FTSE rises as Ferguson sees profits top up

Market report Emma Newlands

Soaring shares from Ferguson gave the London market a leg-up after the plumbing supplier unveiled a healthy boost to profits.

Ferguson, which has 1.1 million customers, saw annual pre-tax profits surge 75 per cent to £1.2 billion, thanks to strong growth from its revamped US operation.

The FTSE 100 Index closed up 29.27 points at 7,468.11, with the group – formerly known as Wolseley – also hiking its dividend and rewarding investors with a £500 million share buyback. The group finished up as the biggest riser on the top flight, climbing 196p to 5,060p.

On the currency markets, the pound slipped 0.2 per cent against the US dollar at $1.325 and was 0.4 per cent lower versus the euro at €1.126.

Sterling was already struggling when a dismal economic update from the UK construction industry compounded its misery. Focusing on UK stocks, Coca-cola HBC was among the biggest fallers following the death of its chief executive Dimitris Lois. Michalis Imellos will continue serving as acting CEO of the firm and shares were down 36p to 2,521p.

On the second tier, Greggs was enjoying a strong session after the sausage roll maker posted a significant lift in third-quarter sales in the 13 weeks to 30 September. Shares were up 17p to 1,267p.

The biggest risers on the FTSE 100 Index included Ashtead Group, up 59p to 1,851p, Sainsbury, up 7.8p to 247.5p, and International Consolidated Airlines Group ,up15p to 622.5p. The biggest fallers included Admiral, down 50p to 1,784p, WPP, down 29p to 1,364p, and Shire, down 57p to 3,852p. The sofa specialist rose after posting continued sales growth across all areas of the group for the third year in a row in the 12 months to 29 July. The car retailer, which in August reported a slowdown in profits amid a softening UK car market, saw its share price hit reverse.