Wolseley reports £150m profit

Builders' merchant and distributor Wolseley has reported pre-tax profits of £150 million - a figure down by £480 million on last year.

Builders' merchant and distributor Wolseley has reported pre-tax profits of £150 million - a figure down by £480 million on last year.

Although turnover had increased year-on-year from £16 billion to £17 billion, exceptional costs and "tough markets" across the globe contributed to lower profits for the period ending July 31st 2008.

Chip Hornsby, chief executive, told Contract Journal: "The results for Wolseley UK reflect tougher trading conditions in Ireland throughout the period combined with an increasingly difficult UK housing market, as the year progressed.

"New housing starts in the UK slowed in the final quarter in response to the lower availability and increased cost of mortgage financing… [although] government expenditure on social housing, health and education remained positive."

Throughout the year Wolseley cut over 7,000 jobs and that figure has now reached almost 8,000.

While the profit margin has shrunk dramatically it cannot be said that negative figures weren't expected, as the year to July 31st 2008 existed almost solely in the credit crunch.

It is thought that since the collapse of Lehman Brothers the UK housing and building markets will continue to struggle as UK banks once again enter into a phase of conservative lending.