Wolseley Group has continued to play down reports that it has put Build Center up for sale.
The group, which reported operating profits up 30% to £131m for the most recent quarter, confirmed it was reviewing its builders’ merchant operation, but insisted it was continuing a group-wide process begun last year.
Nineteen of its 41 subsidiaries were earmarked for review, including Build Center, and Brandon Hire was eventually sold in September. Analysts believe Build Center, Electric Center and insulation company Encon, together with French plumbing business Brossette will now go on the auction block and draw a line under the disposals programme.
Travis Perkins, Grafton and Saint-Gobain are said to have registered an interest in Build Center, which has 200 stores. Analysts expect closures as any buyer would dispose of the under-performing depots.
Revenues for the unit last year were about £300m. According to Wolseley’s latest trading statement, Build Center continued to improve its trading performance, benefiting from a lower cost base and a focus on higher margins.
As well as 30% growth in trading profits for its third quarter, Wolesley said strong revenue growth in the US, and positive momentum in Scandinavia and France were offset by weaker trends in the UK and Canada.
Revenue fell by 4% in the UK, although like-for-life revenue was 1% ahead, the difference largely a result of the disposal of Brandon Hire.
Wolesley said that in most of its trading regions new build housing remained subdued, but the RMI sector held up well in most markets.
