TRADING profits have climbed sharply at heating and plumbing group Wolseley despite a dip in UK revenues, the company reports today.
The firm, which has a large operation in Leamington Spa, said that year-on-year trading profit had risen from £114m to £159m in the quarter ending October 31.
Group revenue has increased slightly from £3,395bn to £3,471bn, a climb of 2%, while gross profit had shown a similar hike from £916m to £938m.
Revenue in the UK however declined by 4% in the quarter, though like-for-like revenue was 5% ahead of last year with the difference being due to the disposal of businesses, including Brandon Hire which was completed in September.
Trading profit in the quarter of £30m, compared to £23m in the same period last year, with the improvement arising from exiting Ireland and reductions in the cost base.
In the USA revenue was 10% ahead of last year and like-for-like revenue growth was 6%, the difference coming from strengthening of the US dollar.
Other key points from the interim management statement show that gross margin was 27%, 0.2% ahead after adjusting for disposals, and operating costs were £23m lower than last year, principally due to disposals.
In September, the company announced it was planning to redomicile to Switzerland and create a new group holding company which would be UK listed, incorporated in Jersey but have tax residence in Switzerland.
Chief executive Ian Meakins said: “Most markets continued to grow in the first quarter and the group’s trading performance was slightly ahead of management expectations.
“Whilst demand has improved in most countries, pricing competition has remained intense.
“We continue to focus on improving customer service, growing market share, driving efficiencies and generating strong cash flow.”
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