Tuesday 27 March 2012

Wolseley reports rising profits despite weak UK

Operator of Plumb Center and Ferguson chains in Britain and US said pre-tax profit in six months to end of January was £250m

Wolseley, the world’s biggest building supplies company, has reported a rise in profit. Photograph: Alamy

Wolseley, the world's biggest building supplies company, has reported a 28% rise in first-half profits but warned of slowing growth.

The operator of the Plumb Center and Ferguson chains in Britain and the US said pre-tax profit in the six months to the end of January was £250m, with revenue up 3% to £6.84bn.

The UK, which represents 15% of sales, declined 3%, while growth across Europe was mixed, with countries like Denmark, the Netherlands and Switzerland hampering growth elsewhere. Earlier this year the company sold its French distribution division, Brossette, and its UK-based Build Center business for £310m to Saint-Gobain - which also owns the UK chain Jewson - as part of a disposal strategy. Sales at its US business, which accounts for about 45% of revenue, rose 9% and the firm said trading conditions there and in Canada had continued to be strong.

The group increased its interim dividend by 33% to 20p a share.

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