Grafton Group ‘resilient’ despite profit losses

The building materials supplier and DIY retailer saw a healthy increase in revenue but a decrease in profits for the six months to 30 June 2023, adding the Group had given a ‘resilient performance despite challenging distribution markets’.  

Volumes were lower across the Group’s distribution businesses, it added. 

Highlights 

• Revenue: £1.189 million (H1 2022: £1.153 million) 
• Adjusted operating profit: £105.1 million (H1 2022: £151.1 million) 
• Operating profit: £94.3 million (H1 2022: £140.1 million) 
• Adjusted profit before tax: £104.3 million (H1 2022: £143.4 million) 
• Profit before tax: £93.6 million (H1 2022: £132.4 million) 
• Net cash: £438.4 million (before IFRS 16 lease liabilities)   

Basic earnings per share were valued at 34.2 pence, compared to 45.8 pence the previous year. 

The interim dividend was valued at 10 pence (H1 2022: 9.25 pence).  

£132.7 million was returned to company shareholders in dividend payments and share buybacks. 

The Group reported cashflow of £191.3 million, from its operations. 

“The strength of the Group’s market positions and our experienced management teams have underpinned a resilient performance in the face of challenging conditions during the first half,” said Eric Born, CEO.   

“Grafton’s robust cash generation has enabled us to return £132.7 million to shareholders in the half year by way of share buybacks and dividends whilst leaving our net cash position broadly unchanged.   

“This strong balance sheet, together with our nimble operating structure, will allow us to take advantage of organic and acquisitive growth opportunities.”   

Adding: “Whilst uncertainties remain in the short term, we are confident that Grafton is exceptionally well positioned to benefit as the cycle turns, markets normalise and consumer confidence gains momentum.” 

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