Wolseley to shut Ripon distribution centre
TROUBLED plumbing and heating specialist Wolseley is to shut its Ripon distribution centre in an effort to save costs.
Centres in Didcot, Chorley, and Henfield will also be closed as the global giant attempts to “rationalise” its supply chain to reduce overcapacity in the UK.
Around 270 staff will be made redundant as a result of the decision although it is not clear how many will be lost in Ripon, where Wolseley also has its UK headquarters.
In an interim management statement announced for the nine months ended April 30 Wolseley said that most of its markets had continued to weaken against a background of deteriorating economic conditions.
Pre-tax profit fell 80% during the period to £72m.
All of the group’s European operations have witnessed declining economic activity in the period but Wolseley’s markets in the Nordic region and the UK and Ireland have generally shown greater levels of decline than markets elsewhere in continental Europe.
A further raft of job losses have been announced in France, Ireland, Sweden and the US.
However, the group said despite a challenging trading backdrop it remained on tract to deliver a 10% year-on-year constant currency improvement in working capital.
Capital expenditure for the current financial year has been further curtailed and is likely to be around £160m, or £20m lower than previously indicated.
Wolseley also successfully strengthened its balance sheet back in March to the tune of £1bn following a rights issue.
Chip Hornsby, group chief executive of Wolseley, said: “Recent trading has proved extremely challenging and we continue to anticipate this will be the case until at least early 2010.
“In the circumstances our drive for tighter cost control and strong cash generation remains a key area of focus for the group.”
Since last August, the group has implemented a number of restructuring measures including headcount reductions of around 17,000 and 713 branch closures. Around 2,500 staff losses have been in the UK.
