Market strengths - Wolseley is the UK’s leading distributor of heating and plumbing products to the professional market. It is also a major supplier of building materials to the heavyside and commercial and industrial markets. Despite the economic downturn in the UK, Wolseley UK continues to perform strongly in the plumbing and heating businesses where it has market strength. Its extensive branch network facilitates nationwide coverage and dedicated customer service. Wolseley UK has a long history of serving the construction industry, with many of the Wolseley ‘Centers’ brands (such as Plumb Center and Parts Center) being leading brands in the sectors of the industry in which they operate. Wolseley UK offers a broad product range representing most major suppliers, and includes a number of successful own brand programmes. Wolseley operates its own advanced distribution network with recent investment in modern Distribution Centres and a fleet of over 2,000 commercial vehicles. This supply chain expertise allows customers to benefit from same day, and next day delivery.
Market opportunity - Within Wolseley UK, we will focus on the current portfolio of businesses, where it has critical mass and market strength across several trading brands, while reducing overcapacity in the supply chain. In addition, there are opportunities to reduce costs and to generate further process efficiency by restructuring the business, including disposal of non-core operations when appropriate, optimising the current branch footprint and making the best use of its distribution centre infrastructure. Once the business has been restructured and the portfolio refined, we expect to see opportunities for attractive returns, organic growth and further industry consolidation when appropriate market conditions return. Until this restructuring is completed, no further capital will be allocated for the expansion of the business other than maintenance capital expenditure.
More information about our UK business.