24th Jul 2020 08:53
(Alliance News) - Ferguson PLC on Friday said trading has improved steadily since April with revenue almost reaching a position of positive growth in the fourth quarter of its financial year.
The distributor of plumbing and heating products said revenue from continuing operations shrank by 3.6% year-on-year in the quarter, starting May 1 and ending 21 July, compared a decline of 15% in April alone. Revenue in the third quarter to April 30 had increased by 0.9%, having only partially covered the pandemic period.
The US market did the best in the third quarter, with revenue only declining 0.6%, owing to the quick easing of lockdown there now being partially reversed.
Revenue trends have improved in both Canada and the UK as widespread lockdown restrictions have started to be eased, Ferguson said. In the UK recent revenue trends have been more encouraging as lockdown measures have been eased, the company said.
The UK saw a massive decline in revenue of 60% in April and then 29% in the third quarter.
eBusiness continued to show a strong growth of 30% year on year.
Despite the decline in revenue, the company said it continues to implement cost reduction measures to ensure a good medium-term operating position. It said it expects the ratio of net debt to adjusted earnings before interest, tax, depreciation and amortisation to be below 1.0 times at its financial year-end on July 31.
Chief Executive Kevin Murphy said: "Ferguson has a strong balance sheet with good liquidity and the group remains well positioned to deliver consistent outperformance."
Ferguson shares were up 1.6% at 6,984.00 pence each on early on Friday morning in London.
By Greg Roxburgh; [email protected]
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