Wolseley (WOS) will be relying heavily on a solid performance from its US operations when it announces full-year figures on Tuesday. Third-quarter like-for-like revenues in the US - which accounts for over half the plumbing and heating specialist's turnover - grew by 9 per cent, while the country's trading profit rose by £7m to £122m despite a £9m hit from currency effects.
Progress elsewhere has been less robust. Like-for-like revenue in the third quarter fell by 3.5 per cent in the UK. Demand relating to housebuilding grew strongly, but this accounts for just 5 per cent of UK revenue. Nearly two-thirds of revenue comes from the repair, maintenance and improvements (RMI) sector, where growth has been more pedestrian. Turnover has also been affected by management steering away from low-margin work in order to protect gross margins. Despite the lower sales, third-quarter trading profit in the UK were flat at £24m.
