Wolseley has released an upbeat trading update, saying its trading profits before exceptional items are likely to exceed analysts’ forecasts as long as current trends continue.
The group, which runs the Build Center chain in the UK, saw its share price increase by more than 11% following the announcement.
It said the achievement of better than expected cost efficiencies was the primary reason for expecting its profits to exceed the current £326m forecast profit for the financial year to July 31.
But it said the economic environment continues to provide limited visibility and demand was not consistent across its business units.
Wolseley shares were also boosted last week after analysts at MF Global said that recent increases in timber prices had not been priced in by the stock market.
The group will announce its half-year results for the six months ended January 31 on March 22.
