Two FTSE 100 companies from here who are doing rather well over there — as the late industrialist Lord Hanson might have said — have made strong recoveries from the pandemic in the booming US construction sector.
Ashtead, the plant and machinery rentals business, reported operating profits up 38 per cent to $1.05 billion in the six months to the end of October as revenues increased by nearly a fifth to $3.88 billion. It is increasing its interim dividend by 28 per cent.
Ferguson, the plumbing, heating and air conditioning company that used to be called Wolseley, reported operating profits in the first quarter of its financial year to the end of October of $739 million up 58 per cent, on revenues up by 26 per cent at $6.8 billion.
The updates took shares of both companies to or near record peaks
Ferguson pushed to a record high, 5.9 per cent of 685p higher at £122.55, valuing the group at £26 billion.
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Ashtead also climbed toward a new high point, up 184p, or 3 per cent, to £63.82, valuing the business at £28 billion.
Ashtead was founded as a tool hire business in the Surrey village of the same name after the Second World War. It expanded aggressively into the US in the 1990s where it now does 90 per cent of its work.
Wolseley was originally a motoring marque from the dawn of the automotive age before becoming a wider engineering group. It expanded into the US in the 1980s via its largest acquisition, which was of Ferguson, a business that became so much the driving force of the group that it changed its name. Wolseley UK was sold off to private equity this year.
