Ferguson trading update boosts shares

Shares in FTSE 100 plumbing supplies business Ferguson (LON:FERG) rose by 2.18% to 7,024p (as of 12:55 BST) after it saw a solid recovery in trading during May, June, and July. Revenue trends have continued to improve as lockdowns eased in the US, Canada, and the UK but cost control measures are still being implemented to improve medium-term performance.

CEO Kevin Murphy 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“.