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Ferguson PLC

Ferguson Plc Solid performance driven by strong revenue growth

Ferguson Plc (LON:FERG), today announced results for the year ended 31 January 2019.




H1 2019


H1 2018



(at constant exchange rates)

Organic change

Statutory financial results





Profit for the period attributable to shareholders




Basic earnings per share



Interim dividend per share




Alternative performance measures1

Ongoing revenue






Ongoing gross margin



Ongoing trading profit





Headline earnings per share




Net debt : EBITDA



Trading days





− Ongoing revenue 8.1% ahead of last year including organic growth of 6.5%.

− Strong US organic revenue growth of 9.7% with continued market share gains and trading profit growth.

− Within our Blended Branches network organic revenue growth was strong in every region:

− East


− West


− Central


− US Waterworks business generated strong organic revenue growth of 7.8%.

− Solid trading performance in Canada and good progress on strategic initiatives in the UK.

− Completed a number of acquisitions including Blackman and Wallwork with 33 branches in NY and NJ.

− Exit of Dutch plumbing and heating business and other surplus assets generated $255 million of cash.

− Interim dividend of 63.1c up 10.0%.

− Strong balance sheet, net debt : EBITDA ratio of 1.1x.

− Proposal to move tax domicile to the UK.

1) The Group uses Alternative Performance Measures (“APMs”), which are not defined or specified under IFRS, to provide additional helpful information. These measures are not considered to be a substitute for IFRS measures and are consistent with how business performance is planned, reported and assessed internally by management and the Board. For further information on APMs, including a description of our policy, purpose, definitions and reconciliations to equivalent IFRS statutory measures see note 2 on pages 15 to 19.

John Martin, Chief Executive, commented:

“Ferguson performed well in the first half with continued strong organic growth in the US of 9.7%. Growth in the US was widespread across all geographic regions, major business units and end-markets. In our Blended Branches network the East grew organic revenue 8.4%, with the West up 10.1% and the Central region was 9.2% ahead. The Waterworks business also made good progress generating organic revenue growth of 7.8%. In other geographies residential markets weakened in Canada and in the UK markets were flat.

“After a strong revenue performance in the first half our growth rate has moderated recently in line with conditions in our markets. While we still expect to generate further revenue growth in the second half, we have revised our estimates of Group organic revenue growth to between 3-5%. Consequently, we expect trading profit for the full year to be towards the lower end of the range of analysts’ expectations2.

“We will continue to execute our strategy of delivering excellent customer service to maximise profitable growth opportunities whilst remaining vigilant on costs. Our capital allocation policy is unchanged and we will continue to maintain a strong balance sheet.”

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