Ferguson Enterprises’ parent company, Ferguson plc, the world’s largest specialist trade distributor of plumbing and heating products, announced its financial results for the first half of fiscal year 2020. Highlights include the following:

• Ongoing revenue 4.3 percent ahead of last year with continued market share gains in the United States
• U.S. revenue growth of 5 percent and underlying trading profit growth of 5.7 percent
• Good gross margin and cost control ensured trading profit growth outpaced revenue growth
• Good operating cash generation and the group has a strong balance sheet and liquidity position
• Interim dividend of 67.5c up 7 percent
• Invested $141 million in acquisitions in the first half, including S.W. Anderson, and since the end of the period, Columbia Pipe and Supply
• Board expects to make a further announcement on listing assessment later in the spring of 2020
• U.K. demerger on track for completion this calendar year

“Our focus has remained on serving our customers and making their projects more successful because they worked with Ferguson," said Group Chief Executive Kevin Murphy. "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. This, alongside continued operational delivery including tight cost control, ensured we delivered robust trading profit growth and good cash generation.

“In response to the outbreak of the Coronavirus (COVID-19) in recent weeks the Company is taking steps to mitigate any potential impacts. We are following the guidance of governmental health agencies including the World Health Organization and the Center for Disease Control. Our immediate priority is safeguarding the health and wellbeing of our associates, supporting our business and customers and helping the communities in which we operate.

“Given the strength of our first half results, we had intended to confirm our full-year trading profit outlook for 2020. However, due to the dynamic situation unfolding with COVID-19 it is too early to understand its impact on current trading. 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. Ferguson remains well positioned for long-term success operating in attractive and fragmented markets with a robust business model and backed by a strong balance sheet and liquidity position.”

For the full announcement, visit the Ferguson plc website.