Trading Statement

Wolseley PLC
15 January 2003

                                  NEWS RELEASE

                                  Wolseley plc
                      Pre-Close Interim Trading Statement


As part of its normal investor relations activities, Wolseley is issuing its
regular trading statement update prior to entering into the closed period.  The
Interim results for the half year ending 31 January 2003 are due to be announced
on 18 March 2003.

Market Conditions

The AGM statement issued on 13 December 2002 confirmed that there had been no
significant change in the challenging market conditions affecting the group's
businesses since the preliminary results announcement issued on 24 September
2002.  Similarly, there has been no fundamental change in these market
conditions since 13 December.  Further details of market conditions in each of
the group's business segments are set out below.

Results for the five months ended 31 December 2002

On a constant currency basis, group sales for the five months ended 31 December
2002 are 7% up on the equivalent period in the prior year.    After taking
account of the adverse currency translation difference, primarily relating to
the US dollar, for the five months ended 31 December 2002, group sales are up by
2% along with a slight increase in the trading margin.  The average profit &
loss account  translation rate for the first five months is $1.57 to the £1
compared to $1.45 for the comparable period last year, a change of just over 8%.

North American Plumbing and Heating Distribution

In local currency for the five months to 31 December 2002, sales in the US
plumbing operations are 7% up on the prior year, whilst sales in Canada are up
by more than 13%.

Market conditions in the USA and Canada continue to show a mixed picture due to
variations in regional economies.  Housing and re-modelling (RMI) activity has
held up well. The industrial and commercial sector continues to be the weakest.
This sector is not expected to show any major improvement until late in the
current financial year, although the signs are that the bottom has now been
reached.

The US plumbing and heating distribution operations are continuing to derive
benefits from the integration of Westburne's US business and Familian Northwest
into Ferguson.  The gross margin for the first five months shows a further
increase on the prior year due to increased throughput at the distribution
centres.  This, together with careful control of the cost base, has resulted in
an improvement in the net margin for the same period.  This trend is consistent
with achieving a 6% trading margin objective a year ahead of schedule.

US Building Materials Distribution

Aggregate US housing starts remain robust at an average of around 1.6 million
starts per annum.   The wide regional variations, previously reported, continue.
Weakness in certain local markets for Stock Building Supplies in the first five
months has generally been driven by economic difficulties resulting from the
downturn in the technology and manufacturing sectors.

Commodity lumber prices, which directly affect approximately 40% of Stock's
product range, have continued to be well below the historic norm due to excess
global supply.  Average lumber prices for the first five months of $276 per
thousand board feet are over 6% down on the prior period average of $296.  These
lower lumber prices have had the effect of reducing Stock's local currency sales
by more than 2% in the five-month period compared to last year.  Management's
successful efforts to improve the gross margin percentage for this period have
partly mitigated the effect of the lower lumber prices, but profits for the
first five months are down compared with the prior year.

Stock is in the process of carrying out a reorganisation of its management
structure, which will increase the focus on achieving growth in specific market
sectors and product groups and reducing administrative costs.  The benefits of
these measures and the related cost savings should begin to materialise towards
the end of the current financial year.

European Distribution

Of the European markets which the group services, the UK has been the most
buoyant in the current financial year.  The markets in Continental Europe remain
challenging and are likely to remain so for the remainder of this financial
year.

Wolseley's UK operations recorded double-digit sales growth in the first 5
months but the impact of the recent investments in the two new distribution
centres will affect profits in the first half.  Trading profit is marginally
ahead of last year but the operating margin, although behind last year, is
expected to recover by the financial year-end.

Local currency sales and profits in each of the Continental European businesses
for the first five months are marginally ahead of the comparable period last
year.

Financial

The group's cash flow and financial position remains strong.  Group gearing at
31 December 2002 is approximately 33% (compared to 34% at 31 July 2002).  The
working capital to sales ratio continues to show a favourable trend.

Outlook

The underlying performance of the group remains strong against a background of
mixed and uncertain market conditions.  These factors are unlikely to change
significantly in the short term.  Wolseley's management has a track record of
outperforming in challenging times and will continue its focus on cost control,
margin enhancement and exploiting growth opportunities as they arise.

                                    - ends -


This Trading Statement contains certain forward-looking statements as defined
under US legislation (Section 21E of the Securities Exchange Act of 1934).  By
their nature, such statements involve uncertainty; as a consequence, actual
results and developments may differ from those expressed in or implied by such
statements.


FURTHER INFORMATION:

Wolseley plc                                   Brunswick Group Ltd
Tel:  [phone]                            Tel:  [phone]
Steve Webster - Group Financial Director       Andrew Fenwick
                                               Sophie Fitton


There will be UK analyst meetings today at UBS Warburg offices, Finsbury Square,
EC2


                      This information is provided by RNS
            The company news service from the London Stock Exchange