Ferguson doubles buyback to $2bn as interim profits surge

Plumbing and heating products supplier Ferguson said it was doubling its share buyback to $2bn after interim profits rose by two-thirds driven by a strong US residential house building market.

The company reported adjusted core profits of $1.46bn, up 59.8%, as net sales rose 29.1% to $13.1bn for the six months to January 31. The interim dividend was lifted by 15% to 84 cents a share.

"Markets remain supportive and we anticipate solid revenue growth in the second half as we begin to lap tougher comparatives. We continue to be mindful that first half tailwinds on gross margin will likely moderate but we are confident in our full year expectations," said chief executive Kevin Murphy.

Ferguson, which started life as Wolseley in the UK, said it also expected to transfer its primary listing to the New York Stock Exchange on May 12 after shareholders approved the move last week.