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Wolseley Group report on weak UK trading

Wolseley exterior

Wolseley Group provided an interim statement this morning on their performance during Q3, the three months to 30th April 2017.

The results can be summarised as follows:-                

  • Like-for-like revenue growth of 6.6%. Exchange rate movements increased revenue by £423 million. 

  • Gross margin of 28.5% was 0.1% ahead of last year. 

  • Trading profit of £254 million. Exchange rate movements increased trading profit by £29 million and two fewer trading days reduced trading profit by £17 million. 

  • Net debt at 30 April 2017 of £1,132 million, in line with last year. 

  • Three acquisitions completed in the quarter for total consideration of £21 million.
  • Completed merger of Tobler with Walter Meier on 6 April 2017. 
  • Sold Endries, a small US fasteners business, for net proceeds of £186 million on 1 June 2017. 

  • Change of Group name to Ferguson plc approved by shareholders and will take effect on 31 July 2017. 

Commenting on the results, John Martin, Chief Executive, said: 
“Revenue growth in the quarter was good with US residential and commercial markets growing well and industrial markets improving. The Nordics returned to growth and the UK was broadly flat.

“Since the end of the period revenue growth has been broadly in line with the third quarter, gross margins and cost control have been good. The Group expects trading profit for the full year to be in line with current analyst consensus expectations.

Group Results

”During the quarter the Group generated revenue of £4,270 million, 4.6% ahead of last year at constant exchange rates and 6.6% ahead on a like-for-like basis. Trading profit of £254 million included a £29 million favourable impact from exchange rate movements. There were two fewer trading days in the period which reduced trading profit by £17 million and there will be one more day in the fourth quarter compared to the same quarter last year. In the third quarter a £30 million exceptional charge was incurred as a result of restructuring in the UK and Nordic regions. 

UK Results

Like-for-like revenue in the UK was 0.4% lower than last year including inflation of 3%. Repairs, maintenance and improvement markets remained weak. Gross margins were slightly ahead of last year and trading profit of £23 million was £3 million behind last year due to two fewer trading days. We continued to make good progress with the transformation strategy announced in September 2016. 

Download the full Q3 Interim Management Statement here.

Source: Insight DIY Team & Wolseley Press Release

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20 June 2017

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