Wesfarmers managing director Rob Scott is of the view that there are green shoots in the troubled Bunnings UK and Ireland (BUKI) venture.

Less than a week after UK media reported that Wesfarmers was preparing a dowry to sweeten the deal for a potential suitor, Scott has told analysts that things are looking up for Homebase after a tough March.

“I’m really pleased with the improvement we’ve seen in Homebase at the gross margin level through better pricing, better promotional activity and better stock controls,” he said on Thursday.

BUKI’s sales declined by 6.5 per cent to $374 million in the third quarter, while store-on-store sales were down 15.4 per cent.

Sales declines through January and February were in the order of 5-8 per cent, Scott said, but declined more than 20 per cent in March as a cold snap, dubbed the beast from the east, hit the UK.

Wesfarmers has declined to comment on reports about a potential dowry or broader efforts to find a buyer for the Homebase network, which it purchased in 2016 for around $705 million, but Scott said in February that “all options” were on the table.

An answer on the future of the business is expected at the conclusion of Wesfarmers’ strategic review in June but a full-blown exit would be a costly proposition given that Scott has said there’s over a billion pounds in outstanding lease obligations tied to the venture.

UK press has previously reported that Wesfarmers and its advisor Lazard have considered a voluntary arrangement for the business that would free it of many outstanding lease obligations, although Wesfarmers has not confirmed this.

In the meantime, Bunnings boss Michael Schneider said the Homebase network is “well positioned” for the arrival of the Spring season and that the 23 Bunnings stores that had been converted so far were performing better than the legacy network.

Wesfarmers had previously said the Bunnings format had suffered slower growth during the UK’s winter months, but Scott said on Thursday that the new formats were achieving more than 10 per cent sales uplift’s in some cases.