Britain's biggest builders' merchant Travis Perkins has reported a 22.5% drop in full year pre-tax profit.

The company also confirmed no final dividend payment will be made to share holders.

The group said: "The speed and scale of the impact of the turmoil emanating from financial markets has been greater than the expectations of most commentators, and 2009 is likely to prove a very tough year for all participants in the construction sector. We see little prospect of a return to market growth this year, and limited prospects for a return to growth in 2010.


"Whilst the long-term prospects for growth in our markets remain positive, the short and medium term outlook is sensitive to recessionary influences. Our revenue sources are well balanced, with our businesses serving a diverse range of customers performing a wide variety of construction work."

Travis Perkins ended 2008 with covenantable net debt of £937m and is targeting a cut of £125m in 2009.

Chief Executive Geoff Cooper said: "We took early action in 2008 to deal with the increasingly tough trading environment and have set our business ready to manage continuing difficult market conditions in 2009."

(CD/JM)