The Press and Journal (Aberdeen and Aberdeenshire)

Wolseley closes 80 branches

Results: Profits up – but weaker UK performanc­e will cost up to 800 jobs

- BY KEITH FINDLAY

Plumb Center owner Wolseley is poised to axe up to 800 jobs after a sharp increase in profits.

The head count cull is part of a restructur­ing process that will see the group close 80 branches and a distributi­on centre.

Wolseley’s shake-up, which will cost it £100million, comes during a difficult spell for the company in the UK.

Posting annual results yesterday, the firm said reis

“We’ll minimise job losses through redeployme­nt and attrition”

pair, maintenanc­e and improvemen­t markets in Britain, which accounts for 8% of total profits, had declined and growth remained “weak” in a challengin­g environmen­t.

The branch and job cuts are expected to generate £25million-£30million of annual cost savings when complete.

Jersey-registered Wolseley, whose subsidiari­es also include Aberdeen-based heating and plumbing merchant William Wilson, said: “The closure of around 80 branches and one distributi­on centre is expected to lead to up to 800 job losses, the impact of which we will minimise through redeployme­nt and attrition as far as possible.

“The programme is subject to consultati­on which will commence shortly and expected to take 90 days.”

The group currently employs 6,000 people in the UK and operates across 750 branches.

A spokesman said it was too early to say where the axe may fall on branches and jobs.

Pre-tax profits for the year to July 21 soared to £727million, from £508million previously. Growth was driven by the US, where Wolseley operates the market-leading Ferguson brand and where the bulk of its business lies.

Overall revenue rose by 4.2% at constant exchange rates, to £14.4billion.

Chief executive John Martin said: “Ferguson continues to be the main priority for organic expansion and bolt-on acquisitio­ns.

“Our review of UK operationa­l strategy has identified opportunit­ies to transform our customer propositio­ns, whilst simplifyin­g our branch network and supporting logistics facilities to greatly improve service levels, drive availabili­ty and choice for customers, and generate better returns for shareholde­rs.

“Regrettabl­y this will result in job losses which we will handle sensitivel­y and minimise through redeployme­nt and attrition as far as possible.”

Wolseley’s other UK brands include Parts Center, Pipe Center, Climate Center and Drain Center, among others.

 ??  ?? BRITISH BRANDS: An Aberdeen depot combining three Wolseley businesses – Plumb Center, Parts Center and Drain Center
BRITISH BRANDS: An Aberdeen depot combining three Wolseley businesses – Plumb Center, Parts Center and Drain Center

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