Wolseley Plc, the world leading plumbers and builders merchant, today said that in H1 it's losses were reduced by closing unprofitable operations in Ireland, Belgium, Czech Republic & Slovakia, with exceptional costs of £255 million, but that even at the operating level it's loss was £207 million (Loss of £381 million H1 last year). Sales were down 15% on last year to £6.331 billion, the full pre-tax is £261 million against £464 million last year.
It cut distribution and other administration costs by £272 million.
Ian Meakins, Group Chief Executive, said
"The results for the first half reflect good progress on cost reductions which were delivered ahead of schedule. Market conditions remain challenging, though we are now seeing stabilisation in many of our markets. Against this backdrop, the Group will continue to focus on an improved service to customers, maintaining market share and gross margins, delivering a good cash performance and maintaining cost discipline."
"The resource allocation work shows us clearly where to prioritise investment in our leading businesses where we have a strong competitive advantage and can generate the best returns."
In the UK market, which now accounts for only 19% of the Group's revenue, sales were down 12% on last year to £1.233 billion and margins were down 1.3% as a result of competitive pressures, but the bottom line was up £13million to £33 million as a result of the cost cutting.
Net debt was cut by £49 million since the start of the financial year, to £910 million.
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