- Plumbing group Ferguson said it expected to continue to outperform in the US market in the second half of the year after efforts to boost margin growth lifted annual profit.

For the 12 months to 31 July, statutory pre-tax profit rose 11.5% to $1.32m and revenue increased 6.1% to $22.0bn.

Against the backdrop of weaker market conditions across the USA in its fiscal second half, the company delivered ‘strong profit’ growth, supported by efforts to expand gross margins and control costs, Ferguson said,

Ongoing revenue grew 7.9% ahead of last year at constant currency, with US organic revenue growth up 6.2% amid continued market share gains.

The company proposed a final dividend of 145.1 cents, taking the total dividend to 208.2 cents, 10% ahead of last year.

‘The board expects to make further good progress in the year ahead. Whilst US market growth is currently broadly flat, consistent with the second half of 2019, we expect to continue to outperform,’ John Martin, Chief Executive.

‘Our order books support continued modest growth in the months ahead and our business is performing well. We remain focused on maximising our organic revenue growth rate, gross margin expansion, tight cost control and strong cash generation.’

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