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Wolseley Says Will Explore Strategic Options For Future Of Businesses In France

By RTTNews Staff Writer   ✉  | Published:  | Google News Follow Us  | Join Us
rttnewslogo20mar2024

Wolseley Plc (WOSYY.PK,WOS.L) said its strategy is to focus on businesses where it can establish leading positions in attractive markets and consistently generate good returns for shareholders.

The company noted that in the above context, it decided to explore strategic options for the future of its businesses in France. In the year ended July 31, 2011, the businesses generated revenue of 1.3 billion pounds and employed net assets of around 500 million pounds, including 136 million pounds of goodwill. According to Wolseley, in light of this review, the appropriate carrying value of these assets will be assessed at year-end and this is likely to give rise to a non-cash impairment charge.

Wolseley stated that difficult market conditions in Continental Europe have continued and added that it continues to take appropriate actions to reduce its cost base and, in line with prior guidance, Wolseley had incurred one-off restructuring costs of approximately 20 million pounds since August 1, 2011. It is likely that these costs will be charged to trading profit.

Moreover, according to the company, in Denmark, trading conditions have remained challenging. The company said it will review the carrying value of goodwill and intangible assets of 393 million pounds associated with this business. This is also likely to give rise to a non-cash impairment charge.

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