Wolseley UK’s trading profits were down 80% for the five months ended December 31, the company announced in a trading statement.
The group also said its debt increased by £557m (22%) to £3bn during the period, principally because of the adverse effects of currency exchange. But projections show it will meet its banking covenants.
UK and Ireland sales, including the Build Center chain, fell by about 12% with a “further deterioration” in the UK market in recent weeks. Previously announced restructuring actions are well under way and on track to deliver annual savings of £80m and a headcount reduction of 2,000 in the UK.
Wolseley chief executive Chip Hornsby said the group’s efforts would remain resolutely focused on achieving compliance with banking covenants.
Wolseley has committed and undrawn banking facilities of more than £1bn and has “no need” for additional monies until after the year ended July 31, 2011.
