1st Oct 2013 10:49
LONDON (Alliance News) - Plumbing and heating products distributor Wolseley Plc. (WOSCF.PK, WOS.L, WOSYY.PK) Tuesday reported a sharp increase in fiscal 2013 profit, on lower impairments and exceptional charges, despite a decline in revenues. The board has recommended a higher final dividend, and has proposed capital return of 300 million pounds through a special dividend and share consolidation.
The building materials group said revenue growth rates in the new financial year have been similar to the fourth quarter of last year.
Revenues from ongoing businesses for the fiscal year improved 4.1 percent, and like-for-like growth was 2.9 percent. Ongoing businesses exclude businesses that have been sold or are held for sale, the company said.
Ian Meakins, chief executive of the company said, "The highlight of these results was another strong performance across our US business where we achieved good revenue growth and the trading margin of 7.3 per cent was ahead of the previous peak achieved in 2007."
Revenues from ongoing businesses in USA grew 10.0 percent, and like-for-like growth was 8.2 percent. USA represented 53 percent of ongoing Group revenue.
According to the company, Canada and the UK performed well amid tough market conditions. However, it expects the challenging economic conditions in Continental Europe to remain the same for the foreseeable future.
For the fiscal year ended July 31, 2013, Wolseley posted profit before tax of 473 million pounds, higher than 198 million pounds in the previous year.
Profit before tax, exceptional items and the amortization and impairment of acquired intangibles increased to 702 million pounds from 635 million in fiscal 2012.
On a per share basis, earnings climbed to 109.6 pence from 19.9 pence per share in the prior year. Headline earnings per share grew to 180.1 pence from 166.7 pence per share a year ago.
The company stated that impairments and exceptional charges of 174 million pounds were principally related to restructuring in Continental and North Europe, compared to 377 million pounds last year.
Annual revenues declined to 13.15 billion pounds from 13.42 billion pounds a year ago.
The board has recommended a final dividend of 44 pence per share, up from 40 pence per share paid last year, to shareholders of record on October 11, 2013, payable on December 2.
This will bring the total dividend for the year to 66 pence per share, an increase of 10 percent from the prior year.
WOS.L is currently trading at 3,233 pence, up 1.13%.
Copyright RTT News/dpa-AFX
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