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Ferguson and Polypipe banking on stimulus measures

Both groups are well set from any increase in central government infrastructure spending
Ferguson and Polypipe banking on stimulus measures

 

  • Sales supported by a relatively robust residential market in the US
  • Prospects linked to continued UK government support for the housing market

With balance sheets repaired, Polypipe (PLP) and Ferguson (FERG) aim to cash in on infrastructure spending both here and in the US.

There was a genuine sense of positive anticipation in the results for both US-focused plumbing supply company Ferguson, formerly Wolseley, and its industrial counterpart Polypipe, the latter of which will change its name to Genuit Group from April. The reason for the outbreak of optimism is that both companies have largely completed a process of restructuring and balance sheet repair and aim to benefit from the splurge on infrastructure spending that governments on both sides of the Atlantic have promised, though each has a slightly different emphasis.

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