TIDMFERG
RNS Number : 9500T
Ferguson PLC
24 July 2020
24 July 2020
FERGUSON PLC
TRADING UPDATE
Ferguson is announcing today a pre-close period update on the
trading for the period from 1 May 2020 to 21 July 2020 which
includes a further update on the impact of the COVID-19
outbreak.
Protecting our associates
Our immediate priority remains to safeguard the health and
wellbeing of our associates and customers. Since May, we have
reopened all of our customer facing locations where it is safe to
do so and in adherence with guidance given by state and local
government authorities. This has included:
-- Allowing customers to transact inside at our trade counters
in specified locations with additional protective measures in
place.
-- Reopening our showroom network with enhanced social
distancing requirements.
-- New signage, reconfigured workspaces and altered schedules to
encourage social distancing.
-- Health assessments and temperature checks in hot spot
locations, in particular across our supply chain network.
-- Maintaining hygiene and implementing sanitization protocols
at all sites recommended by the CDC including disinfecting customer
high-touch surface areas regularly.
Current trading
Group trading in the period from 1 May 2020 to 21 July 2020 has
improved steadily since April with revenue trends through May, June
and July sequentially improving. Further details of the financial
performance and market conditions in the Group's businesses are set
out below:
Revenue growth % % revenue April 2020(2) 1 May 2020
contribution(1) to 21 July
2020 (2)
----------------------- ---------------- ------------- -----------
USA 88% (9.3%) (0.6%)
Canada 5% (33.6%) (8.0%)
----------------------- ---------------- ------------- -----------
Ongoing Group 93% (10.5%) (1.1%)
----------------------- ---------------- ------------- -----------
UK (non-ongoing) 7% (60.2%) (29.1%)
----------------------- ---------------- ------------- -----------
Continuing operations 100% (15.3%) (3.6%)
----------------------- ---------------- ------------- -----------
(1) During period from 1 May 2020 to 21 July 2020.
(2) Number of trading days was the same in the current and prior
year period.
In the US, our counter locations were open by mid-June. We
continue to encourage customers to use our e-commerce tools where
possible and customer adoption rates have been very strong during
the pandemic with increased user activity of our mobile experience
for trade customers. While showrooms continue to operate virtual
appointments, all of our bricks and mortar sites are now open for
pre-booked appointments only. We are rapidly putting in place
measures to support walk-in customers and to date about 50 per cent
of the network has been converted.
Blended Branches revenue declined 4.6 per cent in the period
from 1 May 2020 to 21 July whilst Waterworks and HVAC grew by 1.8
per cent and 12.7 per cent respectively. Our standalone eBusiness
continued to grow well with revenues 30.4 per cent ahead of last
year.
Revenue trends have improved in both Canada and the UK as
widespread lockdown restrictions have started to be eased. In the
UK recent revenue trends have been more encouraging as lockdown
measures have been eased.
We also continue to implement cost reduction measures across the
businesses to ensure we are well positioned for the medium-term
operating environment.
Robust financial position
Ferguson remains in a strong financial position with long-term
committed debt facilities. We expect the ratio of net debt to the
last 12 months adjusted EBITDA to be below 1.0 times as at 31 July
2020.
Kevin Murphy, Group Chief Executive, commented
"Despite the challenges of COVID-19, our trading improved in the
fourth quarter driven by the commitment of our associates to serve
our customers and as we re-opened our counter and showroom
locations. Safeguarding the health and wellbeing of our associates
and customers remains critical and we continue to follow
appropriate CDC guidelines.
"Our actions to reduce the cost base will ensure that the
business is better positioned for the medium-term economic
environment. Ferguson has a strong balance sheet with good
liquidity and the Group remains well positioned to deliver
consistent outperformance."
For further information, please contact:
Ferguson plc
Mike Powell, Chief Financial Officer +44 (0) 118 927 3800
Mark Fearon, Director of Communications
and IR +44 (0) 7711 875070
Media Enquiries
Mike Ward, Head of Corporate Communications +44 (0) 7894 417060
Nina Coad / David Litterick (Brunswick) +44 (0) 20 7404 5959
Notes to editors:
1. Ferguson plc is a value-added distributor of plumbing and
heating products to professional contractors principally operating
in North America and the UK. 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 .
2. Legal disclaimer
Certain information included in this announcement is
forward-looking and involves known and unknown risks, assumptions
and uncertainties that could cause actual results or outcomes to
differ from those expressed or implied in any forward-looking
statement. There forward-looking statements are based on the
Company's current belief and expectations about future events and
cover all matters which are not historical facts and include,
without limitation, projections relating to results of operations
and financial conditions and the Company's plans and objectives for
future operations, including, without limitation, discussions of
expected future revenues, financing plans, prospects, growth,
strategies, expected expenditures and divestments, risks associated
with changes in economic conditions, the strength of the plumbing
and heating market in North America and Europe, fluctuations in
product prices and changes in exchange and interest rates.
Forward-looking statements are sometimes identified by the use of
forward-looking terminology, including terms such as "believes",
"estimates", "continues", "anticipates", "expects", "forecasts",
"intends", "plans", "projects", "goal", "target", "aim", "may",
"will", "would", "could" or "should" or, in each case, their
negative or other variations thereon or comparable terminology.
Forward-looking statements are not guarantees of future performance
and actual events or results may differ materially from any
estimates or forecasts indicated, expressed or implied in such
forward looking statements. All forward-looking statements in this
announcement are based upon information known to the Company on the
date of this announcement. Accordingly, no assurance can be given
that any particular expectation will be met and readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as at the date of this announcement.
Additionally, forward-looking statements regarding past trends or
activities should not be taken as a representation that such trends
or activities will continue in the future. Other than in accordance
with applicable law, (including under the UK Listing Rules, the
Prospectus Rules, the Disclosure Guidance and the Transparency
Rules of the Financial Conduct Authority), the Company undertakes
no obligation to update publicly or revise any forward-looking
statement, whether as a result of new information, change in events
or otherwise. Nothing in this announcement shall exclude any
liability under applicable laws that cannot be excluded in
accordance with such laws.
-ends-
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END
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