We have progressively focused more resources on our business in the USA where we generate the most attractive returns for our shareholders.
The US business operates primarily under the Ferguson brand and is a value added distributor of plumbing and heating products in the USA. It operates nationally, serving the residential, commercial, civil and industrial end markets. Ferguson predominantly serves the Repair, Maintenance and Improvement (RMI) markets, with relatively low exposure to the new construction market.
Ferguson operates 1,470 branches serving all 50 states with approximately 28,000 associates. The branches are served by 10 distribution centers, providing same-day and next-day product availability, a key competitive advantage and an important requirement for customers.
Our operations and associate expertise align with the nine customer groups where we predominantly serve trade customers. By differentiating between the customer types, we are able to provide bespoke services and better cater to specific requirements. Each group has its own set of competitors that range from large national companies, including trade sales by large home improvement chains, to small, privately owned distributors. In line with the Group’s strategy the business aims to strengthen its position in existing and adjacent markets through bolt-on acquisitions.
Underlying trading profit