WOLSELEY THOUGHTS –
EPS up 9.9%, dividend up 25%, new £250m buyback. Continued strong growth in the USA; Europe and Canada remained subdued. USA achieved a record 7.7 per cent trading margin. “We expect the Group's like-for-like revenue growth rate for the next six months to be about 5 per cent”(was 4.2% in results just announced). US (55% sales) did see price deflation (Price deflation was 0.7% principally due to falling commodity prices) whilst UK (15% sales) lfl were down 0.1% BUT price inflation of 0.7% as sought to protect margins. Inflation too in mixed Nordic and European markets. Plenty re-leverage scope x1-2 ND:ebitda targeted but prevailing just <x1. X16 prospective p/e, 2.5% dividend yield, 4%+ free cash flow. £32 -> £35 likley to remain the range shorter term