Travis Perkins most shorted firm as Brits rein in on new bathrooms

Hedge: Travis has been hit by jitters in the DIY market triggering more shorting of its shares

Chris Ratcliffe/Bloomberg

Michael Bow10 September 2018

Builders’ merchant Travis Perkins has become the UK's most heavily shorted company after hedge funds ramped up their bets following weaker profits, it emerged today.

The Wickes owner, which employs 30,000 staff, has seen the percentage of shares out on loan hit 15.5%, according to IHS Markit data as investors bet on a slump in domestic UK stocks. That represents a 13% increase over the past month.

The FTSE 250 company, which declined to comment, warned in late July that full-year operating profits would fall short of expectations because of a slowdown in spending on new bathrooms and kitchens.

Shares are down 28% so far this year and analysts have cut their target price on the stock. Short-selling is used by investors to profit from shares falling.

Marshall Wace, Citadel and WorldQuant are among those shorting the stock.

Chief executive John Carter is cutting costs at Wickes to try to steady the ship.