Where will this lead to?

Blackrock > 15%.

17 July 2012


Wolseley plc - CONTINENTAL EUROPE
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Wolseley's strategy is to focus on businesses where it can establish leading positions in attractive markets and consistently generate good returns for shareholders. In this context, we have decided to explore strategic options for the future of our businesses in France. In the year ended 31 July 2011 the businesses generated revenue of GBP1.3 billion and employed net assets of approximately GBP500 million, including GBP136 million of goodwill. In light of this review the appropriate carrying value of these assets will be assessed at year-end and this is likely to give rise to a non-cash impairment charge. This announcement is being made in order to enable us to commence consultation with our employees in France. In our Q3 IMS we reported difficult market conditions in Continental Europe and these conditions have continued. We continue to take appropriate actions to reduce our cost base and, in line with previous guidance, we have incurred one-off restructuring costs of approximately GBP20 million since 1 August 2011. As previously stated, it is likely that these costs will be charged to trading profit. In Denmark, where we have strong market positions, trading conditions have remained challenging and we will review the carrying value of goodwill and intangible assets of GBP393 million associated with this business. This is also likely to give rise to a non-cash impairment charge.

New high again this morning @2838p - don't you love a boring share.

Finally closed these and hope to buy back at a lower price - its like parting with an old friend.

Wolseley , the heating and plumbing supplies distributor, will be issuing full-year results on Tuesday, and it's been a bit of a successful recovery story of late. Profits plunged in 2009, and early that year the shares reached a low of 497p. But after dropping further the following year, profits have turned around and the shares have recovered to 2,623p, making them a five-bagger.

Earnings growth of around 13% is expected for the year, but much of the recovery looks to be already in the price, with a forward price-to-earnings (P/E) ratio of 16 looking a bit toppy. And the expected dividend yield of 2% is nothing to retire on. But being so international -- only about a fifth of Wolseley's business is in the UK -- it could provide a good barometer of the West's economic situation.

Deutsche Bank upgrades Wolseley from hold to buy, target price raised from 2,470p to 3,092p.

Final Results

Financial highlights

§ Revenue of the ongoing businesses 5.4% ahead of last year.

§ Trading profit of the ongoing businesses £658 million, 10.4% ahead of last year.

§ Restructuring charges of £17 million (2011: £nil) charged to trading profit.

§ Non-cash goodwill impairment of £353 million relating to acquisitions in 2003 to 2007.

§ Headline earnings per share of 168.4 pence, 17.8% ahead of last year.

§ Strong cash generation with net cash of £45 million, £568 million better than 31 July 2011.

§ Proposed final dividend of 40 pence bringing total for the year to 60 pence, 33.3% ahead.

§ Proposed capital return of £350 million via a special dividend and share consolidation.

Operating and corporate highlights

§ Good growth in USA and Canada, recovery in UK and weakness in Continental Europe.

§ Gross margin in the ongoing business of 27.5%, 0.2% below last year despite significant pricing pressure and 0.1% adverse impact of non-recurring charges.

§ Further gains in productivity and flow through of incremental revenue to trading profit.

§ Trading margin for the ongoing businesses of 5.2%, 0.3% higher than last year.

§ Nine bolt-on acquisitions with annualised revenue of £125 million.

§ Disposals of Build Center, Brossette, Encon, Bathstore and residual stake in Stock Building Supply completed; and Woodcote sold since the year end.

§ Ongoing review of future strategic options in France, as announced in July.

a good little dabble at 2615 ...... a ridiculous plunge by "sellers on the news", but thanks very much guys!

must be the first time i have ever made money on this stock .... i got so fed up getting my timing wrong that i haven't traded it for many many months

You beat me cynic - I bought @2616 and now thinking of closing - what a mad reaction!

on consideration, i think i'll let them run for now as i can't see that there'll be any negative comment from the pundits ..... if the markets start to look a bit soft i may change my mind

Stopped out +100p

i'm still nicely in the money, but serves me right for not selling when much further ahead but going out for the rest of the day

Deutsche Bank reiterates it's Buy TP 3,073.00

1st Quarter Results

First quarter highlights

§ Gross margin of 27.2% in line with the same period last year.

§ Trading profit up 7.6% at £198 million.

§ Continued strong cash generation with net debt of £87 million.

§ Two acquisitions in the USA for total consideration of £80 million.

§ After the end of the period agreed to acquire 22 Burdens branches, subject to OFT approval.

§ Restructuring charges committed to date in Continental Europe of £33 million.

Wolseley is a rare beast -- a FTSE 100 constituent whose share price has galloped. The building materials firm has seen its price grow from a low of £19 back in December last year to £28.42 today -- close to 50%.

Full-year results in October showed an 18% rise in earnings per share, allowing the dividend to be boosted by a third to 60p per share. And then first-quarter results this week showed a 7.6% rise in trading profit, from a 2.1% growth in like-for-like sales -- with net debt almost wiped out.

You'd have done very well to buy Wolseley shares in November. And it's looking increasingly like there's a good long-term future for this "picks and shovels" company, which should do well from the recovering construction industry.

Bought in today for the longer term..hope to double in the next few years!

Proposed Changes to UK Staff Pension Arrangements

Wolseley has started a three-month period of consultation regarding proposed changes to staff pension arrangements in the UK, in light of its desire to provide sustainable and competitive pension arrangements for all of its employees.

The Company is proposing to close the current UK Defined Benefit (DB) Pension Schemes for future accrual on 31 December 2013. The DB pension benefits that employees have already built up will be protected and there will be no changes to the arrangements for retired and deferred members.

The proposals will provide all UK employees with access to a highly competitive pension scheme effective from 1 January 2014 which complies with legislation on auto enrolment which comes into force later this year.

The Company remains committed to meeting its DB pension liabilities and has invested £313 million into the scheme over the past three years including £125 million in January 2013. Wolseley expects no significant change to the overall cost of pensions as a result of this proposal.

Ian Meakins, Chief Executive, Wolseley, commented:

"We want to provide equitable and sustainable pension benefits for all UK employees. Our proposal will provide all staff with competitive pension benefits whilst reducing the impact of financial risk and volatility of the defined benefit scheme on our business in the long-term."

Liberum Capital Buy 3,300.00 3,302.00 3,150.00 3,730.00 Upgrades

WOS should certainly benefit from improving US housing data and also the budget boost given to UK housing

for myself, i have a bad history with this share, so i'm unsure how much of the above is already discounted

Half year results from plumbers’ merchant Wolseley (LON:WOS) should show the company still facing a number of challenges, not least in Europe, where like-for-like revenue growth turned negative in the first quarter of the fiscal year.

Panmure Gordon thinks the key issues in the interim statement will be: Ongoing strength of the North American recovery; trading and provisioning in the European and Nordic territories; the UK market and the impact of recent consolidation.

The City broker forecasts half year underlying earnings (EBITA) of £340mln. Group net debt at the end of the first quarter was £87mln; Panmure Gordon thinks this will rise to £490mln after the company’s special dividend payment, which soaked up £350mln.


http://www.proactiveinvestors.co.uk/companies/market_reports/55095/week-ahead-bellway-wolseley-and-globo-0000.html