Building materials firm says it is creating a group holding company as it announces no profit growth in its full-year results

Building materials supplier Wolseley has announced plans to redomicile to Switzerland for tax reasons as it posted flat year profit.

In a statement Wolseley said “the board has concluded that the interests of its business and its shareholders are best served by establishing an international holding company corporate structure that will help provide more certainty in its taxation position”.

The firm said it would create a new group holding company, New Wolseley, that will be UK listed, incorporated in Jersey with its tax residence in Switzerland.

In its full-year results announced today Wolseley made a profit of £450m in the year to July 31 compared with £447m last year. Its revenue was down 10% at £13.2bn.

Commenting on the outlook, Ian Meakins, chief executive said: “Demand across our markets remains mixed and the economic outlook continues to be unclear.  Revenue growth in the early part of the current financial year is similar to that seen in the fourth quarter last year. 

“We will continue to take actions that will strengthen the business and, whilst overall we remain cautious about the outlook for our markets, we are confident that Wolseley will make good progress in the year ahead.”

The company also announced that John Whybrow will retire as chairman at the next annual shareholders meeting and be succeeded by Gareth Davis.