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16 Mar 2021 | 07:26

Ferguson in $400m share buyback as H1 profits rise

(Sharecast News) - Multinational plumbing and heating products distributor Ferguson reported a rise in half-year profits and announced a $400m share buyback but it warned of second-half supply chain pressures. The US-focused company, formerly known as Wolseley, said pre-tax profits for the six months to January 31 rose 17.7% to $739m on revenues of $10.3bn, up 4.2%.

A dividend of 72.9 cents a share was declared. Shareholders will also receive $400m as part of a 180 cent-a-share special payout from the sale of Wolseley UK.

Chief executive Kevin Murphy said Ferguson had continued to trade well since the start of the third quarter "generating high single digit organic revenue growth", but warned of supply chain pressures and increased transportation costs,

"While the outlook for the second half remains very uncertain, we expect to generate above market revenue growth in good residential markets aided by increasing inflation."

However, we expect this to be partially offset by increasing supply chain pressures, transportation costs and the reversal of temporary cost reduction actions taken during the initial stages of the lockdown starting in April of last year."
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