Wolseley plc, the world’s leading specialist distributor of plumbing and heating products, on Tuesday released its six-month financial results for the period ended Jan. 31, highlighted by reductions in non-U.S. branches and headcount despite total sales and profit gains. In it’s financial statement the company reported sales of £6.8 billion (US$9.7 billion), up 5.9 percent year-over-year.
“Announcing it intends to keep cutting its workforce Wosleley failed to impress investors this Tuesday, despite an almost objectively strong set of results that saw the company nearly triple its pre-tax profit to £367 million off the back of an 6% rise in full year revenue to £6.8 billion.” Said Connor Campbell, a senior market analyst at www.spreadex.com.
Ian Meakins, Chief Executive of Wolseley, commented “Market conditions remain mixed across the Group and we will therefore continue to invest in profitable growth where conditions are favourable and take actions to reduce our cost base and protect our profitability in weaker markets. After a low point in November , like-for-like revenue growth over the subsequent three month period to 29 February 2016 improved to 3.2 per cent for the Group and 5. 7 per cent in the USA. At current exchange rates, we expect Group trading profit for the ongoing businesses for the full year to be in line with the current consensus of analyst expectations. ”
Some geographical highlights of the financial statement include:
- In the USA, which accounts for 80% of ongoing Group trading profit, revenue grew by 4.3% on a like-for-like basis, against a very strong prior year comparative of 11.7%. Residential and commercial markets (both new build and RMI) continued to grow steadily with marketing share increasing for all major businesses.
- The UK, which accounts for 8% of ongoing Group trading profit, Like-for-like revenue was 2.0% lower, including price deflation of 1.4%.
- In the Nordics, which accounts for 5% of ongoing Group trading profit, Revenue was 4.2% ahead of last year on a like-for-like basis including price inflation of 0.8%.
In Canada like-for-like revenue was 1.8% lower due to the impact of oil and gas in the West. Canada accounts for 4% of ongoing Group trading profits.