Strong trading in Wolseley’s (WOS) US operation more than offset further weakness in Europe, and the group's full-year trading profit before impairments and exceptionals grew 10.7 per cent to £725m. The heating and plumbing supplier also plans to return £300m in December through a special dividend - accompanied by a share consolidation.
The US business generates just over half of group sales and revenue here rose 8.2 per cent on a like-for-like basis to £6.79bn - reflecting a resilient repair and maintenance sector, and a recovery in new residential construction. Moreover, the US trading margin rose from 6.3 per cent to 7.3 per cent; beating the previous peak achieved in 2007. The UK, meanwhile - which generates 14 per cent of group sales - grew turnover by 2.5 per cent, although pricing pressures and the dilutive effect of acquisitions meant that the margin here dipped from 5.6 per cent to 5.4 per cent.
But conditions in the Nordic countries, France and Central Europe (26 per cent of group revenue) were much tougher. France turned in the worst performance and Wolseley plans to sell or close 109 branches there, but still expects the ongoing business to make a loss in the current year.
Broker Goodbody expects adjusted full-year EPS of 205.1p (2013: 180.1p).
| WOLSELEY (WOS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 3,268p | MARKET VALUE: | £8.97bn | |
| TOUCH: | 3,265-3,268p | 12-MONTH HIGH: | 3,483p | LOW: 2,601p |
| DIVIDEND YIELD: | 2.0% | PE RATIO: | 31 | |
| NET ASSET VALUE: | 1,113p* | NET DEBT: | 13% | |
| Year to 30 Jul | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 14.4 | -766 | -348 | nil |
| 2010 | 13.2 | -328 | -130 | nil |
| 2011 | 13.6 | 391 | 99.4 | 45.0 |
| 2012 | 13.4 | 198 | 21.2 | 60.0 |
| 2013 | 13.2 | 473 | 106 | 66.0 |
| % change | -1 | +139 | +401 | +10 |
Ex-div: 9 Oct Payment: 2 Dec *Includes intangible assets of £1.25bn, or 454p a share | ||||
