Pre-tax profits move back to black at Wolseley

PRE-tax profits at building supplies group Wolseley have moved out of the red this year to complete what has been a busy period for the plc.

In its full-year results for the 12 months ended July 31, 2011, pre-tax profits went from a loss of £328m to a £391m in the black.

Wolseley operates brands such as Plumb Center, Climate Center and Pipe Center, all of which are headquartered in Leamington Spa, and during the summer it sold two of its other Warwickshire companies, Electric Center and Build Center.

Gross profit at the group has climbed slightly year-on-year from £13.2m to £13.55m while trading profit rose sharply from £450m to £622m before exceptional items, amortisation and impairment of acquired intangibles and non-recurring tax credits.

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Adjusted net debt fell dramatically from £1.19bn to £705m which includes financing and construction loan debt.

The statement said the group had completed five acquisitions in America and Denmark since last year and the disposal of its non-core businesses had been largely completed.

It has also redomiciled its global plc headquarters to Switzerland and refinanced a £822m revolving credit facility while planning new investment of £160m which will include 90 new branches.

Chief executive Ian Meakins said: “We have delivered another decent set of results despite challenging economic conditions, with better customer service driving sales and strong trading profit growth.

“Our ongoing focus on market share gains, protecting gross margins and tightly controlling cost led to a £172m improvement in trading profit.

“Recent economic forecasts have weakened and over time this is likely to have an impact on our markets.”