Wolseley to change name and exit Nordics

Wolseley Group, one of the UK's leading plumbing, heating and building suppliers, has announced it's changing its name to Ferguson and exiting the Nordic region.

In an unexpected announcement, Chief Executive John Martin said “Ferguson now accounts for 84% of group trading profit and we have decided to align the group’s name with our most significant brand in our largest market." The FTSE 100 group will continue to use the Wolseley name in the UK market but the group’s name will be changed to reflect the success of its US subsidiary.

Despite a rise in profits, last year they announced the closure of 80 of their UK branches, with the loss of 800 jobs

It has also now begun the process of leaving the Nordic region, having identified “few synergies with the rest of the group’s plumbing and heating business”, Mr Martin said. This announcement came as Wolseley revealed profits for the six months ended 31st January 2017 declined to £328m, compared to £367m in the previous year.

However, total revenues increased almost 7% on a constant currency basis. Taking into account foreign exchange rates, revenues leaped by almost 25%, rising from £6.8bn to £8.5bn.

The company also announced that Frank Roach, the chief executive of the Ferguson subsidiary, will be retiring and will be succeeded by Kevin Murphy, the company’s chief operating officer for the past 10 years.

“Kevin is an outstanding leader with a strong track record of driving profitable growth and a deep understanding of our industry,” said Mr Martin. “He has the right skills and experience to lead the US business as it continues to execute its successful strategy.”

Source: Insight DIY Team