Building products provider Wolseley (WOS) is the biggest faller on the FTSE 100, down 4.4% at £41.09, as full year results underwhelm, it warns of an uncertain outlook and announces an overhaul of its UK business in the face of increased competition.
Broker Jefferies thinks this process could be the precursor to the company becoming a pure American play. 'With a further strategic review underway in the Nordics we believe this represents the first move towards a US/North American only business over the medium/long term.'
The company already has heavy exposure to the US and is exposed to a recovery in the country's construction market, this feeds into the prelims albeit with weakness on the commercial side.
The restructuring of the UK operations will see 80 branches closed and 800 job cuts at a cost of £100 million.
In the wake of the Brexit vote, Wolseley has enjoyed a strong run in common with the majority of big overseas earners listed in London.
Deutsche Bank reiterates a 'hold' recommendation and comments: 'The stock currently trades on 12m fwd earnings of 15x vs. 12.5x at the all time peak of US construction and sub 10x in a slowdown. We are cautious on the outlook for the US and remain cautious on Wolseley.'