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Grafton Group Announce Full Year Results

Grafton Group

Earlier today, Grafton Group PLC announced their Final Results for the Year Ended 31 December 2019.

  Pre IFRS 16
£m120192201920183Change4
Revenue - total2,9242,9242,953(1%)
Revenue - continuing operations2,6722,6722,603+3%
Revenue - discontinued operations252252350(28%)
Adjusted5    
Operating profit - continuiung operations204.8194.3187.6+4%
Operating profit - discontinued operations6.55.46.9(23%)
Operating profit - all operations211.3199.7194.5+3%
     
Earnings per share - basic (continuing operations)62.8p66.0p63.7p+4%
Statutory results    
Operating profit - continuing operations197.8187.3180.5+4%
Profit before tax - continuing operations172.6181.8174.4+4%
Earnings per share - basic (continuing operations)60.5p63.7p60.9p+5%
Dividend19.0p19.0p18.0p+6%
Net debt/(cash)533.8(7.8)53.1(£60.9m)
Adjusted operating margin pre property profit7.4%7.0%7.0%-
Adjusted operating profit margin7.7%7.3%7.2%+10bps
Return on capital employed12.7%14.4%14.7%(30bps)

Highlights                       

  • Revenue in continuing operations up 3% to £2.7 billion - 2.9% growth in constant currency
  • Operating profit in continuing operations up 4% to £194.3 million on a pre-IFRS 16 basis
  • Strong organic growth in Merchanting and Retailing businesses in Ireland
  • Significant growth in profitability in Netherlands business and increase in scale with Polvo acquisition
  • Softer trading in UK merchanting business, particularly in H2 on weaker economy and RMI market
  • Reshaped our portfolio with successful disposal of Plumbase and Belgian Merchanting business
  • Strong pre-IFRS 16 cash flow from operations of £219.1 million (2018: £209.2 million) and net cash of £7.8m at year end
  • 6% increase in total dividend to 19.00p is consistent with progressive dividend policy
  • Implementation of IFRS 16 standard on accounting for leases has no economic impact on Group but has changed the measurement of many aspects of the Group’s accounts

Gavin Slark, Chief Executive Officer commented: 

“2019 saw growth in revenue, profitability and earnings per share alongside continuing progress in evolving and re-shaping our businesses to enhance our value proposition to our customers and drive sustainable growth for our shareholders.  Strong organic growth in our Merchanting and Retailing operations in Ireland and in the profitability of our Netherlands operations helped offset a challenging year in the UK due to political and economic uncertainty. The outlook for 2020 is of continuing but moderating growth in Ireland and the Netherlands and while reduced uncertainty may lead to some uplift in the UK RMI market, we remain cautious about the speed of any recovery. Given the strength of our brands we look forward to another year of progress for Grafton and with a strong balance sheet and rigorous financial discipline we are well placed to capitalise on growth opportunities.”

Source: Insight DIY Team & Grafton Group PLC.

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27 February 2020

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