Ferguson PLC (LON:FERG) has reported a return to sales growth and improved profits in the first quarter of its new financial year.
Revenues from ongoing business for the plumbers’ merchant formerly known as Wolseley amounted to US$5.4bn in the three months to end-October 2020, up 3.1% on the same period a year ago after a fall of 3.6% in the preceding quarter.
Underlying operating profits rose by 11.8% to US$504mln, which the FTSE 100 group put down to tight cost control.
The group, which gets almost 90% of its revenues from the US, said US ongoing revenues were up 3.2% and underlying trading profits grew 11.3%.
“Cash generation was good and our balance sheet remains strong,” said Ferguson chief executive Kevin Murphy in the trading statement. “This has enabled us to continue to invest in the business including our technology platforms.”
He noted Ferguson has, since the start of the second quarter, “continued to generate low single-digit revenue growth in broadly flat markets although we remain cautious on the outlook for the year as a whole, considering current pandemic trends”.