A strong performance from its American business drove interim pre-tax profit up 21% to 拢360m at materials company Wolseley.

Whereas the UK market was estimated to be down 4% on the same period last year, Wolseley's operating profit in the UK and Ireland rose 2.8% to 拢87m for the six months to the 31 January.

Charlie Banks, Wolseley chief executive, said: "The US economy is chugging along. Interest rates are creeping up but not by too much and our investments there are paying off."

He said that in the UK, Wolseley expected "modest profit growth" in the second half compared with the same period in 2005.

Of the 拢436m Wolseley spent on acquisitions in the six-month period, 拢225m went on the UK and Ireland, compared with 拢185m in North America.

Banks said that although further acquisitions were on the cards, the company was taking to a "disciplined" approach to them.

Turnover rose 26% to 拢6.7bn, and the board recommended an interim dividend of 9.85p a share, up 12%.