Heating and plumbing company Wolseley said it was switching some of its tax obligations to Switzerland in a bid to slash its bill.
Wolseley also reported revenues for the year to the end of July of £13.2bn, down from £14.4bn a year earlier.
"Demand across our markets remains mixed and the economic outlook continues to be unclear," said the group's chief executive Ian Meakins.
The group outlined a plan to change its corporate structure to create a new holding company which is UK-listed, incorporated in Jersey with its tax residence in Switzerland.
Like for like revenue growth was four per cent in quarter four, according to the figures.
Operating costs were reduced by £353m.
Wolseley said is enjoyed strong cash generation from operating activities of £705m and said it intends to resume dividends at 2011 half-year results.