The firm, which has been through a heavy cost-cutting exercise, said UK sales were up 4% on a like-for-like basis.

UK trading profit in the first three months of 2010 bubbled up to £31m compared to £13m at the start of last year.

Ian Meakins, Chief Executive said: “Demand across the markets in which we operate remains mixed though most markets continue to stabilise.

“The UK and Canada generated like for like revenue growth and the revenue trend is encouraging in the USA.”

The group cost base is down £106m against last year and £8m in restructuring was charged at the start of the year.

Net debt at the world’s biggest builders’ merchant presently stands at £1bn.

Based on improved results, Wolseley said that group trading profit for the year to July would exceed analysts forecasts of  £347m.