745 expected to go from UK arm in first half, while builders merchants reports profit jump of 67.9%.
Following the release of Wolseley's year-end results in September, DIY Week reported that the group had axed 3,083 jobs in the 12-month period, with 284 branch closures. However, Wolseley has reduced its headcount further in the first half of 2010, with 745 redundancies in the UK - expected to result in annualised savings of £11m.

In its latest trading statement, Wolseley announced 1,901 job cuts across the group in H1 in a bid to save a further £64m a year.

Wolseley plc, which operates the Build and Plumb Center brands, reported improved trading at its UK arm for the six months to January 31, 2010. Trading profit for the first half was up 67.9% to £33m, with the UK trading margin up from 1.4% to 2.7%. The group attributed the increase to the cost reductions it made last year.

Wolseley UK recorded a 12% decrease in revenue to £1,233m, for the six-month period, while the overall like-for-like decline was just 4% compared with a drop of 13.1% in H2 of the previous year.

The group's lightside plumbing and heating brands continued to perform well in the UK and achieved an overall trading margin of 6.5% in H1 - performing at or above the market. Wolseley believes the residential markets, including RM, have now broadly stabilised, although stressed that the company remains cautious due to credit conditions, levels of foreclosures and the unemployment rate.

The heavyside building materials operations benefited, said Wolseley, from "the lower cost base and the action in the prior year to focus the Build business on fewer, more profitable locations" and, as a result, moved back into profitability.

The group exited the Irish market in January this year. Wolseley Ireland Holdings Ltd generated a trading loss of £30m in the year ended July 31, 2009. The group also exited underperforming businesses in Belgium, the Czech Republic and Slovakia.

Group chief executive Ian Meakins said "The results for the first half reflect good progress on cost reductions, which were delivered ahead of schedule. Market conditions remain challenging, though we are now seeing stabilisation in many of our markets. Against this backdrop, the group will continue to focus on an improved service to customers, maintaining market share and gross margins, delivering a good cash performance and maintaining cost discipline."

Overall the group saw a 15.1% decline in revenue to £6,331m. The rate of like-for-like revenue decline continued to slow, although mainly as a result of more favourable comparators. Trading profit was also down 33.5% to £167m. The company reduced its net debt by £49m to £910m.