Wolseley (WOS) is a trade distributor of plumbing & heating products as well as building materials to the European and North American markets, with the US generating 39% of revenues in 2009/10. Strong brands, including Ferguson (US), Wolseley Canada (CAN), Plumb Center (UK), Stark (DK) and Brossette (FR), remain WOS’s key positives, with well-diversified customer and supplier bases also eliminating dependency risk. With GBP 1bn raised through a share placement and rights issue in April 2009 and a GBP 895m committed debt facility, WOS is well-positioned to take advantage of any recovery in markets. Restructurings in 2010 have lowered the cost base by further GBP 354m. This protected the operating margin during the 9% revenue decline. In 2010 WOS has sold underperforming non-core assets to focus on its growth businesses in an economic environment with limited long term visibility. Although the new residential market is stabilising, deterioration in the commercial and industrial construction sectors, particularly in the US, will continue to weigh on revenue growth in the medium term.