Shares in building materials group Wolseley have surged, despite the firm reporting an annual loss because of the continuing woes in the housing market.
The company reported a pre-tax loss for the year to 31 July of £766m ($1.2bn), compared with a profit of £399m in the same period last year.
But excluding several one-off charges, the company made more money than analysts had expected.
Its shares ended Monday trading up 11.2% or 146 pence to 1455p.
Wolseley made a trading profit of £447m, down 43% from a year ago, compared with analysts' estimates of about £416m.
The construction industry has been one of the hardest hit by the recession.
"Market conditions will remain challenging driven by tight credit conditions, high levels of foreclosures and rising unemployment," it said.
The company said that it would not pay a final dividend "in light of adverse market conditions".
In May, it said it had cut 14,000 jobs worldwide in order to cut costs, and in June its chief executive, Chip Hornsby, left the firm.
The company has also raised £1bn by issuing new shares in a rights issue this year.
Wolseley owns Plumb Center and Build Center in the UK.SOURCE