The Press and Journal (Inverness, Highlands, and Islands)
Wolseley closes 80 branches
Profits up – but weaker UK performance will cost up to 800 jobs
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 UKand 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, andgeneratebetter 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.