StockMarketWire.com - Plumbing company Ferguson reported higher annual profit underpinned by cost cutting and higher revenue.

For the year ended July 31, 2021, pre-tax profit rose 46.4% to $1.89 billion as revenue increased 14.3% to $22.79 billion.

Gross margins of 30.6% were 60bps ahead of last year, driven primarily by 'our ability to service our customers while managing price inflation,' the company said.

The final dividend proposed was 166.5 cents per share, bringing total dividend to 239.4c per share, an increase of 15%.

Looking ahead, the company said a shareholder vote on its US primary listing plans, was slated for Spring 2022.

'We expect a year of good growth overall but we anticipate a tapering in the second half on tougher prior year comparatives,' the company said.

'We are mindful that the recent tailwinds from inflation on gross margins could moderate but for the full year ahead we expect operational improvements to broadly offset headwinds from inflation in the cost base.' Story provided by StockMarketWire.com