Plumbing products group Ferguson PLC (LON:FERG) flowed higher on Tuesday after the firm forecast continued outperformance despite its core US market being “broadly flat”.
In its results for the year ended 31 July, the FTSE 100 group reported an ongoing trading profit of US$1.6bn, up from US$1.5bn a year ago, while revenues rose to US$21.7bn from US$20.3bn.
READ: Ferguson plans separate listing for former UK parent Wolseley
The revenue figure was slightly higher than forecasts from UBS, which had expected an income of around US$21bn for the year, with profit also ahead of their estimate of US$1.5bn.
Meanwhile, organic growth in the US, the firm’s core market, reported organic growth of 6.2% in the year, with Ferguson saying its business in the region had seen “continued market share gains”.
The final dividend for the year was increased to US$0.0145 per share from US$0.0131 in 2018, with the total payout for the year rising 10% to US$0.0208.
Looking ahead, the company said that while US market growth was currently “broadly flat” in the new financial year, it expected continued outperformance supported by its order books with “modest growth” in the months ahead.
John Martin, chief executive, added that the firm would concentrate on maximising its organic growth and expanding margins for the new year, as well as “tight cost control and strong cash generation”.
The US market has become the prime focus for Ferguson after announcing in early September that it would be spinning out its UK division, Wolseley, into a separate entity with its own stock market listing.
The rest of the business, meanwhile, is considering a new listing on the US market, with Martin saying the firm was currently “assessing the most appropriate listing structure” for the company’s future.
The solid results lifted the shares by 3.9% to 6,176p in early trading.