Ferguson PLC (LON:FERG) reported solid half-year growth but said it was “too early to understand” the impact of coronavirus on the business as governments start to limit the movement of people to halt the spread of the epidemic.
The plumbing and heating products distributor declared an interim dividend of 67.5 US cents, up 7% year on year, after revenues rose by 1% to nearly US$11bn and profits before tax fell 6% to US$640mln in the six months to 31 January.
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Excluding its UK-based business, Wolseley, revenues from the ongoing US business were up 4% to US$9.9bn and trading profits up almost 10% to US$782mln.
Ferguson said the demerger process for Wolseley is “on track” for completion within the current calendar year, while an announcement on a potential listing on Wall Street will be made “later in the spring”.
Chief executive Kevin Murphy, who was promoted in November, said: “Given the markets we serve remained flat, we were pleased with our progress in the first half and we continued to generate above-market revenue growth in the major US business units.”
He added that any intention to confirm its full-year trading profit outlook for 2020 had been scuppered by the situation unfolding with coronavirus (Covid-19).
“Recent government actions to contain the spread of COVID-19 and societal reactions, alongside any potential actions we will take to mitigate them are not reflected in existing market forecasts and it is too early to quantify them,” he said.
The company had cash of US$775mln on the balance sheet at the half-year stage, while net debt stood at US$1.9bn. This month the group agreed a larger, US$1.1bn credit facility from a syndicate of eleven banks.