Plumbing equipment supplier Ferguson points to a challenging UK market in the last quarter, but the firm’s European and US business helped boost profits.
The group, formerly known as Wolseley, reported a 10% rise in revenue to £3.8bn in the three months to October 31, while trading profit was up 14% to £293m.
But in the UK, despite revenue growing 3.4% to £506 million, profit was 3.8% lower at £15.6m.
This contrasted to the US, Canada and Central Europe, where profits rose.
Ferguson said that the sales growth in the UK was largely down to price inflation, which has rocketed since the value of the pound collapsed following the EU referendum.
“Gross margins were lower in competitive markets as customers resisted supplier price rises. Repair, maintenance and improvement markets remained weak,” the firm said.
Chief executive John Martin added: “Our business continued to grow well in our first quarter with strong organic growth in the US.
“Growth in Canada was also strong, though market conditions remain challenging in the UK where we are continuing to implement our transformation programme.”
Earlier this year, Ferguson agreed to sell its Nordic building materials business to US private equity firm Lone Star Funds for £885m.
The group’s name change from Wolseley in July was part of efforts to focus more on the US, where it makes the bulk of its revenue and trades as Ferguson.
The company’s share price was up 0.99% in early morning trading to 5502.