Wolseley Share Discussion Threads

[skinny] 04/12/2012 07:09

First quarter highlights

§ Gross margin of 27.2% in line with the same period last year.

§ Trading profit up 7.6% at £198 million.

§ Continued strong cash generation with net debt of £87 million.

§ Two acquisitions in the USA for total consideration of £80 million.

§ After the end of the period agreed to acquire 22 Burdens branches, subject to OFT approval.

§ Restructuring charges committed to date in Continental Europe of £33 million.

[skinny] 02/10/2012 07:02

Financial highlights

§ Revenue of the ongoing businesses 5.4% ahead of last year.

§ Trading profit of the ongoing businesses £658 million, 10.4% ahead of last year.

§ Restructuring charges of £17 million (2011: £nil) charged to trading profit.

§ Non-cash goodwill impairment of £353 million relating to acquisitions in 2003 to 2007.

§ Headline earnings per share of 168.4 pence, 17.8% ahead of last year.

§ Strong cash generation with net cash of £45 million, £568 million better than 31 July 2011.

§ Proposed final dividend of 40 pence bringing total for the year to 60 pence, 33.3% ahead.

§ Proposed capital return of £350 million via a special dividend and share consolidation.

Operating and corporate highlights

§ Good growth in USA and Canada, recovery in UK and weakness in Continental Europe.

§ Gross margin in the ongoing business of 27.5%, 0.2% below last year despite significant pricing pressure and 0.1% adverse impact of non-recurring charges.

§ Further gains in productivity and flow through of incremental revenue to trading profit.

§ Trading margin for the ongoing businesses of 5.2%, 0.3% higher than last year.

§ Nine bolt-on acquisitions with annualised revenue of £125 million.

§ Disposals of Build Center, Brossette, Encon, Bathstore and residual stake in Stock Building Supply completed; and Woodcote sold since the year end.

§ Ongoing review of future strategic options in France, as announced in July.

[bigbigdave] 30/9/2012 07:21

STimes

Wolseley to cement success with special dividend

WOLSELEY is set to return several hundred million pounds to investors when the building materials supplier reports annual results this week.

Ian Meakins, the chief executive, could reveal a special dividend of between 100p and 200p, according to analysts at UBS.

This would result in a cash return of about £286m at the bottom end of the range and up to £572m at the top.

The FTSE 100 company had previously indicated it would consider returning excess capital to shareholders if there were no sizable acquisition opportunities.

"We believe the market is increasingly expecting a special dividend given the significantly improved balance sheet," UBS said in a research note to clients this month.

Wolseley is the world's largest trade distributor of plumbing and heating products, with 44,000 employees in 23 countries.

On Tuesday, the group will report pre-tax profits of about £518m on revenues of £13.5 billion, according to forecasts. It is expected to write down the value of its struggling European business. In July, the group said it was considering offloading the remainder of its French business, following the sale of its Brossette subsidiary last year. Wolseley warned it could write off all the division's £136m of goodwill.

It also cautioned that it would cut the value of the £393m of goodwill at its Danish business.

Wolseley shares have risen 76% in the past year as Meakins and his team have slimmed down the group, selling off underperforming assets such as the Bathstore and Build Center chains. The shares closed at £26.52 on Friday, valuing the group at £7.59 billion.

[mbthedude] 17/9/2012 14:05

I decided to close this morning will sit on the sidelines for a while

[skinny] 14/9/2012 15:38

I've too have now closed - these have been an excellent long term buy and hold for me and I will keep watching.

[skinny] 14/9/2012 14:11

Hmmmmm - now up 6.3% on the day @2838p Maybe it is getting ahead of itself.

[mbthedude] 14/9/2012 13:45

EJ

You don't think that 2750 to 2630 was it then?

[declan2] 14/9/2012 13:04

Got badly burnt with a short on this

[skinny] 14/9/2012 09:16

Yes - you can't beat a boring share! :-)

[mbthedude] 14/9/2012 09:11

Pleasantly surprised to see it has recovered over 2700 in such quick time.

[skinny] 07/9/2012 13:52

Multi year highs today.

[mbthedude] 17/8/2012 10:14

That wasn't a good short was it?

[topdoc] 17/7/2012 07:09

time to go short

[skinny] 17/7/2012 07:04

17 July 2012


Wolseley plc - CONTINENTAL EUROPE
----------------------------------

Wolseley's strategy is to focus on businesses where it can establish leading positions in attractive markets and consistently generate good returns for shareholders. In this context, we have decided to explore strategic options for the future of our businesses in France. In the year ended 31 July 2011 the businesses generated revenue of GBP1.3 billion and employed net assets of approximately GBP500 million, including GBP136 million of goodwill. In light of this review the appropriate carrying value of these assets will be assessed at year-end and this is likely to give rise to a non-cash impairment charge. This announcement is being made in order to enable us to commence consultation with our employees in France. In our Q3 IMS we reported difficult market conditions in Continental Europe and these conditions have continued. We continue to take appropriate actions to reduce our cost base and, in line with previous guidance, we have incurred one-off restructuring costs of approximately GBP20 million since 1 August 2011. As previously stated, it is likely that these costs will be charged to trading profit. In Denmark, where we have strong market positions, trading conditions have remained challenging and we will review the carrying value of goodwill and intangible assets of GBP393 million associated with this business. This is also likely to give rise to a non-cash impairment charge.

[skinny] 22/6/2012 12:09

Blackrock > 15%.

[lucky_punter] 19/6/2012 07:47

Shares in Wolseley (LON:WOS) could be trading at 5,000 pence each by 2015, according to Citigroup.
With more confidence about the margin potential, market share gain opportunities and the benefit of balance sheet options, Citi analyst Clyde Lewis reckons the world's leading distributor of heating and plumbing products could reach the magic mark in just two and a half years.

[random jargon] 29/5/2012 14:49

Too much focus on the UK weakness in the media.....oversold IMO

[shuisky] 17/4/2012 14:21

Given WOS' exposure to the US housing market, you fellahs might like this article...