The UK’s largest builders’ merchants said other sectors like commercial, industrial and infrastructure were proving “more resilient”.

A stock exchange announcement said: “The Group delivered a resilient performance in the first quarter but has not seen the anticipated easing of market conditions in the second quarter to date.

“Volumes in both the new build housing and private domestic RMI markets continue to be impacted by higher interest rates and weaker consumer confidence driven by persistent, higher than anticipated consumer price inflation.

“By contrast, the Group continues to see more resilient performance across its other end markets – namely commercial, industrial, infrastructure and public sector housing – and Toolstation continues to perform in line with expectations both in the UK and Europe.

“The Group is driving the trading strategy to effectively navigate the near-term market conditions, alongside its ongoing focus on delivering operational efficiencies in the business.

“Carefully targeted investment continues in order to ensure that the Group remains well placed to benefit from a recovery and the long term structural drivers in its end markets, including the long term undersupply of new housing and the retrofitting of domestic and commercial properties.

“Assuming that the present conditions persist for the balance of the year, Management now expects to deliver a full year adjusted operating profit of around £240m.”

Previous guidance was for a profit of £272m.