Builders and plumbers merchant group Wolseley today announced that first-half profits are likely to be higher than analysts expected, with the result that the share price rose 11%.
The company stated that if current trends continue, the group expects trading profit before exceptional items to exceed the current
analysts’ consensus forecast of £326m for the financial year to 31 July 2010.
The better than expected performance is likely to be down to better-than-expected cost efficiencies rather than any marked improvement in the business environment. Wolseley has cut more than 2,000 jobs and closed branches and distribution centres since the downturn began.
Shares rose 161p to £16.10 after the update.
The Group will announce its half year results for the six months ended 31 January 2010 on 22 March 2010.