Wolseley chips £314m off its debts
BUILDING products distributor Wolseley has seen its profits increase and its debts reduce in the third quarter to April 30.
The Leamington Spa-based firm reported a trading profit of £139m,10.3% ahead of the corresponding period last year’s total of £126m.
The firm’s net debt was £277m, £314m better than 30 April 2011.
Chief executive Ian Meakins said: “Wolseley has continued to make decent progress in the third quarter, with good growth in the USA and Canada partly offset by Europe.
“We will continue to pursue operating efficiencies and remain focused on customer service, gaining market share and protecting our gross margins.
“Given the uncertain economic outlook in Europe we will remain vigilant on the cost base while continuing to drive growth initiatives in the more robust markets.”
During the quarter the group generated revenue of £3,069m, 4.7% ahead of last year and 3.8% ahead on a like-for-like basis.
Operating costs were 3.6% higher than last year including increases in employee share scheme expenses of £4m and £2m of one-off restructuring charges.
During the period Wolseley completed the previously announced sale of Brossette and sold Bathstore for £15m.
Two small bolt-on acquisitions were completed in the third quarter in the US and Denmark.
Wolseley says that in light of tough markets in Europe, it may incur further restructuring charges in the fourth quarter.
