Ferguson Fiscal Year 2020 Pretax Profit Slipped Amid Pandemic; Plans Full US Listing -- Update
--Ferguson's fiscal 2020 profit fell despite a rise in revenue
during the coronavirus pandemic
--The company reinstated dividends and its mergers and
--Timing of plans to demerge Wolseley are uncertain in the
current economic climate, and plans for a full U.S. primary listing
are set for early 2021
By Joe Hoppe
Ferguson PLC on Tuesday reported a 4.8% fall in pretax profit
for fiscal 2020 during the coronavirus pandemic, declared a
dividend, and said it would seek a full U.S. listing in early
The supplier of plumbing and heating products made a pretax
profit of $1.26 billion for the year ended July 31 compared with
$1.32 billion for fiscal 2019. The company attributed the fall to
the effects of the pandemic.
Revenue was $21.82 billion compared with $22.01 billion in
Trading profit--one of the company's preferred metrics which
excludes exceptional and other one-off items--was $1.60 billion
compared with $1.53 billion the year before.
The board reinstated a dividend of 208.2 cents a share, flat on
2019, given its strong financial position and good prospects.
The timing of plans to spin off the company's Wolseley U.K.
business by way of a demerger remain uncertain given the economic
environment, and it is assessing other separation operations
alongside progress toward the demerger, the company said.
Ferguson said it has appointed Bill Brundage as its new chief
financial officer, effective from Nov. 1. Mr. Brundage is currently
CFO of Ferguson Enterprises, a role he has held since March
The fundamental aspects of its business model remain attractive
despite caution in its outlook for fiscal 2021 as a whole, given
the uncertain nature of the virus, Ferguson said. Since the start
of the new year, low-single-digit revenue growth has been generated
in the U.S. in flat markets overall, Ferguson said. The company
added that plans for a full U.S. primary listing are set to become
effective in the first half of calendar 2021, after shareholder
approval in July.
Ferguson also said it intends to resume its mergers and
acquisitions program, funding selective bolt-on acquisition
programs, though its $500 million share buyback program remains
Shares at 1309 GMT were up 490 pence, or 6.6%, at 7,906
Write to Joe Hoppe at email@example.com
(END) Dow Jones Newswires
September 29, 2020 09:25 ET (13:25 GMT)
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