Plumbers' merchant Wolseley, no longer drowning in a sea of debt, felt confident enough to ramp up its interim dividend by a third on the back of strong profits growth, though like-for-like sales growth has tapered off a tad in the last couple of months.
Revenue in the six months to January 31st rose 3% to £6,841m from £6,629m a year earlier. Like-for-like (LFL) sales were up 5%.
Underlying profit before tax jumped 28% to £250m from £195m at the interim stage last year. Charles Stanley had forecast profit before tax of £255m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The interim dividend pay-out, at 20p, is much more generous than the 18p Charles Stanley had been expecting.
Adjusted net debt at £529m was down £404m on the end of January 2011 level. The group said debt will be further reduced when it offloads its Brossette division in the near future.
"Like-for-like growth trends for the group since the end of the period have been slightly lower than the first half overall with the US a little better and Europe a little weaker," revealed Ian Meakins, Wolseley's Chief Executive.
jh
-
Can I shield my ISAs from inheritance tax?Many investors and savers will be wondering if there’s anything they can do to protect their ISAs from inheritance tax, especially as pensions will become liable for the levy from April 2027. We reveal the options available to ISA customers
-
What is the average salary by age – and how do you compare?Are you making more than your peers? We look at the average salary by age to see how much the typical Brit earns at different stages of their life
