Rich prizes in the Wolselely pipeline

PLUMBERS' merchant Wolseley hopes to reap rewards from government efforts to increase the supply of new homes.

Its six-month UK sales topped £1bn for the first time, helped by demand for boilers and plumbing tools.

Group sales jumped 22% to £4.8bn. Chief executive Charles Banks said: 'People are upgrading their homes.' He reckons the Barker report's aim of speeding up the planning system is 'good' news for Wolseley though it will take time.

Group pre-tax profit rose from £187m to £226m and was up 9.4% on an underlying basis. The weak dollar cost £4.5m. Dividends jumped from 5.6p to 7.8p, reflecting a 'one-off rebalancing between the interim and final dividend'.

Wolseley shares fell 26p to 826 1/2p. They have had a strong run over the past year and trade on just over 12 times earnings. Banks is bemused that some analysts are worried about the outlook for the US market, saying: 'We are bullish.'