Grafton Group Plc (LON:GFTU) has today announced its half year report for the six months ended 30 June 2019.
· Revenue up 2% to £1.4 billion – 3% increase in constant currency
· Further positive progress towards medium term pre IFRS 16 financial objectives with adjusted operating margin increasing by 20 bps to 6.8% (2019 reported 7.2%) and ROCE up by 100bps to 15.0%
· Strong organic growth in Merchanting and Retailing businesses in Ireland
· Good growth in Netherlands and scale of business increased with Polvo acquisition
· Operating profit margin ahead in UK merchanting business in a softer market
· Conditional agreement to exit the Belgium business announced today – business reclassified as held for sale / discontinued operation
· Strong pre-IFRS 16 cash flow from operations of £118.9 million (2018: £109.7 million) (2019 reported £157.6 million)
· 8% increase in dividend in line with progressive dividend policy
· IFRS 16 applies from 1 January 2019 – implementation of accounting standard has a significant impact on the measurement and presentation of the financial statements but no economic impact on the Group.
Gavin Slark, Grafton Group Chief Executive Officer commented:
“We made good strategic and operational progress in the first half of 2019 which supports the ongoing improvement in the underlying quality of our business. Despite the uncertainty in the U.K., the Group continues to benefit from the strength of Selco’s market position and our higher returning, growth businesses in Ireland and The Netherlands. Our focus remains on delivering growth in shareholder value and a great experience for our customers and colleagues.”
A results presentation for analysts and fund managers will be hosted by Gavin Slark and David Arnold today 30 August 2019 at 9.30 am (GMT) at the London Stock Exchange, 10 Paternoster Square, London EC4M 7LS. The results presentation can be viewed/downloaded at www.graftonplc.com and a live webcast of the results presentation can be accessed on www.graftonplc.com/webcasthy19. A recording of this webcast will be available for replay later today on the Group’s website.