Steve Webster - Chief Financial Officer: "We have made good progress on improving working capital efficiency, and the focus on cost reduction and cash flow enhancement will continue."Introduction
Purpose
This Performance review has been prepared solely to provide additional information to existing and potential shareholders and other interested parties.
Company overview and performance monitoring
Company overview
Wolseley’s business is the distribution of construction materials and the provision of related services primarily to a specialist market of professional contractors.
Operations
Europe
The European Division continues to develop under four geographic areas (‘clusters’) – UK and Ireland, France, the Nordic region and Central and Eastern Eurpoe ('C&EE').
Operations
North America
The Group’s activities in North America centre on two main market areas – plumbing and heating distribution, which are served by Ferguson and Wolseley Canada, and building materials distribution which is served by stock.
Risk management
In any business, there are a number of risks and uncertainties which could have an impact on its long-term performance.
Financial review
Revenue and operating profit
Group revenue increased by 2.0 per cent from £16,221 million to £16,549 million.
Other financial matters
Financial risk management
The Group is exposed to market risks arising from its international operations, and the financial instruments which fund them.