First quarter highlights
- Like-for-like revenue growth of 2.1%.
- Gross margin of 27.2% in line with the same period last year.
- Trading profit up 7.6% at 198 million.
- Continued strong cash generation with net debt of 87 million.
- Two acquisitions in the USA for total consideration of 80 million.
- After the end of the period agreed to acquire 22 Burdens branches, subject to OFT approval.
- Restructuring charges committed to date in Continental Europe of 33 million.
Commenting on the trading outlook, Ian Meakins, Chief Executive said:
"Wolseley has continued to generate good growth in the USA and Canada though revenue has declined in Continental Europe as a result of continuing tough market conditions, particularly in the Nordics and France, and unfavourable currency movements. Improvements to customer service continued to drive market share gains in our largest business units. In the current macroeconomic environment we are working hard to protect gross margins and to drive further operating efficiencies to protect profitability. Cash generation is a key focus and the strength of our balance sheet provides opportunities to invest selectively where we can generate good returns."
