28th Nov 2013 08:44
LONDON (Alliance News) - Building-materials distributor Wolseley PLC Thursday said ongoing business revenue increased 7.4% during the three months ended October 31, lifted by a strong performance across its international businesses.
Ongoing business excludes businesses that have been sold or are held for sale.
In an interim management statement, the company which supplies heating and plumbing products said revenue from ongoing businesses crept up to GBP3.47 billion in the first quarter from GBP3.23 billion in the first quarter a year earlier.
Wolseley said in terms of like-for-like growth, revenue had increased 3.5% on last year.
The USA arm saw revenue increase 10% to GBP1.83 billion from GBP1.66 billion a year ago - the largest increase across the business.
The Blended Branches, Heating, Ventilation and Air Conditioning (HVAC), Waterworks and B2C businesses all generated good like-for-like revenue growth and improved returns in the US, Wolseley said.
Gross margins were ahead of last year and overall US trading profit of GBP142 million was up from GBP122 million last year.
Overall, trading profit for the ongoing business increased 9.0% to GBP218 million, from GBP200 million in the corresponding period.
The group said it had strong cash generation. However, net debt multiplied to GBP469 million at October 31, compared with GBP87 million a year before. Wolseley is due to pay a GBP121 million final dividend and GBP300 million special dividend in December.
The stock was trading at 3,366.00 pence Thursday morning, down 29.00 pence or 0.8%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright © 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
WOS.L