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Third quarter highlights (ongoing businesses) § Revenue increased by 4.7% and like-for-like growth was 3.8%. § Gross margin of 27.7% held at last year's level. § Operating costs were 3.6% higher than last year. § Trading profit of £139 million, 10.3% ahead of last year. § Net debt of £277 million, £314 million better than 30 April 2011. § Completed previously announced sale of Brossette and sold Bathstore for £15 million. § Two small bolt-on acquisitions completed in the third quarter in US and Denmark.
http://www.investegate.co.uk/Article.aspx?id=201205290700152701E
Panmure Gordon reiterated its "sell" recommendation for Wolseley (WOS) with a 1,500p target price. The broker remained concerned over difficult trading conditions in Europe, with poor weather and fears over the future of the Eurozone reducing building activity. However, Panmure noted that the building materials distributor benefited from an improving outlook in the US. The broker added that the shares trade on a prospective earnings multiple of 10.8 times for 2012, a premium to its peer group, while offering a modest dividend yield of 2.7%
On taking up his new position Jensen will also join Wolseley's Executive Committee and will report to the group's Chief Executive Officer, Ian Meakins.
Jensen, like Weirsoe, joined Wolseley as a result of the DT Group acquisition in 2006. He has been in his current role since 2009, and previously held a number of senior management positions in sourcing and supply chain within the Nordic region.
Steen Weirsoe, Chief Executive Officer of the Nordic and Central European operations of Wolseley is to retire at the beginning of August. The building materials supplier said he will be succeeded by Ole Mikael Jensen, who is presently Managing Director for Central Europe.
Sharesave scheme matures. elected to buy and sell holding of 781 shares straigtaway. seen value of shares fall by £3.00 since 1st of May 2012. Where do experts believe they will be given the euro zone influence on the FTSE 100 on the 1st of June?
Oddo initiates buy on Wolseley, target 2,980p.
4th April 2012
Could someone inform me when the ex dividend date is?
Ian Meakins, Chief Executive, commented: "Wolseley has delivered another decent performance, despite challenging economic conditions in Europe, with like-for-like revenue growth of 5 per cent. The underlying gross margin was maintained and our ongoing focus on operational efficiency has delivered further improvements in the trading margin of the ongoing business to 5 per cent. Good cash flow has enabled us to continue to reduce net debt and to invest for future growth. We have completed a number of value-enhancing acquisitions in the US and Nordics and they are being integrated promptly. "Like-for-like growth trends for the Group since the end of the period have been slightly lower than the first half overall with the US a little better and Europe a little weaker. We will continue to pursue operating efficiencies and remain focused on improving customer service, gaining market share and protecting our gross margins. We will continue to invest selectively in the business where we can exploit growth opportunities and generate good returns. "An attractive and sustainable dividend is an important element of shareholder returns and we have raised the interim dividend to 20 pence per share, 33 per cent ahead of last year reflecting our confidence in the business."
Plumbers' merchant Wolseley, no longer drowning in a sea of debt, felt confident enough to ramp up its interim dividend by a third on the back of strong profits growth, though like-for-like sales growth has tapered off a tad in the last couple of months. Revenue in the six months to January 31st rose 3% to £6,841m from £6,629m a year earlier. Like-for-like (LFL) sales were up 5%.
http://www.investegate.co.uk/Article.aspx?id=201203270700191158A
Trade Summary Dream Scenario: Positive fundamental factors such as pricing power and balance sheet strength continue to drive Wolseley shares towards new near term highs. Nightmare Scenario: After an extended positive re-rating since December the 2,500p zone caps the price action for the near term
Key Technicals Shares in Wolseley have maintained a consistent breakout since December above their 200-day moving average now at 1,900p. The near term price action is governed by a rising trend channel on the daily chart from August, so while support for the shares comes in at or just below 2,400p, we expect upside towards the 2011 resistance line projection currently towards 2,550p.
On December 7th, the day after its Q1 update broker Credit Suisse delivered a positive appraisal of plumbing materials group Wolseley. "Wolseley remains a key outperform for us following the heating and plumbing giant's first quarter results yesterday." Group like-for-like (LFL) sales growth quickened from 3% in the fourth quarter of last year to 5%. Credit Suisse highlights the US as the key strength of the three-month period, as LFL sales grew 10% in the region. Margins continued to improve (gross margin grew by 10 basis points year-on-year to 27.1%) showing that Wolseley continues to succeed in the challenge of offsetting cost inflation according to the broker. The broker gives four main reasons why it continues to see a positive investment case in the stock: "pricing power; market share gain; balance sheet strength (and the expansion opportunity that offers); and end market exposures". Credit Suisse really did provide Wolseley with a ringing endorsement of its credentials following the Q1 update from the plumbing materials group in December. With the broker clearly rating Wolseley a key performer on so many metrics, the subsequent share price rise is of little surprise, and the Galvan Research team expect the shares to continue rising to test new 52-week highs. Given this backdrop, the latest dip in the share price provides an ideal ongoing momentum buy opportunity
ING downgrades Wolseley from buy to hold, target price raised from 2000p to 2150p.
Panmure Gordon has maintained its sell rating and 1,500p target price for heating and plumbing giant Wolseley, driven by a combination of "high relative valuation, need for operational improvement and strong recent relative share price performance." Wolseley's first quarter results were welcomed by the market this morning, with shares rising 2-3% in early trade. However, Panmure notes that the trading outlook is expected to get tougher, "which keeps a lid on forecast changes". "We also have concerns about the likely strength of the US residential and commercial recovery. Recent disposals show that management are doing a good job tidying up the portfolio. For now our stock preference remains elsewhere in the sector."
Commenting on the trading outlook, Ian Meakins, Chief Executive said: "Wolseley has continued to grow well, with strong growth in the USA offset by lower growth in some of our European businesses. Given continuing macroeconomic uncertainty, trading conditions may get tougher in the coming months. We will remain vigilant on costs and continue to drive performance improvements, strong cash conversion and better customer service. Our balance sheet is strong and the Group is well positioned to continue to invest selectively where we can generate good returns."
First quarter highlights § Like-for-like revenue growth of 5%. § Gross margin of 27.1% was 0.1% ahead of last year. § Trading profit was 16% ahead at £185 million. § Adjusted net debt of £587 million, £118 million lower than 31 July 2011. § Sold Encon in the quarter, and completed the disposals of Build Center and our minority stake in Stock Building Supply in November. § Completed two acquisitions in the quarter and one in November, in the USA, with aggregate annual revenue of £88 million for consideration of £29 million.
http://www.investegate.co.uk/Article.aspx?id=201112060700273978T
Wolseley: RBS cuts target to 2,378p from 2,420p, stays at buy.
Wolseley (WOS) reported a pre-tax profit of 391 million pounds for the year ended 31st July, compared to a 328 million pound loss last year, with revenue growth of 3% to 13.6 billion pounds. The heating and plumbing group made five acquisitions in the USA and Denmark, while disposing of a number of non-core businesses. The company noted a 9% increase in like-for-like sales in its largest market, the USA, with improved margins as it put greater emphasis on showrooms, counter sales and private label products. Wolseley shares dropped 31p to 1,505p
Exane BNP Paribas upgrades Wolseley from neutral to outperform, target price cut from 2,100p to 1,685p
Jefferies International upgrades Wolseley from hold to buy, target price from 2120p to 2190p.