Ferguson sees beneficial impact from US tax cuts

Plumbing and heating company Ferguson said recent US tax cuts would provide a beneficial impact on the group's after tax earnings.

The company said it expected an effective tax rate of around 25% for the current year to 31 July 2018, from previous guidance of 28%.

“On an ongoing basis we expect the group's effective tax rate to be in the range 21% to 22%,” Ferguson said.

It added that cash tax payable in each year is expected to reduce broadly in line with the income statement reductions and there would be no material one-off charges or credits as a result of the change in tax rate.