British plumbing and heating supplies company Wolseley said that its half-year profit would be around two-thirds lower than last year and that its debt had widened due to adverse currency movements.
Wolseley owns the plumbing, heating and builders supply stores Heat Merchants, Tubs and Tiles and Brooks in Ireland.
In a trading update for the five months to the end of December, Wolseley said pre-tax profit was down around 66% year-on-year and that its net debt had increased 22% to £33 billion sterling since last summer due to recent adverse movements in sterling against the euro.
The company, which has 48% of its debt denominated in euro, said it took a £557m hit on currency movements during the period but expects to lower its debt position by the half-year due to an expected working capital inflow.
The building supplies group, which has been battered by the downturn in the Irish and UK housing markets, said that until conditions stabilise it is unlikely to see any upturn in its markets.
The company, which has slashed 15,000 jobs since mid-2007, said that until consumer confidence returns and availability of finance for customer projects improves, the group expects its performance to decline.
