The company declared 2022 a year of “significant strategic and operational progress building a strong platform for future growth”.

Its core merchanting division saw adjusted operating profits only decline by only 1.9% in 2022 to £314m (2021: £320m), with revenue up 10% to £4.22bn (2021: £3.82bn).

Overall group adjusted operating profits saw a steeper 16.4% decline in profits to £295m (2021: £353m).

Despite anticipating a challenging year in 2023, TP management continues to anticipate “delivering a performance in line with market expectations”.

It has enacted cost-saving actions to create a more agile business and so it can “outperform its markets and deliver attractive returns to shareholders over the medium term”.

These actions resulted in the closure of 19 branches in the General Merchant division and Benchmarx and a headcount reduction of approximately 400 across those branches and central support functions.

The group said 2023 market decline will vary across end markets with private domestic new-build and RMI more challenged while the commercial, industrial and public sectors are expected to remain more resilient. 

TP said product cost inflation is expected to moderate into 2023 although management does not currently expect to see any notable deflation in manufactured products. Management therefore expects to see mid to high single digit percentage product cost inflation overall driven by the rollover of prior year increases and further new increases already announced so far this year.