(RTTNews) - Plumbing and heating products supplier Wolseley Plc (WOS.L: News ) reported Monday a loss for fiscal 2009, that mainly reflected increased impairment charges as well as higher exceptional costs. The company noted that it experienced a significant fall in activity levels during the year, as severe recession and weakening consumer sentiment had accelerated the decline in construction industry. Looking ahead, Wolseley said that in the short term, market conditions will remain challenging due to tight credit conditions, high levels of foreclosures and rising unemployment rates.

The U.K.-based company's loss before tax for the year was GBP 766 million compared to a profit of GBP 399 million in the previous year. Profit before tax, exceptional items and amortization and impairment of acquired intangibles declined by 53.6% to GBP 293 million from GBP 631 million last year.

Full-year results reflected amortisation and impairment of acquired intangibles of GBP 595 million, much higher than GBP 162 million last year, and exceptional items of GBP 458 million compared to just GBP 70 million in the prior-year.

Loss attributable to equity holders were GBP 1.17 billion or 558 pence per share, in comparison with a profit of GBP 74 million or 40.9 pence per share in the earlier year. Loss for the year attributable to equity shareholders before exceptional items, was GBP 639 million, compared to a profit of GBP 123 million a year ago.

The company said it has restated the prior-year results to present Stock Building Supply as a discontinued operation.

Loss from continuing operations was GBP 732 million or 348.2 pence per share, in comparison with a profit of GBP 242 million or 133.8 pence per share in the previous year. Earnings per share from continuing operations before exceptional items and the amortization and impairment of acquired intangibles were 95.5 pence, significantly down from 239.9 pence in 2008.

During the year, the company sold its Stock Building Supply Holdings LLC, which comprised the majority of its US Building Materials segment, and two businesses in the Central and Eastern Europe segment, Mart Kft and Wasco-Anbuma, NV Belgium and two non-core business in France. The company said it has retained a minority interest in the Stock Building Supply business, which has been recorded as an investment in an associate. Loss from discontinued operations widened to GBP 441 million from GBP 168 million last year.
The company had a full year impairment charge of GBP 490 million, which include GBP 458 million goodwill and intangible impairment charge relating to DT Group, Wolseley UK and Benelux recorded in the first half and a further impairment at Wolseley UK in the second half of GBP 21 million. Exceptional items recorded in operating profit amounted to GBP 458 million, which comprised of GBP 346 million of restructuring costs, a GBP 31 million one-off provision at North America Loan Services, a GBP 40 million loss on business disposals and a GBP 41 million impairment of software. The group's operating loss was GBP 606 million, compared to operating profit of GBP 555 million last year.

Revenues for the year decreased 2.5% to GBP 14.44 billion from GBP 14.81 billion in the preceding year. In constant currency, the decline was 16.3%. The company noted that its business is not highly seasonal, but revenue and trading profit are normally slightly higher in the second half.

According to the company, all reportable segments derive their revenue from a single business activity, the distribution and supply of construction materials and services.

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