Wolseley on the US buying trail
AMERICA'S housing boom and British Government spending on homes and hospitals is keeping profits bubbling at Wolseley, the world's largest plumbing and heating pipe supplier.
The group is still on the hunt for acquisitions in the US and Europe after losing out last year in the £950m sale of building supplies retailer Wickes.
Finance director Steve Webster said: 'We could spend many hundreds of millions. Something of that [Wickes] size would not be a problem.'
Wolseley spent £217m on bolt-on acquisitions in its first half to 31 January. After a 10% surge in sales and 25% spurt in profits at the half-year mark, Wolseley said further progress was expected in the second half but a 'lower rate of growth' due to the absence of the significant commodity price inflation. Group pre-tax profits rose 25.5% to £308m on sales up 10.4% to £5.33bn.
Chief executive Charlie Banks said overall market conditions in North America and Britain 'are expected to remain favourable for the remainder of this financial year'.
In the US, sales grew 10% from £1.8bn to £2bn and trading profits rose 31.3% to £140m. The US business now accounts for about 55% of group sales.
On the UK business, Banks said: 'We are seeing good benefit from the Government spend on social housing and other investments in infrastructure projects like schools and hospitals.'
