A CONSTRUCTION supplies firm, founded as an Australian-based sheep shearing company, says strong profits across the UK and US have helped it avoid crumbling European markets.

Wolseley, which distributes heating and plumbing parts to the building trade, says profits hit £150m in the first quarter, with overall like-for-like sales growing by 2.4 per cent.

The company, whose UK operating division employs about 365 people in Ripon, North Yorkshire, working in customer service, IT and finance teams, says sales grew by five per cent in the UK and more than eight per cent in the US, compared to steep falls in Europe.

Wolseley, which achieves about 15 per cent of sales from UK businesses such as Plumb Center, Pipe Center and Drain Center, said European trading conditions remained challenging, with underlying sales in central Europe falling by 4.6 per cent and dropping by more than nine per cent in France, where housebuilding markets remain sluggish.

The group's UK arm last year bought 22 Burdens drainage supplies depots in a £30m deal, and revealed the move was progressing well, despite online sales developments contributing to drag UK trading profits down £2m to £24m.

It said UK like-for-like revenue growth stood at 5.2 per cent, driven by increases in its Plumb and Parts Center operations, though its Pipe and Climate Centers were being held back by weaker markets.

In the US, the group says overall trading profits stood at £115m with its heating, ventilation and air conditioning business making good progress, though its industrial sector was held back by lower demand in shale gas work.

It said like-for-like revenue in Canada were flat due to weak residential construction markets, though its £7m trading profits were slightly ahead of last year.

Ian Meakins, Wolseley chief executive, said it remained committed to maintaining its growth.

He said: “We continued to make decent progress in the third quarter, with good growth in the US and the UK, which offset challenging conditions elsewhere in Europe.

“We held our gross margin overall, controlled costs to generate 7.9 per cent trading profit growth in the ongoing business, and remain focused on customer service, gaining market share and protecting our gross margins.”