Ferguson today announces that it intends to buy back up to $500 million of its shares over the next 12 months.
In line with its capital allocation priorities and reflecting management’s confidence in the business and the continuing strong cash generation of the Company, and after taking into account the excellent opportunities to invest in organic growth and acquisitions, the Board considers that the Company has surplus cash resources available.
The Company’s capital allocation priorities remain unchanged. Ferguson’s investment priorities remain focused on achieving organic growth that exceeds underlying market growth, funding the ordinary dividend through the cycle and investing in bolt-on acquisitions that meet our stringent investment criteria. The Board has a progressive dividend policy for future pay outs, with the aim of increasing dividends in line with the long-term underlying growth in earnings. Any surplus cash after meeting these investment needs will be returned to shareholders.
Ferguson has returned $4 billion of surplus cash to shareholders over the last 8 years and our balance sheet remains strong and the Company will continue to target net debt in the range of 1x to 2x EBITDA.
For further information please contact:
Mike Powell, Group CFO
Tel: +44 (0) 1189 273800
Mark Fearon, Director of Corporate Communications and IR
Mobile: +44 (0) 7711 875070
Mike Ward, Head of Corporate Communications
Mobile: +44 (0) 7894 417060
Nina Coad/David Litterick (Brunswick)
Tel: +44 (0) 20 7404 5959
Notes to editors
Ferguson plc is the world's largest specialist trade distributor of plumbing and heating products to professional contractors principally operating in North America. Ongoing revenue for the year ended 31 July 2019 was $21.8 billion and ongoing trading profit was $1.6 billion. Ferguson plc is listed on the London Stock Exchange (LSE: FERG) and is in the FTSE 100 index of listed companies. For more information, please visit www.fergusonplc.com or follow us on Twitter https://twitter.com/Ferguson_plc.