Wolseley warns of tougher trading

The company warned that it will remain vigilant on costs due to uncertainty over the outlook.

The FTSE 100 company said underlying operating profit rose 16 per cent to £185m in the three months to end-October, helped by strong growth across its US businesses.

Overall like-for-like revenue was up five per cent to £3.64bn.

“Wolseley has continued to grow well, with strong growth in the USA offset by lower growth in some of our European businesses,” said chief executive Ian Meakins.

“Given continuing macroeconomic uncertainty, trading conditions may get tougher in the coming months,” he added.

Wolseley, operator of the Plumb Centre and Ferguson chains in Britain and the United States, said that like-for-like revenue rose 10 per cent in the US, and all its key businesses continued to take market share.

This compares with a three per cent decline in like-for-like revenue during the first quarter in the UK. The company has a base in Ripon, North Yorkshire.

Earlier this year Wolselsy sold its French distribution division Brossette and its UK-based Build Centre business for £310m to Saint-Gobain - which also owns the UK chain Jewson - as part of a disposal strategy.