Wolseley reports UK revenue down 10%

Builders merchant Wolseley yesterday reported lower UK revenues and profits after a difficult quarter for its brands Bathstore and Plumb Center.

The group, which generates sales of more than 13 billion a year and is the world's largest specialist distributor of plumbing and heating products, said UK profits fell by 10 per cent to 28 million in the three months to 30 April.

This included a 4m rise in bad debt charges and followed "significantly" lower revenues at consumer-focused Bathstore, which is reportedly up for sale as Wolseley looks to focus on core trade operations.

Plumb Center was also hit by the loss of a large parts supply contract as well as fewer boiler replacements following the end of the UK government's scrappage scheme a year ago.

Building trade supplier Build Center, which is also thought to be up for sale, improved its performance, while the company's drain, pipe and climate businesses all did well.

A good showing in the US and Northern Europe helped to lift Wolseley's sales overall by 1 per cent in the quarter to April to 3.27bn, but UK revenues fell by 4 per cent with like-for-like growth also falling sharply to just 1 per cent from 8 per cent in the previous three months.

Group trading profits for the quarter rose by 30 per cent to 131m as the US, Nordic and French operations all posted healthy gains. The US accounts for about 40 per cent of Wolseley's business.