Chairman’s statement

Navigating exceptional times while protecting the business for the long term

I am delighted to have been given the opportunity to join the Board of Ferguson as Chairman and what an extraordinary time to have started in this role. As I joined last May I was struck by many qualities about the business with its very strong customer-centric culture, the energy and commitment of the Ferguson associates and the excellent leadership team focused on driving performance. The rapid, effective and caring response to the COVID-19 pandemic, the impact of which began to be felt in March, has shone a light more than ever on these qualities. Above all else this year, I have been struck by the unwavering commitment of Ferguson’s 34,000 associates, who despite the challenges of the virus have steadfastly committed to keeping our customers running, many of whom provide critical services keeping millions of homes and businesses functioning. On behalf of the Board I would like to express our sincere thanks to them and recognize their outstanding contribution to our success.

Over the past six months the ongoing impact of COVID-19 has been significant and has had a profound impact on all our lives and will do so for some time to come. As for all organizations, the pandemic has caused a significant shift in the way Ferguson operates and brings into play significant risks and challenges. We have an experienced management team that has a strong track record of dealing with incidents and to tackle this crisis they have set up response teams to ensure we keep the core business operating and protect the health and wellbeing of our colleagues and customers.

The Board receives regular updates from the Executive team on the provision of core services, how we are supporting colleagues and the community, and the mitigation of the risks to our business. You can read more about our response to the COVID-19 pandemic in Kevin Murphy’s Chief Executive’s review. The Board has also carefully considered and monitored the potential economic impacts of COVID-19, in particular financing and liquidity. Ferguson has a proven cash generative business model and entered this period of high uncertainty with a strong balance sheet and significant liquidity headroom. Mike Powell provides a detailed overview of this in his Financial review on pages 26 to 29. Additional detail also can be found in our viability statement on pages 54 to 55 and our principal risks on pages 53 to 59.

“Above all else this year, I have been struck by the unwavering commitment of Ferguson’s 34,000 associates, who despite the challenges of the virus have steadfastly committed to keeping our customers running, many of whom provide critical services keeping millions of homes and businesses functioning.”