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Grafton Group Reports 9% Rise in Revenue

Grafton group staff 725 x 500.jpg

Grafton Group plc has reported its final results for the year ended 31 December 2018, advising of "excellent progress towards medium-term financial targets".

£m*

 

2018

2017

Change

Revenue

 

2,953

2,716

+9%

Adjusted**

 

Operating profit before property profit

 

189.6

160.9

+18%

Operating profit

 

194.5

163.7

+19%

Profit before tax

 

188.4

157.2

+20%

Earnings per share - basic

 

66.0p

54.9p

+20%

Statutory results

 

Operating profit

 

187.5

160.9

+17%

Profit before tax

 

181.3

154.5

+17%

Earnings per share - basic

 

63.3p

54.0p

+17%

Dividend

 

18.0p

15.50p

+16%

Net debt

 

53.1

62.9

(£9.8m)

Gearing

 

4%

5%

(100bps)

Adjusted operating margin

 

6.6%

6.0%

+60bps

Return on capital employed

 

15.0%

13.6%

+140bps

Highlights                      

·      Revenue up 9% to £2.95 billion - 8% growth in constant currency
·      Significant progress towards realising medium term financial objectives - operating profit margin up 60bps to 6.6% and ROCE up 140bps to 15.0%
·      Strong organic growth in Ireland and Netherlands Merchanting
·      12% increase in profit in UK Merchanting with significant contribution from Leyland SDM acquisition
·      Excellent performances in Woodie's Retailing in Ireland and Mortar Manufacturing in UK
·      Strong cash flow of £209.2 million generated from operations
·      16% increase in dividend - sixth consecutive year of double-digit growth

These record results demonstrate the benefit of the Group's market positions and exposure to multiple geographies with operating profit growth of 14 per cent in the UK, 25 per cent in Ireland and 27 per cent in the Netherlands.

Gavin Slark, Chief Executive Officer commented:    

"2018 was another year of strong delivery against our medium-term targets achieved through a combination of organic and acquisition led initiatives.  Grafton continues to benefit from exposure to the fast growing Irish and Dutch markets and from strong underlying demand fundamentals in the UK market. The Group's excellent cash generation from operations, good liquidity and strong balance sheet should continue to support the development of the business."

Learn more about the UK Merchanting business, including Selco, here

Learn more about the Retail Segment business, including Woodie's, here.

Source : Grafton Group Plc

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28 February 2019

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