Wolseley announces £250m share buyback scheme
BUILDING, heating and plumbing supplies group Wolseley has seen both its revenue and profit grow on the back of strong performance in the US.
Today the firm will announce a £250m share buyback programme, which it says reflects its strong financial position and confidence in the business.
Revealing its annual results for the year ended July 31, the Leamington Spa-based company reported revenue in its on-going businesses of £12.8bn, a 2.2% increase on last year’s £12.5bn figure and 6.1% ahead of last year at constant exchange rates.
Profit before tax was up substantially at £698m (2013: £460m).
The firm’s net debt is now £711m (2013: £411m) after ordinary and special dividend payments of £489 million over the last year.
Ian Meakins, chief executive, said: “The group delivered a good overall result. The stand-out performance was the USA where we achieved a record 7.7% trading margin and where our major businesses continued to strongly out-perform their markets.
“Like-for-like revenue was flat in the UK as we focused on protecting gross margins. We faced headwinds in Continental Europe and have continued to take actions to protect profitability.
“Wolseley continues to be highly cash generative and we have adequate resources to fund future investment in the business, including bolt-on acquisitions and growth in ordinary dividends.
“We are today announcing a £250m share buyback programme which reflects the group’s strong financial position and management’s confidence in the business.”
