Free Essay

Wolseley Plc

In:

Submitted By Chief
Words 712
Pages 3
Our businesses: Regions

UK l UK portfolio focused on strongest businesses capable of market leadership Investment in organic growth initiatives, including substantial investment in the online B2B platform

Key brands

l

2,404 £m
7

109 £m
Trading profit

4.5 %

Revenue (18% of Group)

Trading margin

1,059

6,670
Ongoing employees*

Ongoing business units*

Ongoing branches*

* Excludes Build Center : 151 branches, 1,540 employees (disposed November 2011).

5­year performance £m

Quarterly like­for­like revenue growth

Regional KPIs 2011 2010 Like­for­like revenue growth +/­

3%

­

+3%

Trading margin 4.5% 3.7% +0.8%

Competitive environment
The UK market is more consolidated than many of the other markets in which the Group operates, with a few large national players. Significant competition is provided by numerous small local businesses. Plumb Center and Parts Center have historically been market leaders in the UK plumbing and heating distribution market. However, the recent merger of two businesses has created a competitor of a similar size. Build Center holds the number four position in the UK market. The planned disposal is in line with Wolseley’s strategy of focusing resources on its market leading businesses**.
** 4 November 2011 Wolseley announced sale of business and assets of Build Center to Saint Gobain

Revenue by market driver

Wolseley plc Registered in Jersey, company no. 106605

Page 1 of 3

Our businesses: Regions

Business unit portfolio and profile
During the year ended 31 July 2011, Brandon Hire and Electric Center were disposed of, in line with the Group’s strategy of focusing on businesses with significant scale and leading market positions. In July, the Group announced an agreement, subject to competition authority clearance, to dispose of Build Center, its building materials distribution business**. The UK management team is now in a strong position to focus on its core, strong businesses with market leading positions. The majority of the UK’s revenue is generated by the RMI (Repair, Maintenance, Improvement) market. The business has particularly high exposure to public sector work, which accounts for around 25 per cent of revenue.
** 4 November 2011 Wolseley announced sale of business and assets of Build Center to Saint Gobain

Plumb Center and Parts Center Plumb Center and Parts Center are leading distributors of plumbing and heating products. The businesses operate through a national branch network and can deliver superior fill rates and a wide range of products through their distribution centres. The businesses also supply a wide range of spares and replacements. Efficiencies arise from purchasing volumes, from opportunities to cross­sell and to share sites. The businesses have continued to deliver strong financial performance in a tough trading environment and continue to look for opportunities to improve customer service and grow sales. During the year Plumb Center launched its online Trade Superstore, allowing customers to order over 40,000 products online. Pipe Center and Climate Center Pipe Center and Climate Center distribute pipes, valves, fittings, air conditioning and refrigeration products. The business has a sound track record of profitability, and volumes are particularly dependent on non­residential new build projects.

2

Market position

43 %

contribution to 2010/11 revenue

2

Market position

10 %

contribution to 2010/11 revenue

Wolseley plc Registered in Jersey, company no. 106605

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Our businesses: Regions

Smaller business units The smaller UK business units include: l l

19 %

Drain Center, a specialist in above­ground drainage. William Wilson, which distributes plumbing and heating products in Scotland Integrated services, outsourced inventory management and procurement services for maintenance activities on a long­term contract basis, mainly to public institutions for example housing associations. Bathstore, a retail bathroom specialist, whose product range includes baths, basins, showers, toilets, taps and bathroom furniture. BCG, which supplies kitchens, bathrooms and associated fittings to other builders merchants and to retailers.

Other contribution to 2010/11 revenue.

l

l

l

Disposals Disposals in the year ended 31 July 2011 and subsequently include Build Center, Brandon Hire, Electric Center and Encon.

6%

Disposals contribution to 2010/11 revenue

8%

Encon contribution to 2010/11 revenue (Disposal completed October 2011)

14 %

Build Center contribution to 2010/11 revenue (Disposal completed 4 November 2011)

Figures are for the year ended 31 July 2011

Wolseley plc Registered in Jersey, company no. 106605

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