Materials group post 5% increase in revenues

Wolseley has warned of a slowdown in the UK in the second half of the year, blaming the increase in VAT and government spending cuts.

Speaking after posting a 5% growth in revenues, chief executive Ian Meakins said that the UK was the most “concerning” market for the construction supplies giant.

“Our concern in terms of markets would be the UK, and the VAT rise rise would have some impact, so we are expecting a slowdown in the second half,” he told journalists and analysts in a conference call this morning.

There had been speculation that the firm would return its headquarters to Britain after the chancellor announced a surprise 2% cut in corporation tax. Wolseley moved to Switzerland last October, saving £20m of tax.

However, Meakins said that the firm was awaiting more details of the government’s new tax plans.

“We’ll look at the location when we see the legislation,” he said.

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