Builders merchant Wolseley (LON:WOS) announced plans to create a new holdings company which will have a Swiss tax residency and will be incorporated in Jersey, saying the change will "help provide more certainty in its taxation position".
“New Wolseley ... [is] expected to enable the group to achieve a competitive effective corporate tax rate,” the company stated. "The proposals will not change the tax position of the UK business.”
Separately the company announced that former Imperial Tobacco (LON:IMT) chief executive Gareth Davis will succeed retiring chairman John Whybrow in January 2011.Davis is currently William Hill (LON:WMH) chairman and non executive director at DS Smith (LON:SMDS)
Davis has been a non executive director at Wolseley since 2003, and he will now step up to take the key figurehead role.
“Wolseley is an excellent business and while it has been through very difficult market conditions recently, it is now emerging strongly with a clear strategy and direction," Davis commented.
In this morning’s final results, the British builders merchant told investors that it would resume dividend payments in 2011.
For the twelve months ended 31st July 2010, Wolseley reported an improved like-for-like revenue performance in H2. However at constant currencies annual revenue dropped by 10% to £13bn. The company reported its pretax loss narrowing to £328 million from 766 million a year earlier.