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Wolseley operates in six geographic regions – the United States, Canada, the Nordic region, the United Kingdom, Central Europe and France.

The financial results in this section relate to ongoing businesses only.

Regions

USA

  • Leading distributor of plumbing and heating products in North America
  • Strong business model with large scale distribution centre network and national branch network
  • Trading margin of 7.3% exceeded previous peak of 7.0%
  • Strong customer service and employee engagement scores

Key brands

Ferguson logo Build.com logo

6,785£m
Revenue (53% of Group)

492£m
Trading profit

7.3%
Trading margin

6 
Business units

1,348 
Branches

18,969 
Employees

5-year performance £m

Graphic: Five year performance bar chart (£m): Revenue: 2008: 5,613, 2009: 5,820, 2010: 5,174, 2011: 5,500, 2012: 6,168. Trading profit: 2008: 389, 2009: 309, 2010: 239, 2011: 314,  2012: 389

Quarterly like-for-like revenue growth

Graphic: Quarterly like-for-like growth bar chart

Regional KPIs

  2013 2012
Like-for-like revenue growth +8.2% +8.4%
Trading margin 7.3% 6.3%

 

Competitive environment

Ferguson has no direct competitor that operates across all its markets, and each business unit has its own competitors. These range from large national players, including professional sales from the national home improvement chains, to single branch operations. The market remains fragmented with a large number of small and regional distributors making up the majority of the market. Ferguson has continued to gain market share in the year, growing sales significantly ahead of the market.

Revenue by market sector

Graphic: Revenue by market driver pie chart: Residential new construction: 14%, Residential RMI: 27%, Non-residential new construction: 14%, Non-residential RMI: 30%, Civil infrastructure: 15%

Business unit portfolio and profile

In the US we operate six business units. Ferguson is the primary operating brand although a number of other brands have been retained to service specific markets. The business operates in all 50 states and is served by 11 distribution centres across the country that provide next day product availability, a key competitive advantage. Ferguson predominantly serves the RMI markets with relatively low exposure to the residential new construction market.

 
  • Blended Branches

    The Ferguson Blended Branches business sells to customers across the residential, commercial and industrial sectors for new construction and RMI projects through its national branch network. In smaller markets that may not justify a standalone presence for heating, ventilation and air conditioning ("HVAC") and waterworks, a blended location can also provide the products and services for these customers.

    1 
    Market position

    62%
    contribution to 2012/13 revenue

  • Waterworks

    The waterworks business distributes pipes, valves, hydrants, fittings and meters to residential, commercial and municipal contractors. The business is diversifying its customer base into private water companies and treatment plants, and expanding its product range into new areas such as metering technologies.

    2 
    Market position

    15%
    contribution to 2012/13 revenue

  • HVAC

    The HVAC business distributes heating, ventilation, air conditioning and refrigeration equipment to specialist contractors, predominantly in the residential and commercial sectors. Branded dealerships of high quality equipment are an important feature of this market. Most revenue is generated by providing equipment and parts for the repair and replacement market.

    4 
    Market position

    7%
    contribution to 2012/13 revenue

  • Industrial

    The Industrial business distributes pipes, valves and fittings, including specialty high-density polyethylene pipes, to industrial customers across all sectors including oil and gas, mining and power generation. It is a project driven business that has historically performed strongly over the economic cycle. The Industrial business also offers maintenance, repair and operations services (MRO) and off-site integrated supply with centralised procurement, storeroom and commodity management.

    3 
    Market position

    11%
    contribution to 2012/13 revenue

  • Other business units

    The other business units include:

    • Fire and Fabrication: Supplies fire protection systems to commercial contractors.
    • The B2C business supplies to consumers via websites using the product range and distribution network of the Blended Branches business. This is a particularly fast growing area of the US business.
    • These business units have synergies with the distribution and branch network of the larger units, and frequently share vendors.

    5%
    contribution to 2012/13 revenue

Regional profile PDF

Download the latest USA regional profile

 
 

Figures are for the year ended 31 July 2013