Plumber chops 800 jobs as UK profits fall 18pc

WOLSELEY is to axe 800 jobs as bosses struggle to get the uK business back on track.

The plumbing and heating group, which owns Plumb Center, Drain Center and Climate Center, said it will close 80 branches and a warehouse in Worcester.

The shake-up will cost the company £100m and comes after years of disappointing results in Britain where it faces stiff competition from rivals such as Travis Perkins. ‘regrettably this will result in job losses,’ said chief executive John Martin.

Wolseley, which has a big business in the united States, reported a 4.2pc rise in annual revenues to £14.4bn. Profits rose 1.6pc to a record £917m.

But the figures were driven by a strong performance in the uS, where profits rose 6.3pc to £775m. By contrast, uK profits fell 17.8pc to £74m while revenues fell in every quarter of the year, including by 2.1pc in the final three months.

The group employs 6,000 people in the uK and has 750 branches and five large distribution warehouses including the one in Worcester which is set to close in 2018. The company said business in the uK ‘has been very challenging for some time’.

Wolseley shares fell 1.3pc or 56p to 4244p. The slump came despite the company raising its dividend for the year from 90.75p a share to 100p a share.

Travis Perkins fell 1.2pc or 18p to 1500p.

Chris Beauchamp, chief market analyst at City trading firm IG, said: ‘Wolseley has sprung a leak.’

But Mike van Dulken, head of research at Accendo Markets, said the failure of the company to return extra cash to shareholders through a special dividend or share buyback, was the main reason for the share price slide.