Wolseley held back by weak Europe

Trading in the US accounts for just over half of group turnover. Revenue grew by 8 per cent on a like-for-like basis, pushing trading margins up to a record 7.7 per cent. On top of this, four bolt-on acquisitions were completed, delivering a further 1 per cent revenue growth. But even in the US trading was patchy. Activity in the repair, maintenance, improvement (RMI) market continued to grow steadily, but the new residential market reported only modest growth. The non-residential side was more positive, especially the water works business, while sales generated through e-commerce channels also grew strongly.

In the UK, which is responsible for 15 per cent of group revenue, sales grew 5 per cent. But that's only after including acquisitions, without which revenue was basically flat. Not surprisingly, business from the house building sector grew strongly, but this only accounts for 7 per cent of UK revenue. The RMI market, which accounts for over half of domestic sales, remained in the doldrums. In fact, market share declined in the second half as managers turned down some work in order to protect margins.

In central Europe and France, which represent 9 per cent of group revenues, like-for-like sales fell 1.9 per cent. Notable challenges remain in the Netherlands, France and Switzerland, and trading profit for the whole region fell from £46m to £34m.

Analysts at Bank of America Merrill Lynch are forecasting adjusted pre-tax profits for the coming year of £796m and EPS of 214p (from £725m and 196p in 2013-14).