16.07.2008

Wolseley trading statement

Wolseley, the global plumbers and builders merchants and owner of UK based rental company Brandon Hire, has issued its trading statement for the 11 months to the end of June.

Group revenues are up one percent, while pre-tax profits dropped 35 percent. In the North American market revenues dropped eight percent and profits by 46 percent. In Europe revenues climbed by 13 percent while profits slipped by two percent.

In Europe the company experienced most difficulty in Ireland but also noted that the drop in UK house building over the past few weeks will have an impact on the group going forward.

During the same period the group has reduced its net debt by £183 million reduced gearing to 77 percent. The directors are recommending that no final dividend be paid, in order to save cash.

There was no mention in the statement about the group’s rental business which is currently restricted to the UK.