Member Article

Wolseley announces 5.4% revenue growth

Heating and plumbing firm, Wolseley, has announced strong growth in the U.S and Canada, and a 10.4% rise in trading profit.

The Leamington Spa-headquartered business said that despite “a year of slowing economic growth and considerable uncertainty”, it had increased its revenue by 5.4% year-on-year.

Trading profits of £658m rose despite a £17m restructuring charge which was knocked off this figure.

Wolseley said growth in the U.S was measured by weakness in Continental Europe and recovery in the UK.

A group revenue rose to £13,421m from £13,558m, which includes like-for-like growth of 3.8%.

The firm said its commitment to customer service and growth initiatives had supported its progress, and emphasis on operational efficiency.

Ian Meakins, Chief Executive, commented:“We are committed to generating attractive returns for shareholders by maintaining strong capital discipline.

“Wolseley continues to be highly cash generative and we have adequate resources to fund future investment in the business alongside growth in ordinary dividends.”

A final dividend of 40 pence per share was recommended by the businesses board, which is an increase of 33% from last year.

Mr Meakin added: “We will continue to reduce our cost base to protect profitability but also to make investments in our businesses that will improve the quality of our operations and generate growth in the future.

“Whilst we remain cautious about the outlook for our markets, we are confident that Wolseley will make good progress in the year ahead.”

This was posted in Bdaily's Members' News section by Miranda Dobson .