Plumbers and builders merchants group Wolseley has reported a 30% rise in group trading profit for the third quarter to April 30, despite UK profits falling 11%.
The group, whose UK operations include Plumb Center and Build Center, generated total sales of £3,271m during the period, up 1% on the previous year, and up 6% on a like-for-like basis.

Group trading profit also rose 30% to £131m.

In the UK, revenue declined by 4% to £601m, but on a like-for-like basis, sales increased by 1% in Q3. The difference between the two figures is mainly due to the disposal of Brandon Hire back in September 2010, said the company.

Trading profit for UK operations fell 11% to £28m, due to "adverse bad debt charges which were £4m higher than last year".

Drain, Pipe and Climate Centers all performed well in the period, said the report, while Build Center continued to improve its trading performance.

However, Bathstore continues to face challenging market conditions, with revenue "significantly lower than last year".

Gross margin across the whole group improved despite continued pricing pressure, up 0.2% on last year at 28%, which the company attributed to its focus on improving customer and product mix.

Operating costs were down £19m, mainly due to disposals, although the underlying cost base in constant currency increased 2.8% on last year, said the report.

Chief executive Ian Meakins commented: "The group continued to make progress in the third quarter broadly maintaining the revenue growth trends achieved in the first half despite tougher comparatives. New residential construction, which accounts for 20% of group revenues, remained subdued in most regions while demand in repair, maintenance and improvement segments held up well in most markets."

He added: "Like-for-like revenue growth continues to be strongest in the USA, with positive momentum in the Nordics and France offset by weaker trends in the UK and Canada. We continue to maintain our emphasis on protecting market share and gross margins whilst keeping a tight control of the cost base. Management remains confident of meeting our expectations for the full year."

The company recently confirmed that several of its business are under scrutiny, amid rumours that certain brands, including Build Center, are up for sale.