Wolseley sees strong revenue growth on back of US performance
WARWICKSHIRE-based building supplies group Wolseley UK has achieved a revenue figure 9.8% ahead of last year at constant exchange rates.
In an interim management statement covering the three months to October 31, the Leamington Spa firm reported revenue of £3.5bn compared to £3.33bn in Q1 2014.
Trading profit in its on-going businesses is £235m, a 13.5% increase at constant exchange rates compared to last year’s £216m figure.
Net debt is £858m compared to the £469m reported in its first quarter last year, partly through purchasing £120m of its own shares.
Four bolt-on acquisitions were completed in the quarter with total annualised revenue of £26m.
Since the end of the quarter Wolseley has agreed the disposal of a small non-core business in the US for cash consideration of £19m.
Ian Meakins, chief executive, said: “Wolseley has continued to generate strong revenue growth across all businesses and all regions in the USA with double digit growth for the second consecutive quarter.
“We generated modest like-for-like revenue growth in Canada, UK and Nordics. Central Europe and France declined due to continued weak market conditions.
“While we held our gross margins overall, there remained substantial pressure on gross margins throughout Europe.
“We controlled our operating expenses resulting in good flow-through to trading profit in the on-going businesses. Cash generation was strong and we are continuing to invest in technology and new business models to deliver better customer service and gain market share.”
