CRH PLC (LSE:CRH) may have just lit the flame for London-listed firms making the switch to a primary listing in the US.
The FTSE 100-listed building material firm said it is making the switch as it would “bring increased commercial, operational and acquisition opportunities,” with more than 75% of the group’s EBITDA derived in North America.
A potentially larger market valuation is another argument in favour of moving, especially if a company is looking at issuing shares for acquisition deals.
Ferguson, which used to be a Footsie constituent, moved its primary listing to the US last year, while mining giant BHP Group was another to depart the UK’s flagship index in January 2022, moving its main listing to Australia.
Others have also entertained the idea, most notably Shell, the UK’s most valuable company at £177bn.
Recently appointed chief executive Wael Sawan hired a team of executives to review parts of Shell’s business to win back American investors, according to the Financial Times, which cites people familiar with the matter.
Flutter Entertainment, the gaming and gambling site, may also be thinking of making the switch as its FanDuel US arm looks set to become its largest business by revenue.
Here is a list of FTSE 100 companies which derive more than 50% of their income from the US or North America.
Ashtead
Ashtead Group, the industrial equipment rental company, generated a huge 81.3% of its turnover from the US, amounting to roughly £6.7bn of revenue, in the year to 30 April 2022.
In comparison, it made just shy of £1bn in the UK, roughly 12.4% of its earnings.
The group is currently valued at £24.3bn.
Compass Group
Food service company Compass made £17bn in turnover from the US in the year to 30 September 2022.
That was roughly 67.1% of its revenue, with a market cap of £33.4bn.
Pearson
British-owned education publishing and assessment service Pearson reported 66.9% of its turnover in North America, almost £2.3bn of revenue.
The UK accounted for 10.4% of its income, roughly £355mln, in 2021.
65% of the analytics and credit reporting company’s revenues came from its US business, some £4.1bn, in the 12 months to 31 March 2022.
UK operations accounted for a smaller percentage at 13.4%, while the company has a market cap of £25bn.
Bunzl
Distribution and outsourcing company Bunzl made 59.7% of its money, £6.1bn, in North America in 2021.
UK and Ireland accounted for 12.2%, with the FTSE 100 firm having a market cap of £10bn.
RELX
RELX, the information and analytics company, made £5.1bn in North America last year, which was 59.6% of total revenue.
The UK was its smallest market, making only £544mln, while the group has a market cap of £48.2bn.
National Grid
National Grid operates in two markets, the UK and the US.
The US edged out in terms of turnover in the year ended 31 March 2022, making 57.7% of its revenue stateside, over £10bn, with a market cap of £37bn.
Smith & Nephew
Medical equipment manufacturer Smith & Nephew, which is valued at roughly £10bn, made just over 50% of its income from the US, which contributed £2.6bn in earnings.
The UK, on the other hand, contributed £189mln, or 3.6%, in revenue in 2021.
Informa
Just over 50% of the publishing group’s revenue derived from the US, 50.3% to be precise, in 2021.
Informa made £905mln in the US, with income from the UK ranking below continental Europe, China, and the Rest of the World.
Informa’s market cap is £9.5bn.