Wolseley to dispose of its underperforming units

The world's largest plumbing distributor, Wolseley, is considering disposing of its underperforming units in a bid to run less and bigger businesses in the long-term.

The 19 out of 41 businesses that have been identified as underperforming or too small are to be improved upon before selling them or reclassifying them as core.

The businesses, which include Build Centre, the UK-based chain of builders' merchants, account for 19% of sales, and only 5% of trading profit.

Sales of Wolseley's range of building products, including boilers, pipes and radiators, dived in North America and Europe during the building industry downturn.

Operating losses of £207 million were recorded for the six months to January 31, however market conditions are now showing definite signs of stabilising.

Wolseley has already sold its branch network in Ireland and some outlets in Northern Ireland in January.

New chief executive Mr Meakins, who was brought in last July to turn Wolseley around, said of the plans: "Over time, the group's intention is to operate fewer, larger, related businesses in core geographies."

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