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Grafton Group reports 'good progress' in half-year trading

Grafton Group logo 1 725 x 500

Grafton Group has reported on half-year trading, covering the six months ended 30th June 2016.

A summary of the report is below, and the full publication can be found here.  An accompanying presentation can also be found here.

* Revenue up 13% to £1.23 billion (12% in constant currency) – growth was broadly split between existing business and acquisitions

* Adjusted Group operating profit before property profit growth of 18% to £64.8m (2015: £55.1m) reflected strong contributions from Ireland, the recent acquisition of Isero in the Netherlands and Selco in the UK

* Adjusted Group operating margin before property profit increased by 20bps to 5.3%

* Ongoing investment in Selco store opening programme - 50% increase in store numbers expected in the three years to June 2017

* Robust cash generation from operations of £108.0 million (2015: £73.2 million)

* 6% increase in dividend in line with progressive dividend policy

* Investment of £40.1 million on acquisitions and capital expenditure in H1 to support future growth

* Challenging backdrop in UK merchanting market but organisational restructuring to provide sustainable benefits in 2017

*Net debt of £95.7m was £17.9m lower than at 31 December 2015 resulting in gearing of 9%

Gavin Slark, Grafton Group CEO said:

"Despite the more uncertain and competitive market conditions in the UK, Grafton continued to make good progress in its key markets enabling the Group to record revenue, profit and earnings per share growth as well as strong cash generation. Both Ireland and the Netherlands continue to show strong growth with ongoing development opportunities. Grafton will continue to invest in areas of its business which combine good long term growth prospects and the opportunity to improve the Group’s operating margin and return on capital employed." 

Source : Grafton Group

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31 August 2016

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