Yahoo Finance Wolseley to rebrand as Ferguson as it departs from Scandinavia
Plumbing and heating supplier Wolseley is changing its name to Ferguson and stepping away from its operations in the Nordic regions.
The FTSE 100 group will continue to use the Wolseley name in the UK market but the group’s name will be changed to reflect the success of its US subsidiary Ferguson.
“Ferguson now accounts for 84pc of group trading profit and we have decided to align the group’s name with our most significant brand in our largest market,” said chief executive John Martin.
The company last year said it would close 80 UK branches and cut 800 jobs, despite a rise in sales and profits, while it continued with plans to restructure its UK and European business following a decline in like-for-like revenues in both regions.
It has now begun the process of leaving the Nordic region, having identified “few synergies with the rest of the group’s plumbing and heating business”, Mr Martin said.
It comes as Wolseley revealed that profits for the six months ended January 31 this year fell to £328m, compared to £367m in the previous year.
However, revenues were up nearly 7pc on a constant currency basis. Changes in foreign exchange rates saw overall revenues increase by nearly 25pc, rising from £6.8bn to £8.5bn.
The company also announced that Frank Roach, the chief executive of the Ferguson subsidiary, will be retiring.
He will be succeeded by Kevin Murphy, the company’s chief operating officer for the past 10 years.
“Kevin is an outstanding leader with a strong track record of driving profitable growth and a deep understanding of our industry,” said Mr Martin. “He has the right skills and experience to lead the US business as it continues to execute its successful strategy.”
Wolseley shares jumped 7pc in early trade.
