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Performance review
Chief Financial OfficerSteve
Webster
2007 has seen a record level of investment of £1.7 billion in acquisitions, including DT Group. Whilst our financial performance has been impacted by the weak new residential housing market in the USA and the weakening of the US dollar, the Group is in a strong financial position with free cash flow up 120 per cent.
Introduction
PurposeThis Performance review has been prepared solely to provide additional information to existing and potential shareholders and other interested parties to assess the Group’s strategies and the potential for those strategies to succeed.
Forward-looking statementsThis review and other sections of this Report contain forward-looking statements that are subject to risk factors, which are further explained in our cautionary statement.
ContentsThe Performance review has been prepared for the Group as a whole and therefore gives greater emphasis to those matters which are significant to Wolseley plc and its subsidiary undertakings when viewed as a whole.
Group £m
*5 years compound annual growth rateGroup £m
The Performance review discusses the following areas:
Company overview and performance monitoring
Operations
Future outlook
Risk management
Financial review
Other financial matters
Basis of preparation of financial informationAs noted in Performance review, these financial statements are the second prepared under IFRS. In respect of five year information included in this Performance review, information for years 2003 and 2004 has been prepared under UK GAAP. Information for 2005, 2006 and 2007 has been prepared in accordance with IFRS.