Wolselely’s profits down

Source: Stock Market Digital

Date :24/09/2007 09:28:51

Wolselely PLC has reported a 17.6 percent fall in their annual profits.

Pre-tax profits for the year to 31 July fell to £634 million ($1.29bn), down from £769 million for the previous 12 months.

The company based in Reading are the world’s biggest distributor of heating and plumbing equipment.

In a statement made by Chief Executive Chip Hornsby, the group said that sales across a number of the group's businesses had suffered as a result of "uncertainty" in the US sub-prime mortgage market, currently mired in its worst recession for 16 years.

They also believe that the slump will continue.

“There are no signs yet of any upturn in the US housing market, and the repairs, maintenance and improvement (RMI) market is now beginning to soften."

The company has said however, that it had seen good growth in its European business where the "underlying fundamentals of the construction markets remain sound".

Helped by its acquisitions last year such as the purchase of DT Group in the Nordic region, revenues in the area jumped 46.8 percent to £7.56 billion.

September 24 2007

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