Ferguson PLC (LON:FERG) has said April revenue at its UK plumbers' merchant business, Wolseley plunged 60% as the coronavirus crisis lockdown hit activity levels.
For the quarter ended April 30, 2020, the FTSE 100-listed firm said Wolseley's sales dropped by 27% and it swung to a loss of US$12mln, though Ferguson said it still intends to push ahead with plans for a demerger of the UK business.
"The board's strategic intent to demerge the UK business is unchanged and we continue to progress the demerger process, although timing will depend upon the stabilization of market conditions," the company said in a statement.
Things were slightly better abroad, with Ferguson's monthly revenue in the US and Canada falling by 9% and 34%, respectively, and the plumbing and heating products distributor said it has implemented cost-saving measures such as suspending the US$500mln share buyback, pausing acquisitions, withdrawing the interim dividend and reducing full-year capital expenditure to US$280-300mln.
In May, the group sold its investment in Swiss engineering company Meier Tobler for US$31mln completing the exit from all its trading operations in continental Europe, as part of its strategy to focus on North American markets.
Ferguson's net debt as at April 30 was US$1.8bn, with US$1.3bn in cash and US$1.8bn of undrawn facilities. Overall in the quarter, Ferguson's revenue rose by 1% to US$4.7bn with underlying trading profit down 1% to US$334mln.
Ferguson shares rose 2% to 6,096p.
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