Wolseley warns of risks from the high pound as Q3 profits rise 10%

Plumb Center owner Wolseley yesterday reported a 10 per cent rise in third-quarter profits but warned that the stronger pound was likely to impact results this summer.

The group said good growth in Canada and the United States, where it generates around half of its revenues, helped push trading profits to £139 million in the three months to 30 April, up from £126m a year earlier.

Meanwhile Topps Tiles, the UK’s largest tile and wood flooring retailer, said it was encouraged by an uplift in recent trading having seen first-half profits drop 22 per cent to £5.6m.

The firm, which operates 320 stores and owns the Tile Clearing House brand, said like-for-like sales in the 26 weeks to 31 March fell 4.7 per cent to £86.6m.

Sales since the start of the second half were up by 4.5 per cent, but chief executive Matthew Williams warned that trading conditions remain challenging and it was too early to say whether this marked the start of an improving trend. Its interim dividend was unchanged at 0.5p.

Wolseley said third-quarter sales rose 3.8 per cent on a like-for-like basis to £3.1 billion, but revenues in France dropped 6.1 per cent as construction markets weakened.

The group, which recently sold off its Bathstore chain, warned its fourth-quarter profit growth will be “adversely impacted” if the strength of sterling against the euro continued.

Chief executive Ian Meakins said: “Given the uncertain economic outlook in Europe we will remain vigilant on the cost base while continuing to drive growth initiatives in the more robust markets.”