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WOS Wolseley

4,527.00
0.00 (0.00%)
Last Updated: 00:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Wolseley LSE:WOS London Ordinary Share JE00BFNWV485 ORD 10 53/66P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 4,527.00 4,530.00 4,532.00 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Wolseley PLC Q3 Interim Management Statement (5308I)

20/06/2017 7:00am

UK Regulatory


Wolseley (LSE:WOS)
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TIDMWOS

RNS Number : 5308I

Wolseley PLC

20 June 2017

20 June 2017

Interim Management Statement for the 3 months to 30 April 2017

 
 GBP million       Q3 2017   Q3 2016   Change          Change   Like-for-like 
                                 (2)             (at constant          change 
                                                     exchange             (3) 
                                                       rates) 
================  ========  ========  =======  ==============  ============== 
 Revenue             4,270     3,658   +16.7%           +4.6%           +6.6% 
 Trading profit 
  (1)                  254       232    +9.5% 
 Trading days           63        65      (2) 
 Net debt            1,132     1,131 
 

Third quarter highlights

- Like-for-like revenue growth of 6.6%. Exchange rate movements increased revenue by GBP423 million.

   -       Gross margin of 28.5% was 0.1% ahead of last year. 

- Trading profit of GBP254 million. Exchange rate movements increased trading profit by GBP29 million and two fewer trading days reduced trading profit by GBP17 million.

   -       Net debt at 30 April 2017 of GBP1,132 million, in line with last year. 
   -       Three acquisitions completed in the quarter for total consideration of GBP21 million. 
   -       Completed merger of Tobler with Walter Meier on 6 April 2017. 

- Sold Endries, a small US fasteners business, for net proceeds of GBP186 million on 1 June 2017.

- Change of Group name to Ferguson plc approved by shareholders and will take effect on 31 July 2017.

Commenting on the results, John Martin, Chief Executive, said:

"Revenue growth in the quarter was good with US residential and commercial markets growing well and industrial markets improving. The Nordics returned to growth and the UK was broadly flat.

"Since the end of the period revenue growth has been broadly in line with the third quarter, gross margins and cost control have been good. The Group expects trading profit for the full year to be in line with current analyst consensus expectations."

Group results

During the quarter the Group generated revenue of GBP4,270 million, 4.6% ahead of last year at constant exchange rates and 6.6% ahead on a like-for-like basis. Trading profit of GBP254 million included a GBP29 million favourable impact from exchange rate movements. There were two fewer trading days in the period which reduced trading profit by GBP17 million and there will be one more day in the fourth quarter compared to the same quarter last year. In the third quarter a GBP30 million exceptional charge was incurred as a result of restructuring in the UK and Nordic regions.

 
 1)   Before exceptional items and the amortisation 
       and impairment of acquired intangibles. 
 2)   Trading profit for the three months to 30 April 
       2016 has been restated to exclude GBP2 million 
       of restructuring costs classified as exceptional. 
 3)   The increase or decrease in revenue excluding 
       the effect of currency exchange, acquisitions 
       and disposals, trading days and branch openings 
       and closures. 
 

Three months to 30 April by region

 
 GBP million          Revenue    Currency   Trading         Growth    Revenue 
                           Q3    exchange      days    / (Decline)    Q3 2017 
                         2016      impact    impact 
=================    ========  ==========  ========  =============  ========= 
 USA                    2,414         352      (84)            321      3,003 
 UK                       529           -      (16)            (7)        506 
 Nordics                  457          40      (17)              4        484 
 Canada and 
  Central Europe          258          31       (9)            (3)        277 
===================  ========  ==========  ========  =============  ========= 
 Group                  3,658         423     (126)            315      4,270 
-------------------  --------  ----------  --------  -------------  --------- 
 
 
 GBP million          Trading    Currency   Trading         Growth    Trading 
                       profit    exchange      days    / (Decline)     profit 
                           Q3      impact    impact                   Q3 2017 
                         2016 
=================    ========  ==========  ========  =============  ========= 
 USA                      204          29      (12)              6        227 
 UK                        26           -       (3)              -         23 
 Nordics                    7           -       (1)            (1)          5 
 Canada and 
  Central Europe            7           -       (1)              3          9 
 Central costs           (12)           -         -              2       (10) 
===================  ========  ==========  ========  =============  ========= 
 Group                    232          29      (17)             10        254 
-------------------  --------  ----------  --------  -------------  --------- 
 

Quarterly like-for-like revenue growth trends were as follows:

 
                                  Q3       Q4       Q1       Q2       Q3 
                                2016     2016     2017     2017     2017 
===========================  =======  =======  =======  =======  ======= 
 USA                           +5.0%    +3.1%    +4.2%    +6.7%    +8.5% 
 UK                           (0.4%)   (2.1%)   (2.9%)    +3.6%   (0.4%) 
 Nordics                      (2.6%)   (2.3%)   (2.9%)   (1.5%)    +4.3% 
 Canada and Central Europe         -    +0.3%   (2.7%)    +0.3%    +5.1% 
===========================  =======  =======  =======  =======  ======= 
 Group                         +2.8%    +1.5%    +1.8%    +4.8%    +6.6% 
===========================  =======  =======  =======  =======  ======= 
 

USA

Ferguson, our US plumbing and heating business, grew revenue by 8.5% on a like-for-like basis. There was no significant impact from price inflation in the period. Acquisitions contributed another 2.8% of revenue growth. All businesses generated like-for-like revenue growth in the quarter with good growth across residential and commercial markets and industrial markets improving. Gross margins were broadly consistent with last year and operating costs were 12.3% higher at constant exchange rates, including 3.6% from acquisitions. Trading profit of GBP227 million was GBP23 million ahead of last year including a GBP29 million favourable impact from exchange rate movements and a GBP12 million negative impact from two fewer trading days. Three acquisitions were completed in the quarter, with total annualised revenue of GBP39 million. During the quarter we sold Endries, a small fasteners business, for GBP186 million.

UK

Like-for-like revenue in the UK was 0.4% lower than last year including inflation of 3%. Repairs, maintenance and improvement markets remained weak. Gross margins were slightly ahead of last year and trading profit of GBP23 million was GBP3 million behind last year due to two fewer trading days. We continued to make good progress with the transformation strategy announced in September 2016.

Nordics

Like-for-like revenue in the Nordics was 4.3% ahead of last year. Gross margins were weaker and operating costs were in line. Trading profit of GBP5 million was GBP2 million behind last year including a GBP1 million negative impact from fewer trading days.

Canada and Central Europe

Like-for-like revenue in Canada and Central Europe was 5.1% ahead of last year. Gross margins were in line and operating costs were 7.9% lower at constant exchange rates. Trading profit of GBP9 million was GBP2 million ahead of last year including a GBP1 million impact from fewer trading days. As previously announced the merger of Tobler with Walter Meier in Switzerland was completed on 6 April 2017 and Wolseley now owns 39.2% of the combined business.

Nine months trading performance

 
 GBP million           Revenue   Revenue      Change   Trading   Trading      Change 
                          2017      2016         (at    profit    profit         (at 
  9 months to 30                            constant      2017      2016    constant 
  April 2017                                exchange                 (2)    exchange 
                                              rates)                          rates) 
                                                 (1)                             (1) 
====================  ========  ========  ==========  ========  ========  ========== 
 USA                     8,763     6,795       +9.4%       678       549       +4.8% 
 UK                      1,517     1,525      (0.5%)        58        63      (7.9%) 
 Nordics                 1,520     1,342      (1.4%)        21        30     (40.4%) 
 Canada and Central 
  Europe (CCE)             931       791      (0.2%)        43        37      (3.0%) 
 Central costs                                            (31)      (34) 
====================  ========  ========  ==========  ========  ========  ========== 
 Group                  12,731    10,453       +6.0%       769       645       +2.1% 
--------------------  --------  --------  ----------  --------  --------  ---------- 
 
 
 1)   Trading days were consistent in 2016 and 2017. 
 2)   Trading profit for the nine months to 30 April 
       2016 has been restated to exclude GBP5 million 
       of restructuring costs classified as exceptional. 
 

These results above include the following businesses being sold or merged that will not be included in the ongoing results at 31 July 2017:

 
 GBP million             Revenue   Revenue   Trading   Trading 
                            2017      2016    profit    profit 
  9 months to 30                                2017      2016 
  April 2017 
======================  ========  ========  ========  ======== 
 Nordics (being 
  sold)                    1,520     1,342        21        30 
 USA - Endries (sold 
  on 1 June 2017)            151       122        14         9 
 CCE - Tobler (merged 
  on 6 April 2017)           175       174        11        12 
======================  ========  ========  ========  ======== 
 

Financial position

Net debt at 30 April 2017 was in line with our expectations at GBP1,132 million (30 April 2016: GBP1,131 million). The interim dividend of GBP92 million was paid to shareholders on 28 April 2017. Total acquisition consideration in the quarter was GBP21 million and GBP94 million was received on the merger of Tobler with Walter Meier. Since the period end we have received net proceeds of GBP186 million relating to the disposal of Endries, our small US fasteners business. There have been no other significant changes in the financial position of the Group.

Group name change

On 23 May 2017 shareholders approved a resolution to change the name of the Group to Ferguson plc which will become effective on 31 July 2017. The Group will continue to maintain the Wolseley trading name in the UK and Canada where it has strong local recognition. As previously announced, we will also change the presentational currency of the Group to US dollars from 1 August 2017.

Board changes

As previously announced Mike Powell joined the Group as Chief Financial Officer on 1 June 2017. Mike joined from BBA Aviation plc where he served as the Group Finance Director.

As announced on 8 June 2017 Nadia Shouraboura has been appointed to the Board as a Non-Executive Director effective from 1 July 2017. Nadia, a US Citizen, was formally a Vice President at Amazon.com, Inc. After eight years at Amazon, she founded Hointer Inc., a Seattle based consultancy that helps retailers create innovative in-store experiences. She is also a Non-Executive Director of Cimpress NV, which provides physical and digital marketing products for small businesses.

Outlook

Since the end of the period revenue growth has been broadly in line with the third quarter, gross margins and cost control have been good. The Group expects trading profit for the full year to be in line with current analyst consensus expectations.

For further information please contact

Wolseley plc

 
 Mark Fearon, Director of Corporate               +44 (0) 7711 
  Communications and IR                Mobile:     875070 
 Mike Ward, Head of Corporate                     +44 (0) 7984 
  Communications                       Mobile:     417060 
 

Brunswick (Media Enquiries)

 
                                               +44 (0)20 7404 
 Michael Harrison, Charlie Pretzlik    Tel:     5959 
 

Investor conference call

A conference call with John Martin, Chief Executive will commence at 08.00 UK time today. The call will be recorded and available on our website after the event www.wolseley.com.

 
 Dial in number    UK:             +44 (0)330 336 9105 
  Switzerland:                     +41 (0)22 567 5729 
 

Ask for the Wolseley call quoting 6464604.

Wolseley plc is the world's largest specialist trade distributor of plumbing and heating products to professional contractors principally operating in North America and the UK. Revenue for the year ended 31 July 2016 was GBP14,430 million and trading profit was GBP917 million. Wolseley has about 39,000 employees, is listed on the London Stock Exchange (LSE: WOS) and is in the FTSE 100 index of listed companies. On 23 May 2017 shareholders approved a resolution to change the name of the Group to Ferguson plc which will become effective on 31 July 2017. For more information, please visit www.wolseley.com or follow us on Twitter https://twitter.com/wolseleyplc.

Financial Calendar

 
 Name change to Ferguson        31 July 2017 
  plc 
  Full Year Results              3 October 2017 
 Annual general meeting         28 November 2017 
 Q1 IMS for the period ending   5 December 2017 
  31 October 2017 
 

Certain information included in this announcement is forward-looking and involves risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed or implied by forward-looking statements. Forward-looking statements cover all matters which are not historical facts and include, without limitation, projections relating to results of operations and financial conditions and the Company's plans and objectives for future operations, including, without limitation, discussions of expected future revenues, financing plans, expected expenditures and divestments, risks associated with changes in economic conditions, the strength of the plumbing and heating and building materials market in North America and Europe, fluctuations in product prices and changes in exchange and interest rates. Forward-looking statements can be identified by the use of forward-looking terminology, including terms such as "believes", "estimates", "anticipates", "expects", "forecasts", "intends", "plans", "projects", "goal", "target", "aim", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. Forward-looking statements are not guarantees of future performance. All forward-looking statements in this announcement are based upon information known to the Company on the date of this announcement. Accordingly, no assurance can be given that any particular expectation will be met and readers are cautioned not to place undue reliance on forward-looking statements, which speak only at their respective dates. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules, the Prospectus Rules, the Disclosure Rules and the Transparency Rules of the Financial Conduct Authority), the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Nothing in this announcement shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.

-ends-

This information is provided by RNS

The company news service from the London Stock Exchange

END

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(END) Dow Jones Newswires

June 20, 2017 02:00 ET (06:00 GMT)

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