Building products giant Wolseley reported profits and sales up in the last quarter, despite a fall in revenues from the UK businesses it is selling, including Build Center.
In the three months to the end of October group trading profit rose 16% to £185m and revenue 5% to £3.6bn. At the same time adjusted net debt was cut by £118m to £587m.
Strongest improvement came in Wolseley’s US operations, which saw revenue increase by 11% to £1.5bn.
In the UK, sales were down 7% to £591m, although, excluding the businesses up for sale, like-for-like revenue improved 1%, with poor performance at Plumb and Parts Center offset by “strong growth at Pipe and Climate and Drain Center”.
In November Wolseley announced the completion of the £145m sale of Build Center to Saint-Gobain, with most branches set to be assimiliated into the Jewson chain.
Revenues in the quarter from this business, along with Wolseley’s other disposals, Brandon Hire, Electric Center, Encon and its Irish operations, fell £37m to £142m.
Wolseley chief executive Ian Meakins cautioned that trading conditions would get tougher in coming months, but said the company was “well positioned to continue to invest selectively where it can generate good returns”.
A Group spokesperson said there was no further update on when Wolseley expects competition authority clearance for the sale of Build Center. Jewson managing director Peter Hindle said earlier he expected a decision by February.
