Wolseley Share Discussion Threads

[broadwood] 25/3/2014 08:08

A good US performance and a recovery in the UK helped builder's merchant Wolseley to boost half-year profits by nearly nine per cent and hike its dividend by a quarter.

Wolseley, which owns brands such as Plumb, Pipe and Drain Center, said US markets were good in the six months to January 31st, while UK trading improved but demand stayed weak in continental Europe and Canada.

There was some business disruption towards the end of the period due to the extreme cold in many parts of the US and Canada. Demand in repair, maintenance and improvement (RMI) markets remained stable in most countries.

Revenue in the UK was 3.2% ahead of last year on a like-for-like basis, including 1% price inflation. The residential RMI market, which makes up about 60% of UK revenue, remained resilient.

Incentives for home-buyers such as the government's Help to Buy shared equity scheme helped to lift new house-building, representing about 5% of UK revenue.

"We continued to gain or hold market share in our most important businesses," the group said.

Interim trading profits climbed 8.8% to £360m on a 5.2% rise in revenue of ongoing businesses to £6.4bn, while like-for-like revenue lifted 3.2%. Pre-tax profit increased to £316m from £193m a year ago.

Wolseley said it was increasing its dividend by 25% to 27.5p.

Chief Executive Ian Meakins said Wolseley expected like-for-like revenue to increase by about 4% for the rest of the year.

He said the lower demand in mainland Europe needed "strong action on gross margins and costs to protect profitability", but did not give details.

"The like-for-like revenue growth rate in the US since the end of the period has been in line with what the business generated in the first quarter, with the like-for-like revenue growth rate for the group as a whole broadly consistent with the performance in the first half," Meakins added.

PW

[scobak] 18/3/2014 12:38

Yes, thanks for that. I have been mulling this over for a while now and think it better if I sell a proportion. I can soon use the cash on other more mobile shares. my holding had just got too big.

[scobak] 17/3/2014 20:38

Since the 30 for 31, wos appears to be lacking any direction. I have a largish holding and can find little to assist me with information which may be constructive - any ideas please.

[ftse350_utv] 12/2/2014 08:23

Unusual trading volume yesterday for WOS.
I have set a blog where I post daily the numbers for FTSE350 companies, and Wolseley made the list. The blog is unusualvolume.hostoi.com , thank you for having a look and hopefully it can help in your trading decisions.
Yesterday's unusual volume was confirmed this morning - Wolseley Agrees To Buy Puukeskus in Finland [ unusualvolume.hostoi.com/wordpress/?p=61 ]

[blapighead] 09/1/2014 08:44

That was an interesting first few minutes guess it was to knock some stops out

[dannyheywood] 01/1/2014 15:40

Something positive for the new year. WOS in 2014 share picks for Barclays and Guardian:

hxxp://www.theguardian.com/business/2013/dec/31/2014-share-tips-guardian-business

An upturn in construction markets in the US and to a lesser extent the UK should underpin growth at building materials group Wolseley. The company has around 80% of its business in these two markets, and after an unexciting 2013, its shares are looking more attractive at £34.25. The management is focusing on building up market share and improving margins, and with a strong balance sheet, there is also the prospect of bolt-on acquisitions to boost the company's results. According to analysts at Morgan Stanley, seven or eight opportunities are under discussion, ranging between £20m and £70m.

[f1araway] 28/11/2013 12:10

What's not to like about the statement & down she goes?!?

[lateralam] 13/11/2013 22:59

What happened with the II presentations?

[f1araway] 13/11/2013 17:11

Bad day at Black Rock - big FTSE drop + presentation to institutions didn't go well......

[elliotset] 01/10/2013 08:39

Back to £34 before we know it

[skinny] 01/10/2013 07:04

Financial highlights

§ Revenue of the ongoing businesses 4.1% ahead of last year, like-for-like growth of 2.9%.

§ Gross margin of the ongoing businesses of 27.8%, 0.3% ahead of last year.

§ Trading profit of the ongoing businesses £725 million, 10.7% ahead of last year.

§ Impairments and exceptional charges of £174 million (2012: £377 million).

§ Headline earnings per share of 181.8 pence, 8.0% ahead of last year.

§ Strong cash generation with net debt of £411 million (2012: £45 million net cash).

§ Proposed final dividend of 44 pence bringing total for year to 66 pence, 10.0% ahead of last year.

§ Proposed capital return of £300 million via a special dividend and share consolidation.

Operating and corporate highlights

§ Good growth in US, early signs of recovery in UK but continued weakness in Continental and North Europe.

§ Tight cost control and restructuring executed in Continental and North Europe.

§ Good flow-through of incremental revenue to trading profit.

§ Trading margin for the ongoing businesses of 5.6%, 0.3% higher than last year.

§ Six bolt-on acquisitions completed with annualised revenue of £301 million.

§ France strategy being executed as set out at the half year results.

[major clanger] 16/9/2013 15:12

Citi - Neutral from Outperform - TP unchanged at £37 [downgrade]

More here:

[lucky_punter] 15/5/2013 14:03

Help to buy, or charter to sell? Brokers split on govt aid for the housing market

There are two diametrically opposed views on the potential impact of the government's help to buy initiative for the housing market, prompting both upgrades and downgrades of stocks affected.

Jefferies pegs back its recommendations for Howden (LON:HWDN) and Travis Perkins (LON:TPK) to 'underperform' from 'hold' and continues to rate Wolseley (LON:WOS) 'underperform'.

[skinny] 26/3/2013 07:08

Financial highlights

§ Revenue in the ongoing businesses of £6,276 million, 2.2% ahead on a like-for-like basis.

§ Gross margin for the ongoing businesses increased to 27.8%.

§ Trading profit of the ongoing businesses 7.6% ahead of last year.

§ Trading margin for the ongoing businesses of 5.2%, 0.4% higher than last year.

§ Net debt of £871 million after £462 million of dividends, £125 million of one-off pension contributions and purchase of £110 million own shares by Employee Benefit Trusts.

§ Interim dividend increased by 10% to 22 pence per share.



Operating and corporate highlights

§ Continued market share gain and growth in USA, broadly flat in Canada and UK and weakness in Europe.

§ European headcount reduced by 990 (7.2%) since 31 July 2012.

§ Continued focus on productivity improvements across the Group.

§ In France, detailed plans to simplify and refocus Reseau Pro, its Building Materials business, including proposed disposal or closure of up to 40% of its network, to create a strong regional player in the north.

§ Four bolt-on acquisitions completed in the period for £120 million with aggregate annual revenue of £245 million.

[skinny] 20/3/2013 08:24

Liberum Capital Buy 3,300.00 3,302.00 3,150.00 3,730.00 Upgrades

[broadwood] 20/3/2013 07:38

Half yearly report due any day.

[knocknock] 04/2/2013 19:31

It's about time this buckled. Should be one of the swiftest movers to the downside when reality in the wider markets sets in.