reconciliation of Movements in Equity Shareholders' Funds


£m
                                                                     2001        2000
                                                                             Restated

Equity shareholders' funds at 1 January as previously stated        356.5       313.4
Prior period adjustment as a result of FRS 17                         7.9        23.3

Equity shareholders' funds at 1 January as restated                 364.4       336.7

Profit attributable to shareholders of the Company                   76.7        60.0

Dividends                                                           (19.3)      (17.0)

Retained profit transferred to reserves                              57.4        43.0

New share capital subscribed                                          4.9         2.4
Revaluation of property transferred to current assets                (0.3)       (0.7)
Unrealise surplus on revaluation of investment properties             0.6           -
Actuarial gains and losses                                          (32.9)      (17.0)

Net increase to shareholders' funds                                  29.7        27.7

Equity shareholders' funds at 31 December                           394.1       364.4



Statement of Total Recognised Gains and Losses                       2001        2000
                                                                             Restated
Profit attributable to shareholders of the Company                   76.7        60.0
Actuarial gains/losses recognised in the pension schemes            (43.6)      (25.1)
Deferred tax                                                         10.7         8.1
Revaluation of property transferred to current assets                (0.3)       (0.7)
Unrealised surplus on revaluation of investment properties            0.6           -

Total recognised gains and losses relating to the year               44.1        42.3
Prior period adjustment as a result of FRS 17                         7.9           -

Total gains recognised since last Annual Report                      52.0        42.3


Analysis of Actuarial Gains and Losses Included in the Statement
of Total  Recognised Gains and Losses

£m                                                                   2001        2000

Difference between actual and expected return on scheme assets     (37.7)       (21.6)

Experience gains and losses arising on scheme liabilities           (1.5)         1.8

Effects of changes in assumption underlying the
present value of scheme liabilities                                 (4.4)        (5.3)

Total actuarial gains and losses recognised in the
Statement of Total Recognised Gains and Losses                     (43.6)       (25.1)


Notes:



1.      Except for the adoption of FRS 17 - 'Retirement Benefits', the
accounting policies used are consistent with those stated in the financial
statements of the group for the year ended 31 December 2000.  The adoption of
FRS 17 for the first time has resulted in a prior period adjustment.



2.      These statements are not statutory accounts within the meaning of s240
of the Companies Act 1985.



3.      The results, subject to point 1 above, for the year ended 31 December
2000 are taken from the Group's statutory accounts which carry an unqualified
auditors' report and have been filed with the Registrar of Companies.



4.      Statutory accounts, which are unqualified, for the year ended 31
December 2001 will be delivered to the Registrar of Companies in due course.



5.      The statutory accounts for both the year ended 31 December 2001 and year
ended 31 December 2000 did not contain a statement under s237 (2) or (3) of the
Companies Act 1985.



6.      An interim dividend of 5.4 pence was paid to shareholders on 1 November
2001.  The proposed final dividend of 11.8 pence will be paid on 17 May 2002 to
shareholders on the register at 19 April 2002.



7.      It is intended to post the Report and Accounts on 26 March 2002 and to
hold the Annual General Meeting on 1 May 2002.



8.      Free cash flow is derived by taking the movement in net debt during the
year and adding back net capital expenditure and cash flow on acquisitions both
as shown in the cash flow statement.



9.      Interest cover is calculated by dividing operating profit before
reorganisation costs and amortisation of goodwill by the net interest payable.



10.  Return on equity is derived by taking profit before tax and goodwill
amortisation and dividing it by average net assets (after adding back total
goodwill amortised to profits and goodwill previously written off to reserves)
for the period.


Reconciliation of Operating Profit to
Net Cash Inflow from Operating Activities
£m                                                                2001       2000


Operating profit after reorganisation costs and
amortisation
  of goodwill                                                    118.6       98.1
Depreciation charges                                              19.0       16.1
Other amounts written off tangible fixed assets                      -        0.5
Amortisation of goodwill                                          10.5       10.1
Profit on sale of fixed assets                                   (0.1)      (0.7)
Decrease / (increase) in stocks                                   10.8      (9.0)
Increase in debtors                                              (0.6)      (0.5)
Increase / (decrease) in creditors                                 8.7      (9.9)


Net cash inflow from operating activities                        166.9      104.7





Reconciliation of Net Cash Flow to Movement in Net Debt


£m                                                                                    2001         2000

Increase in cash in year                                                              36.9          0.4
Cash outflow to repay debt                                                            28.4         12.5
Cash inflow from decrease in liquid resources                                            -       (15.9)


Change in net debt resulting from cash flows                                          65.3        (3.0)
Non - cash changes                                                                       -        (6.8)

Movement in net debt in the year                                                      65.3        (9.8)

Net debt at 1 January                                                              (191.4)      (181.6)

Net debt at 31 December                                                            (126.1)      (191.4)







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