Wolseley announces 19% profit growth

Plumbing and heating products distributor Wolseley posted underlying year profits of £817 million (€1

Plumbing and heating products distributor Wolseley posted underlying year profits of £817 million (€1.217 billion) before tax and amortisation for the year to end-July.

Revenue rose 23 per cent to £14.2 billion, exceeding forecasts, and Wolseley raised its total dividend by 11.4 per cent to 29.40 pence a share.

The company's profits were an increase of 19 per cent on the previous year.

Wolseley said it expects continued growth in the US industrial and commercial market as well as home repairs maintenance would more than outweigh a softening in the new residential market there.

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Wolseley recently bought four Dublin-based insulation companies to expand its foothold in what is a significantly growing area of the building materials market.

The Reading-based company spent €32.7 million on three acquisitions, one of which was the group of Irish companies formerly owned by Rhodes Securities.

The four Irish groups - Morris Insulation, Acoustic and Thermal Insulation, Customised Insulation Manufacturers, and Construction Insulation Distributors - are all based in Dublin and are among the leading distributors of insulation materials in the Republic.