(at constant exchange rates)
|Trading profit||Continuing operations||15,224||12,549|
|Impairment and exceptional profit / (loss)||229||(98)|
|Statutory profit before tax||1,180||675|
|Headline earnings per share||288.9p||234.7p||+23.1%||+6.8%|
|Discontinued (loss) / profit after tax||(105)||185
|Ordinary dividend per share||110p||100p||+10.0%|
John Martin, Group Chief Executive, commented:
“I am delighted to report another good year for the Group, in which ongoing trading profit increased to £1,032 million. In the USA, Blended Branches, Waterworks, B2C e-commerce, HVAC, Fire and Fabrication and Facilities Supply generated good growth and gained market share and Industrial revenues recovered in the second half.
“In line with our strategy to generate the best profitable growth in the USA we continued to invest in the further development of our service offerings including the next generation of our e-commerce platforms, expanding our fleet and logistics capabilities and developing adjacent business opportunities.
“Given our strong financial position, which includes proceeds from recent disposals, we are initiating a £500 million share buyback programme which we expect to complete over the next 12 months. The Group will continue to target net debt in the range of 1x to 2x EBITDA, consistent with investment grade credit metrics.
“US markets continue to be favourable, in particular residential and commercial markets where we generate the majority of our revenue. Organic revenue growth3 in the new financial year has been about 6%. Our business is performing well, we have a strong balance sheet to support our plans and the Board continues to look to the medium-term with confidence."
1) The Group uses Alternative Performance Measures (“APMs”), which are not defined or specified under IFRS, to provide additional helpful information. These measures are not considered to be a substitute for IFRS measures and are consistent with how business performance is planned, reported and assessed internally by management and the Board. For further information on APMs, including a description of our policy, purpose, definitions and reconciliations to equivalent IFRS statutory measures see note 2 on pages 13 to 15. Unless otherwise stated, the measures referred to in this Results Announcement are APMs which are applied consistently with the basis and definitions set out in note 2.
2) The total of continuing and discontinued operations.
3) The increase or decrease in revenue excluding the effect of currency exchange, acquisitions and disposals and trading days.
For further information please contact
Mike Powell, Group Chief Financial Officer
Tel: +41 (0) 41723 2230
Mark Fearon, Director of Corporate Communications and IR
Mobile: +44 (0) 7711 875070
Mike Ward, Head of Corporate Communications
Mobile: +44 (0)7894 417060
Michael Harrison, Charlie Pretzlik (Brunswick)
Tel: +44 (0)20 7404 5959
There will be an analyst and investor presentation at 0830 (UK time) today at The London Stock Exchange, 10 Paternoster Square, London EC4M 7LS. A live video webcast and slide presentation of this event will be available on www.fergusonplc.com. We recommend you register at 0815 (UK time). Photographs are available on www.fergusonplc.com.