Wolseley said its underlying tax rate would fall from 34% to 28%. In it latest financial year that would have saved around £23m.

The firm reported a 9% rise in revenues to £13.2bn in the year ending 31 July and trading profits of £450m in the year to July 31, up 1% on a year earlier.

In the UK, sales slide 9% to £2.47bn with trading profit nearly doubled to £91m, helped by the builders’ merchant’s exit from Ireland.

Wolseley said: “We expect the overall recovery to remain weak as activity levels are held back by fragile consumer confidence and low availability of credit.”

Plumb and Parts Center performed well and ahead of the prior year. In addition, Build Center, which was loss making in 2009, strongly improved its trading performance and returned to profit in the period benefiting from a lower cost base.

Ian Meakins, Chief Executive said: “Demand across our markets remains mixed and the economic outlook continues to be unclear.

“Revenue growth in the early part of the current financial year is similar to that seen in Q4 last year.”