Trading Statement

Wolseley PLC
23 January 2006

                                  NEWS RELEASE
                                23 January 2006


                                  Wolseley plc
   Pre-Close Period Trading Statement for five months to 31 December 2005 and
                               Acquisition Update


Wolseley plc, the world's largest specialist trade distributor of plumbing and
heating products to professional contractors and a leading supplier of building
materials, issues its regular trading statement for the five months to 31
December 2005, prior to entering its close period and announces a further five
acquisitions for a total consideration of approximately £14 million. These
acquisitions bring Wolseley's total spend on acquisitions, since the beginning
of the financial year, to approximately £436 million. The interim results for
the six months ending 31 January 2006 are due to be announced on 21 March 2006.


Trading Update
--------------

Overview

Business conditions in the Group's principal markets have been broadly in line
with comments made in the AGM statement on 17 November 2005.

The Group's results for the first five months to 31 December 2005, prepared
under International Financial Reporting Standards (IFRS), show a strong increase
in sales and profits driven by high rates of organic growth in North America and
recent acquisitions.

After currency translation and including the effect of acquisitions, Group sales
for the five months to 31 December 2005 were up by approximately 25% and trading
profit up by approximately 20% on the same period in 2004. Currency translation
benefited the reported sterling figures by approximately 3%.

The Group's trading margin for the five month period is slightly lower than the
equivalent period in the prior year primarily due to commodity price gains last
year as well as the impact of acquisitions and additional investments in the
business to position the Group for further growth.

Further details of market conditions in each of the Group's business segments
are set out below.


North American Plumbing and Heating Distribution

In the USA, housing related activity has been strong, with the repairs and
remodelling market benefiting from the positive economic environment. The
commercial and industrial sectors continue to improve.

The US plumbing operations have performed strongly with sales in local currency
for the five months to 31 December 2005 up by more than 35% and trading profit
up by around 30% on the equivalent period in the prior year. The majority of the
sales growth was organic. The slightly lower trading margin is in line with
internal targets and reflects the absence of commodity price gains, the
management focus on achieving strong organic growth in selected markets and the
decision to continue to increase the investment in people, logistics and new
branch openings.

In Canada, the construction and housing markets remain strong. In local
currency, Wolseley Canada achieved a double-digit increase in sales and trading
profit was very slightly down compared to the equivalent period in the prior
year as a consequence of on-going investment in people and regional supply
centres.


US Building Materials Distribution

In US Building Materials, local currency sales were up by more than 20% for the
first five months and trading profits up by more than 40% compared to the
equivalent period in the prior year.

The continued strength of the US housing market is illustrated by the level of
housing starts, which remain at around 2 million per annum and the inventory of
unsold houses at around 4.9 months which, although rising, compares favourably
to the long-term average of around 6 months. The strong sales growth in the
period reflects high single digit organic volume growth and the benefit of
acquisitions, partly offset by a 2% net reduction due to changes in lumber and
structural panel prices.

Commodity lumber prices, which directly affect approximately 33% of Stock
Building Supply's product range, were 8.2% lower. For the 5 months to 31
December 2005, average lumber prices of $369 per thousand board feet compare
with $402 per thousand board feet in the prior comparable period. Structural
panels, which directly affect a further 13% of Stock Building Supply's product
range, increased 3.2% to $415 per thousand square feet, compared to $402 per
thousand board feet in the prior period.

Both the trading margin and the return on capital of Stock Building Supply are
showing substantial increases on the prior year.


European Distribution

In European Distribution, sales in the five months to 31 December 2005 in
sterling, including acquisitions, were up by around 5% compared to the same
period in the prior year. Trading profit was marginally lower before the net
benefit of the matters unrelated to normal trading, referred to below.

Wolseley UK, including Ireland, increased sales by more than 5% and achieved
positive organic growth. Trading profit is marginally higher. In view of
continued consumer caution, the first five months have proved to be more
challenging than the prior year although the commercial sector, including
government spending, continues to show a positive trend. The trading margin was
slightly lower due to acquisitions and the initial costs of the new distribution
centre infrastructure. The new national distribution centre in Leamington Spa is
on schedule to be opened by September 2006.

In France, the results of PBM and Brossette reflect ongoing reorganisations and
investment to accelerate future growth. For the 5 months to 31 December 2005
local currency sales in Brossette were up around 2% and trading profit was also
very slightly up, before taking account of the anticipated fine from the French
Competition Authorities, detailed below. PBM achieved an increase in sales of
around 2% in local currency with reported trading profit lower, after
restructuring and other one off costs and before the benefit of the customs
settlement, outlined below. However, the underlying trading profit is broadly
flat compared to the equivalent period in the prior year.

In the rest of Continental Europe nearly all of the Group's businesses showed
sales growth, despite most markets remaining broadly flat.


Financial

The results for the period to date have benefited from a net £5 million at the
trading profit level and £3 million on the interest line relating to matters
unrelated to normal trading. An outstanding claim with the French customs
authorities relating to import duties has been settled in PBM's favour resulting
in a benefit to trading profit and interest of €13 million (£9 million) and €5
million (£3 million), respectively. In addition, Brossette (together with many
other French businesses) is awaiting a decision from the French Competition
Authorities which is expected to result in a fine of not more than €5.8 million
(£4 million). A provision for this fine has been charged against the trading
profit in the period but relates to matters which took place more than ten years
ago.

The Group's financial position remains strong with group gearing, as at 31
December 2005, of more than 65% at current exchange rates (compared to 50.6% at
31 July 2005). The higher gearing reflects cash acquisition spend of over £400
million in the five months to 31 December 2005 offset by operating cash flow. T
he interest charge, before the one-off benefit from the customs settlement, is
notably higher than the corresponding period in the prior year due to interest
rate rises and the higher level of average borrowings as a result of recent
acquisitions.


Outlook

Market conditions in North America are expected to remain strong for the
foreseeable future. Although the market in the UK has slowed in recent months,
the Group expects its UK business to continue to show modest growth. In France,
the reorganisation of Brossette's logistics network and organisational structure
will continue in the second half with some associated additional costs. Growth
in the French RMI market is likely to remain modest, although there are
tentative signs that sales trends are improving. In the rest of Continental
Europe, most of the Group's business should show some progress in generally flat
markets.

The Group is well positioned for further growth in the second half of the
financial year.



Exchange Rates

The average profit and loss account translation rate for the first five months
was $1.76 to the £1 compared to $1.85 for the comparable period last year, a
rise of 5.1%, and €1.46 to the £1, unchanged compared to the prior year.

Trading profit, a term used throughout this announcement, is defined as
operating profit before amortisation of acquired intangibles. Trading margin is
the ratio of trading profit to sales stated as a percentage.



Acquisitions Update
-------------------

Since Wolseley's last acquisitions update announcement on 22 November 2005, an
additional five distribution businesses in Europe and North America have been
acquired for an aggregate consideration of approximately £14 million in cash.

These acquisitions bring Wolseley's total spend on acquisitions, including debt
acquired, since the beginning of the financial year, to approximately £436
million. In total, the 22 acquisitions completed to date are expected to add
approximately £697 million to Group turnover in a full year. Goodwill and
acquired intangibles related to these 22 acquisitions is estimated to be around
£148 million.

European Distribution

In January 2006, PBM in France acquired Charpentes Calonge ('CC') from the
Calonge family (Didier, Joelle, Christophe and Sandra) and Bigmat Boismat
('Boismat') from Daniel Leroux. CC fabricates roof trusses and other traditional
timber frameworks and is based in south west France. In the year ended 31
December 2004, CC had sales of €2.5 million (£1.7 million) and had gross assets
of €0.8 million (£0.5 million) at that date. Boismat is a builders' merchant
operating from three branches in the Loire region of France. In the year ended
31 December 2004, Boismat had sales of €7.1 million (£4.9 million) and had gross
assets of €2.9 million (£2.0 million) at that date.

Also in January, Tobler in Switzerland acquired Friosol from PanGas. Friosol is
a distributor of pipes, valves, fittings (PVF), insulation and gases for the
refrigeration and air conditioning markets. In the year ended 31 December 2004,
Friosol had sales of CHF11.4 million (£5.0 million) and had gross assets of
CHF3.9 million (£1.7 million) at that date.

North American Plumbing and Heating Distribution

In November 2005, Ferguson acquired South Tahoe Plumbing Supply ('S. Tahoe')
from B. G. Solley and M. Solley. S. Tahoe distributes plumbing and HVAC
equipment primarily for the residential market from a single branch in South
Lake Tahoe, California. In the year ended 31 December 2004, S. Tahoe had sales
of $1.6 million (£0.9 million) and had gross assets of $0.5 million (£0.3
million) at that date.

In January 2006, Ferguson acquired the assets of Colgan Distributors, Inc. and
Colgan Cabinets, Inc. ('Colgan'). Colgan distributes heating, ventilation and
air conditioning (HVAC) products and residential cabinets in Louisiana. In the
year ended 31 December 2004, Colgan had sales of $11.0 million (£6.2 million)
and had gross assets of $3.7 million (£2.1 million) at that date.

The divisional split of the total acquisition spend since 1 August 2005 is:

Division                                       No. of Acquisitions     Spend
                                                                     £ million

European Distribution                                            8         251
North American Plumbing & Heating Distribution                  12         111
US Building Materials Distribution                               2          74
                                       TOTAL                    22         436

The following exchange rates have been used for the acquisitions noted above:
£1 = €1.46, £1 = CHF2.26, £1 = $1.77.


Charlie Banks, Group Chief Executive of Wolseley, said:

'We have seen another strong performance for the Group as a whole over the first
five months of the year. Although Europe remains slow, the US businesses enjoyed
a strong start to the year and this encourages us for the months ahead.
Furthermore, the acquisitions and other investments we have made position us
well for further growth in the second half.'



There will be an analyst/investor meeting today at 9.30 a.m. taking place at
UBS, 1 Finsbury Avenue, London, EC2.

A dial-in facility will be available for this meeting:
UK dial-in 020 7162 0125
European dial-in + 44 20 7162 0125
International dial-in [phone]

A replay facility will be available until 6 February 2006 by dialling:
UK freephone 0800 358 1860 (UK only)
UK & International [phone]

Pass code 689126

US dial-in [phone]
Free phone [phone]

Passcode 689126



Following the FTSE's decision to move Wolseley from the Construction and
Building Materials sector to the Support Services sector, Wolseley will be
hosting a teach-in for analysts and investors who are unfamiliar with the
company but would like to know more.

The meeting will be held on 1 February at 14:00 in London. For further details
please contact Margaret Nunn, Wolseley Investor Relations at 
[e-mail] or by telephoning [phone].



ENQUIRIES:

Investors/Analysts:
Guy Stainer                           0118 929 8744
Head of Investor Relations            07739 778 187

Press:
Penny Studholme                       0118 929 8886
Director of Corporate Communications


Brunswick                             020 7404 5959
Andrew Fenwick
Deborah Fairbrass




Certain statements included in this announcement may be forward-looking and may
involve risks, assumptions and uncertainties that could cause actual results to
differ materially from those expressed or implied by the forward looking
statements. Forward-looking statements include, without limitation, projections
relating to results of operations and financial conditions and the Company's
plans and objectives for future operations including, without limitation,
discussions of the Company's business and financial plans, expected future
revenues and expenditures, investments and disposals, risks associated with
changes in economic conditions, the strength of the plumbing and heating and
building materials market in North America and Europe, fluctuations in product
prices and changes in exchange and interest rates. All forward-looking
statements in this respect are based upon information known to the Company on
the date of this announcement. The Company undertakes no obligation to publicly
update or revise any forward-looking statement, whether as a result of new
information, future events or otherwise. It is not reasonably possible to
itemise all of the many factors and events that could cause the Company's
forward-looking statements to be incorrect or that could otherwise have a
material adverse effect on the future operations or results of the Company.



Notes to Editors

Wolseley plc is the world's largest specialist trade distributor of plumbing and
heating products and a leading supplier of building materials to professional
contractors in North America, the UK and Continental Europe. Group sales for the
year ended 31 July 2005 were approximately £11.3 billion and operating profit,
before amortisation of intangibles, was £708 million. Wolseley has around 63,000
employees operating in 14 countries namely: UK, USA, France, Canada, Ireland,
Italy, The Netherlands, Switzerland, Austria, Czech Republic, Hungary, Belgium,
Luxembourg and Denmark. Wolseley is listed on the London and New York Stock
Exchanges (LSE: WOS.L, NYSE: WOS) and is in the FTSE 100 index of listed
companies.

                                   -- ENDS --




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