Wolseley Registers Advance Profits

After more than two years of turmoil, Wolseley shared the good news that it was achieving better than expected cost efficiencies.

The trading profits of the company are expected to be ahead of the consensus forecast of £326m, as the shares raised 12.5pc to £16.30.

As restructuring costs have grown unexceptionally, Wolseley's pre-exceptional profits have increased.

Andy Brown, an Analyst at Panmure Gordon said, "With cost cutting very much a feature across the sector it is likely that others will have done well also. But trading remains challenging so we do not expect to be upgrading the rest of our forecasts".

In the face of the financial crisis and a crisis in housing markets in the US, the business has slumped and Wolseley has been forced to cut more than 20,000 jobs.

The company which had made a £766m pre-tax loss last year had to raise £1bn from shareholders to reinforce its balance sheet.

Chip Hornsby, Chief Executive, was replaced by Ian Meakins, former Boss of Foreign Exchange group Travelex.