Wolseley plans to redomicile to Switzerland

PLUMBING distribution company Wolseley has announced it plans to redomicile to Switzerland.

The firm, which has a big operation in Leamington Spa, says it will create a new group holding company which will be UK listed, incorporated in Jersey and have tax residence in Switzerland.

It said its board had concluded the interests of the business and shareholders were best served by establishing an international holding company structure to provide more certainty in its taxation position.

A new group holding company, ‘New Wolseley’, would be incorporated in Jersey, with its tax residence in Switzerland.

The proposals were expected to enable the group to achieve a competitive effective corporate tax rate, it said today.

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The proposals would not change the tax position of the UK business, a company statement added.

The changes are subject to shareholder approval, with full details due to published during October, and become effective around November 23.

Today’s announcement coincides with the company’s final year results for the 12 months ended July 31, 2010.

Year-on-year revenues have dropped from £14.4m to £13.2m while gross margin was maintained at nearly 28%.

Wolseley said it had reduced its operating costs by 10%, or £353m, and had achieved a trading profit of £450m.

In a final announcement today, Gareth Davis is to succeed John Whybrow as chairman of the company at its AGM in January.

Mr Davis has been a non-executive director of Wolseley since 2003 and is a member of the audit, remuneration and nominations committees.

He was appointed as its board’s senior independent non-executive director in 2004.