Wolseley reports 28% profits growth

Global merchanting chain Wolseley has reported a 28% growth in group pre-tax profits to £250m for its half-year ending January 31.

Wolseley, which exited the UK building materials market with its sale of Build Center to Jewson last year, saw its sales rise 3% to £6.8bn for the period.

“Like-for-like growth trends for the group since the end of the period have been slightly lower than the first half overall with the US a little better and Europe a little weaker,” said chief executive Ian Meakins.

The group’s French business, which includes building materials business Reseau Pro and the Wood Solutions division, reported profits and sales growth in each of the last two quarters.

“Revenue in the Wood Solutions business was broadly flat as activity slowed in the second quarter whilst gross margins improved,” Wolseley said.

“The business performed in line with the market overall, with the structure and trusses business being ahead.”

Some 43% of Wolseley’s revenue is in the US, but the company has now sold its remaining share of Stock Building Supply, the building materials and lumber business.

The Office of Fair Trading (OFT) is considering an offer by Jewson to sell a branch in each of 22 local areas to remedy competition concerns raised by its completed acquisition of Build Center.

The OFT has suspended its referral of the merger to the Competition Authority while it considers the Jewson offer.