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froth coming off now
I sold recently too, only to see the rise continue. Surprised really, good company and it's looking to cut costs etc but starting to look frothy here.
Sold some 4204. 1K profit nice
out today at 4197, 500 profit ... happy with that
if Greece stays in the euro, otherwise back down
excellent couple of days back up to 4200+ ?
...
Watch this share price fly today.
Wolseley: American dream: A snip at 18 times earnings, and it makes three-quarters of its profits in the U.S. Tuesday’s first-half numbers showed that those bullish economic indicators are finding their way into revenues and profits. The former rose 15% in the U.S., while the latter rose 23%. Wolseley’s U.S. operating margin sits at a record 7.9%. The problem is that you would also have exposure to the other quarter of profits, which mostly come from Europe. Like-for-like sales are inching ahead in the region, but profits are falling. In the U.K. — which accounts for 15% of revenues and is, in theory, in a stronger economic condition than the continent — profits fell by a tenth due partly to a weak market for heating. Elsewhere, problems in the Nordic market pushed Wolseley into making a £245 million goodwill write-down on a 2006 acquisition. That forced the group as a whole into a net loss for the period. Wolseley’s European operation is proving to be a small, but heavy, item — like a brick. So to buy into Wolseley is to assume that Home Depot and Lowe’s cannot go much further, and that the European business will eventually perk up and allow the rating to rise towards 20. Both are possible. But the economic data that would justify that decision look far from certain.
bouncing back from earlier lows today
Builders and plumbers merchant Wolseley said it is on track for the full year after a double-digit increase in underlying profits in the first half, helped by record trading margins in the States and strong growth in e-commerce. Adjusted trading profits rose 11.1% year-on-year to £390m in the six months to 31 January. However, reported pre-tax profit sank 67% to £103m after a £245m impairment relating to acquired intangibles in the Nordics arising from the acquisition of DT Group back in 2006.
will we see £40.00
Wolseley's management has shown its ability to ride through the post-crash downturn. Trading in the US is growing nicely and, while mainland Europe remains tough, the region now forms a relatively modest part of group revenue. The dividend was increased by 25 per cent last year, but is still more than twice covered by after-tax earnings, and offers a decent yield. Uncertainties remain, but the group is taking market share and its US exposure is clearly a positive factor at the moment
Trading elsewhere is more or less treading water, but showing early signs of recovery. Like-for-like revenue in the UK, which makes up around 15 per cent of group revenue, grew by 0.5 per cent in the first quarter to October, while the acquisition last year of Fusion Provida, a supplier of utility infrastructure products, added a further 4.4 per cent to revenue growth. True, gross margins were down a little as a result of competitive pricing pressures, but operating costs were kept under control, and quarterly trading profits were just £1m down from a year earlier at £24m. Around 15 per cent of group revenue comes from the Nordic region, where slower trading in Finland was offset by growth in Denmark and Sweden, leaving like-for-like revenue growth of just under 2 per cent. However, margins slipped in the wake of the acquisition of Finnish timber and materials group Puukeskus and, although trading profits in the quarter slipped by £3m, two-thirds of this was due to unfavourable currency movements. Canada provides just 6 per cent of total revenue, and sales there grew by 1.7 per cent, although trading profits were flat on constant exchange rates. Group finances are in reasonable shape, and while net debt rose from £711m in July to £858m in October, this included buying back £120m of shares as part of a £250m share buyback programme announced in September last year. The group also has credit facilities of £2.2bn. Despite the tough trading climate in Europe, Wolseley has still managed to show a consistent improvement in operational metrics. Return on capital employed has nearly doubled in the past five years to 30.7 per cent, while trading margins have improved from 3.4 per cent in 2010 to 5.8 per cent in 2014.
Trading in Europe remains a hard slog, with the eurozone seemingly incapable of throwing off the threat of recession. Like-for-like revenue in the first quarter fell by 9.3 per cent, and gross margins were down too. However, steps have been taken to counter the effects of the weak economy through a reduction in operating costs. Even so, first-quarter trading profits were more than halved to £6m; that includes a £1m loss because of euro weakness. This has dented sentiment, but it's worth pointing out that revenue from central Europe and France only accounted for 6 per cent of the first-quarter total, and some assets, including the wood solutions business in France, are now up for sale.
Shares in Wolseley (WOS) may have risen sharply in the fourth quarter of last year, but there is still a long way to go before the heating and plumbing products giant repairs the damage it suffered during the economic downturn. From a peak in 2006, the financial crash drove the shares down by an astonishing 90 per cent to a trough in early 2009. Happily, since then the shares have shown a steady recovery, and the group is now ideally poised to take advantage of an upturn in activity in the US. The better tone here is crucial because Wolseley derives more than half its sales from the US and around three-quarters of group trading profits. Most of the income is generated from products in the repair, maintenance and improvement (RMI) market, and demand here is brisk. Growth in the new residential market remains more modest, though, while the commercial segment and a general increase in market share helped to push like-for-like revenue in the three months to the end of October up by 12.4 per cent. Three bolt-on acquisitions contributed an additional 3 per cent of revenue growth, and while continued investment in adopting new business models pushed up operating costs by 11 per cent, gross margins were still up for the 2014 financial year. After taking account of a £5m adverse currency movement, trading profits in the first quarter rose by 23 per cent to £174m. It's also worth noting that energy costs have been significantly lowered as a result of the recent downturn in commodity prices.
Positive Points: Five bolt-on acquisitions for total consideration of approximately £119 million were undertaken in the period. Management said it would continue to invest in technology and new business models to deliver better customer service and gain profitable market share. Wolseley previously returned £300 million to shareholders, in the form of a special dividend, after seeing signs of improving confidence in the US and its home market. A progressive dividend policy is being pursued by the board.
Negative Points: Movements in foreign exchange rates can impact negatively, in particular the $/£ rate. They adversely impacted on trading profits by £12 million in the quarter. Wolseley continues to face more challenging markets in Continental Europe still recovering from the economic crisis. Competition across all the group's markets remains intense. Group net debt as at 30 April was £914 million (30 April 2013: £694 million).
Financial Highlights: Wolseley reported a 9.1% improvement in trading profit from ongoing businesses year-on-year to £155 million. Revenues for ongoing businesses fell by 0.8% but rose 5.1% on a comparable basis (which strips out currency movements) to £3.05 billion. Foreign exchange movements adversely impacted trading profit by £12 million. Net debt as at 30 April was £914 million (30 April 2013: £694 million).
Third quarter interim management statement: The specialist trade distributor said it expects like-for-like revenue to grow 4% in the next six months, after posting a 5.1% rise in revenues supported by robust trading in its US and Nordic markets. This was despite the adverse impact of foreign exchange movements of £12 million in the quarter. Nevertheless the numbers were well received by the market with the share price up over 2.8% in opening trade. The company said like-for-like revenue was up 9.0% in the US and 7.5% in the Nordic region, which more than offset declines in Canada, the UK, France and Central Europe. Group like-for-like revenue growth was 5.1%. Wolseley added that cash generation was strong, although net debt stood at £914 million at the end of April, up from £694 million a year earlier, after a cash outflow of £90 million for acquisitions in the period. The company made five bolt-on acquisitions for a total consideration of around £119 million
Very good news today
Get in touch if you see this
Bonus payout of dividends. Housing market growth. I think this share has medium- to long term potential all over it
cheers , and best of luck to all of us . a shell is not a total wipeout , but as close as you can get . the sp will plummet until further positive news . could be a very long wait on this one . will keep my eye on here . atb
Yes still in there for about £9k but have done well on lots of other deals. Not meeting for just over a week but if I hear more will keep you up to date.