2nd Oct 2018 07:52
LONDON (Alliance News) - Building materials distribution company Ferguson PLC said on Tuesday its revenue was bolstered by strong trading in the US, however profit fell due to the impairment of an interest in an associate.
For the year to the end of July, pretax profit fell to USD1.19 billion from USD1.42 billion the year before, due to a USD122 million impairment in its holding in Meier Tobler Group AG, which saw difficult trading conditions and has suspended dividends until 2020.
Trading profit for the year rose by 15% to USD1.51 billion from USD1.31 billion, due to strong performances in the US and Canada & Central Europe regions, the former due to a strong residential, commercial and industrial market.
Revenue was USD20.75 billion, up 7.6% from USD19.28 billion the prior year.
Although the US and Canada & Central Europe regions have performed well, UK trading profit continued to drop in a challenging market, Ferguson said, as a restructuring programme continues in that segment.
Ferguson declared a full year dividend of 189.3 cents per share, up 21% from 156.4 cents the year before. In addition, during the year the group returned USD2.0 billion to shareholders through dividends and buybacks.
Ferguson said for the first eight weeks of its current financial year, organic revenue growth was in line with overall growth rate the year before, even as September growth was slower compared to August.
"In the USA, which generated 90% of group trading profit, all businesses grew well and continued to gain market share, with the Industrial business having a particularly strong year. Markets in the US and Canada have remained good throughout the year despite recent inflationary pressures, though the UK remains tough," said Chief Executive John Martin.
"We continue to execute our strategy to allocate resources to markets and businesses where we are best equipped to win. Our focus remains on investing in organic growth, supplemented by selective bolt-on acquisitions where we can expand our leadership positions or invest in capabilities to extend the value of our brand," Martin added.
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