Wolseley plc’s UK business, including the Build Center chain, reported a 17% increase in trading profits for the quarter ended October 31.
The merchant chain said the increase, excluding £5m of restructuring costs, was due to the benefits of cost reduction actions in the past year.
The overall gross margin was around 2% lower than a year ago because of competitive pricing pressure, while revenue was down by about 13%.
“There are increasing signs of stabilisation in the residential and RMI markets in the UK and there has recently been a slowing in the rate of decline in the commercial and industrial market,” the company said.
Overall the Wolseley group reported revenue of £3.3bn, a 13% decrease on a year ago and pre-tax profits of £76m, down 45%.
Ian Meakins, group chief executive, said the trading environment continued to be “extremely tough” and Wolseley would continue to focus on delivering improved service, protecting share and gross margin, driving further cost reductions and delivering a good cash performance.
