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Grafton Group reports 13% rise in revenue for 2016

Selco and staff 725 x 500

Grafton Group plc, the international builders merchanting and DIY Group, announces its final results for the year ended 31 December 2016.

Selco is once again the star performer with revenue topping £400m for the first time. As a result of their success, Selco will become a focus for Grafton Group investment in the coming year with an increase in new store openings, see below:-

 /live/news/wysiwyg/Selco 2017 new store investment.jpg

The full publication can be found on our Articles page, here.

The supporting presentation can be downloaded here.

£m*

 

2016

2015

Change

Revenue

 

2,507

2,212

13%

Adjusted**

 

Operating profit

 

142.0

127.3

12%

Operating profit before property profit

 

137.1

120.6

14%

Profit before tax

 

136.2

119.4

14%

Earnings per share - basic

 

47.7p

41.2p

16%

Statutory results

 

Operating profit

 

120.1

128.2

(6%)

Profit before tax

 

114.2

120.3

(5%)

Earnings per share - basic

 

39.6p

41.6p

(5%)

Dividend

 

13.75p

12.50p

10%

Net debt

 

96.3

113.6

(£17.3m)

EBITA margin before property profit

 

5.5%

5.5%

-

Return on capital employed

 

12.5%

12.2%

30bps

 *Additional information in relation to Alternative Performance Measures (APMs) is set out on pages 31 to 34.
**The term "adjusted" means before amortisation of intangible assets arising on acquisitions and exceptional items of £19.7 million in 2016 and non-recurring items in 2015.

Highlights                      

  • Revenue up 13% to a record £2.5 billion - 10% increase in constant currency, broadly split between organic growth and acquisitions
  • Adjusted Group operating profit growth of 12% to £142.0m (2015: £127.3m)
  • Strong organic growth in the Irish Merchanting, Woodie's DIY and Manufacturing businesses
  • Isero acquisition in the Netherlands contributed £9.1 million to operating profit, an EBITA margin of 10.4% and is a strong platform for expansion
  • Continued successful investment in Selco with the opening of seven branches and the planned opening of at least ten branches in 2017
  • Strong cash generation from operations of £168.6 million (2015: £139.3 million) resulting in net debt reduction by £17.3 million and year-end gearing of just 9%
  • Investment of £72.3 million on acquisitions and capital expenditure to support future growth
  • 10% increase in dividend in line with progressive dividend policy

 Gavin Slark, Chief Executive Officer commented: 

"2016 represented an overall strong financial performance despite challenging trading conditions in the traditional UK merchanting market. These results demonstrate the resilience of the Group's spread of businesses, with strong market positions and exposure to multiple geographies. While uncertainties remain about the UK economy, the recovery in the Irish and Netherlands markets is forecast to continue.  The Group's very cash generative operations and strong balance sheet leave it well positioned to invest in areas where we see good opportunities for growth."

Source :Grafton Group  PLC
www.graftonplc.com            

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07 March 2017

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