Results round-up

Plumbing and heating products group Wolseley stressed the resilience of its first-half performance, lifting the dividend 10% as it rode out mixed market conditions and sustained deflationary headwinds in the USA, UK and Europe.

Market conditions remain mixed but after a low point in November, like-for-like revenue growth over the subsequent three month period to 29 February 2016 improved to 3.2% for the group and 5.7% in the USA.

While the residential and commercial building markets that account for 70% of US revenue have held up well, industrial markets have been tough due to lower oil prices and the impact of the strong dollar on US domestic manufacturing.

In the UK, the repairs, maintenance and improvement (RMI) and social housing markets were also challenging, which has seen management step up cost-control initiatives, with £15m of restructuring spend committed for the second half.

UK profits were the worst performing in the period, falling 21%, ahead of Canada, which was down 17%.

In the six months to 31 January revenue from the ongoing businesses reached £6.8bn, which was 5.9% ahead of the same period a year ago and 2.7% ahead on a like-for-like basis.

Gross margins were widened to 28.3% from 27.9% a year ago, with trading profits up 5.1% to £410m.

An interim dividend of 33.28p per share was declared, an increase of 10.0%, after earnings per share rose 6.4% to 110.2p thanks to the growth in trading profit and the reduction in share count as a result of the buyback.

Revenue and earnings were up thanks to strong demand for the luxury wares of Jimmy Choo in 2015, particularly in Asia and Japan, with the firm reporting revenue growth of 7.2% at constant currencies on Tuesday.

The FTSE 250 company’s consolidated net income increased £30.2m into the positive figures, reaching £19.4m, while adjusted EBITDA grew 1.5% to £51m.

Basic and diluted earnings per share grew to 5.1p during the calendar year, from an 11.6p loss per share in 2014.

Jimmy Choo’s board cited strong performance in Asia, and opened 13 new directly operated stores during the period. It also converted three franchise stores to directly operated outlets in Singapore and Malaysia.

A new store concept was launched in 2015, and by year-end 30% of its directly operated estate had been converted to the concept.

"Jimmy Choo made excellent progress in 2015, delivering sustained renovation of the retail portfolio whilst continually evolving the product mix and meeting development targets,” said CEO Pierre Denis.