Ferguson (LON: FERG) shares were among the biggest fallers in the FTSE 100 on Tuesday.
Shares in the plumbing supplies giant were down six percent despite the profit surge and bumper dividend.
The group reported a growth in profits by a third to $1.3 billion in the 12 months to July, which prompted shareholders receiving annual dividends worth $1.89 (146p) a share.
John Martin, Ferguson’s chief executive, said: “The variability of the August to September results is absolutely lost in the noise of the normal growth rates. There is nothing today which suggests this is the start of something unusual – of our 10 percent organic growth last year, some months were down 6 percent, some up 13 percent.”
The group reported growth in all divisions except the UK. Sales in the UK fell five percent and profits fell by a quarter after closing branches and selling the wholesale arm.
On whether Ferguson will sell the UK division, Martin said: “It’s a relatively decent scale business with a relatively decent market position. The underlying market has been weak but we do still generate decent returns on capital and we do think we can do a lot to improve this business.”
Shares in the group are currently trading down 6.16 percent at 6.127,00 (1311GMT).
