Build Center chain Wolseley said revenues were up by a quarter after solid trading in the UK and the impact of a host of acquisitions.

The company said favourable currency exchange rates had also added £300 million to group revenues in the 11 months to June 30.

Wolseley, which has made £900 million of acquisitions in the last year, posted revenues of £11.3 billion and profits of £708 million in its previous financial year.

It said it had outperformed its market in North America, while in the UK it saw double-digit revenue growth, including some positive organic growth.

However, it pointed out that consumer caution meant that the first 11 months of this financial year had been more challenging than the prior one.

Wolseley said revenues were up 25 per cent on the same period in 2005, including double-digit organic growth. Trading profit was up by around 20 per cent, although as expected the rate of growth slowed over the second half of the financial year due to stronger comparisons with a year earlier.

In a trading statement, the company said there were further opportunities for growth in the US, despite a softening in the housing market.

In the UK it said recent sales trends supported the view there will continue to be a gradual improvement in the housing and repair, maintenance and improvement markets.

Chief executive Charlie Banks said: "We are on track to achieve another strong performance across our businesses this year.

"Although Europe remains slow, the North American economies are strong and this encourages us for the months ahead."

In Europe, revenue in the 11 months to June 30, including acquisitions, was up by around ten per cent compared to the same period last year. Trading profit was up only slightly though.

Wolseley UK, including Ireland, achieved double-digit revenue growth.

The company noted: "Continued consumer caution has meant the first eleven months have proved to be more challenging than the prior year. However, the commercial sector, including Government spending, continues to show a positive trend overall, despite delays in certain projects. The trading margin was slightly lower.

"The new national distribution centre in Leamington Spa is to be opened on schedule in September." The company has 380 people at its offices in the town, while the NDC will employ a further 150.

In France, government tax i ncentives continued to underpin growth in the new residential market, but repairs, maintenance and improvement, continued to show only modest growth.

Businesses in Italy, Switzerland and the Netherlands all showed good increases in trading profit.

Wolseley said results for the first 11 months showed a strong increase in revenue and profits "driven by high rates of organic growth and market outperformance in North America and the contribution from acquisitions".

The group stated: "The positive economic environment in the US and Canada has enabled the North American business to deliver strong revenue and trading profit growth, in excess of 30 per cent.

"In the US, although new housing starts are beginning to show the expected decline from record levels, housing related activity remains good. The commercial and industrial sectors continue to improve."

US plumbing operations had performed particularly well. Building materials trading profits were up more than 40 per cent.

The group said its financial position remained strong with gearing slightly up at around 75 per cent, reflecting acquisition spend.

It said in a full year its 50 acquisitions were expected to add £1.4 billion to group revenue. Preliminary results for the year to July 31 are to be announced on September 25.