Results and Financials

Results and Financials
Our UK and Irish merchanting businesses have benefited from an improved market backdrop which, combined with our organic growth plans, means the Group is well placed to build on its strong first half performance.
  • Financial Highlights
  • Income Statement
  • Balance Sheet
  • Cash Flow Statement
  • Five Year Summary

  • 2013 Financial Results

    Grafton Group plc announced its 2013 Final Results, on Wednesday, 05 March 2014, at 07:00 (BST).

    The following information was released on the day.



     
    2013
    £'m
     
    2012*
    £'m
     
     
    % change
    Revenue 1,900 1,761 +8%
    Underlying      
    (Before pension credit and property impairment in 2013 and before restructuring costs and amortisation in 2012)      
    Operating profit 77.2 61.0 +27%
    Profit before tax 64.9 48.1 +35%
    Profit after tax 51.7 35.0 +48%
    Adjusted earnings per share - basic 22.3p 15.1p +48%
    Statutory
    Operating profit 80.0 37.9 +111%
    Profit before tax 67.7 25.1 +170%
    Profit after tax 62.1 31.6 +96%
    Earnings per share - basic 26.8p 13.6p +97%
    Dividend 8.5p 7.0p +21%
    Net debt 133.7 164.9 -19%
    Total equity 874.3 817.6 +7%

    * Restated as required by IFRS following the adoption of IAS 19 (Revised) 'Employee Benefits'.

    Historical Results Comparisons

    • Turnover (£'m)
    • Adjusted EPS
      (£ pence)
    • Adjusted EBITDA (£'m)
    • Operating Profit (£'m)
    • Dividend per share
      (£ pence)


  • Group Condensed Income Statement for the year ended 31 December 2013



    Continuing activities



    Notes


    2013
    £'000

    Restated*
    2012
    £'000
    Revenue 2 1,899,768 1,760,779
    Operating costs 3 (1,849,717) (1,722,856)
    Operating income 3 29,964 -
    Operating profit   80,015 37,923
    Finance expense 4 (13,660) (14,664)
    Finance income 4 1,366 1,801
    Profit before tax   67,721 25,060
    Income tax 16 (5,622) 6,583
    Profit after tax for the financial year   62,099 31,643
    Profit attributable to:      
    Owners of the Company   62,179 31,643
    Non-controlling interests 8 (80) -
    Profit after tax for the financial year   62,099 31,643
           
    Earnings per ordinary share - basic 5 26.79p 13.64p
    Earnings per ordinary share - diluted 5 26.67p 13.64p
    * IAS 19 (Revised) ‘Employee Benefits’ has been adopted as required by IFRS for the year ended 31 December 2013. The comparatives for the year ended 31 December 2012 have been restated (refer to note 20).
  • Group Condensed Balance Sheet as at 31 December 2013

     
     


    Notes
    31 Dec 2013
    (Audited)
    £'000
    31 Dec 2012
    (Audited)
    £'000
    ASSETS      
    Non-current assets      
    Goodwill 15 481,020 476,166
    Property, plant and equipment 9 413,401 458,335
    Investment properties 9 19,861 -
    Deferred tax assets   17,666 26,877
    Retirement benefit assets 13 718 -
    Derivative financial instruments 11 835 2,196
    Other financial assets   124 144
    Total non-current assets   933,625 963,718
    Current assets      
    Inventories 10 246,220 249,332
    Trade and other receivables 10 307,822 271,303
    Derivative financial instruments 11 835 1,097
    Cash and cash equivalents 11 151,099 128,027
    Properties held for sale 9 11,352 14,452
    Total current assets   717,328 664,211
    Total assets   1,650,953 1,627,929
           
    EQUITY      
    Equity share capital   8,302 8,283
    Share premium account   206,554 204,614
    Capital redemption reserve   621 621
    Revaluation reserve   13,978 20,660
    Shares to be issued reserve   2,875 2,072
    Cash flow hedge reserve   98 (350)
    Foreign currency translation reserve   66,346 64,262
    Retained earnings   575,419 517,239
    Treasury shares held   (3,897) (3,897)
    Equity attributable to owners of the Company   870,296 813,504
    Non-controlling interests 8 4,051 4,131
    Total equity   874,347 817,635
           
    LIABILITIES      
    Non-current liabilities      
    Interest-bearing loans and borrowings 11 272,610 272,991
    Provisions   22,663 25,285
    Retirement benefit obligations 13 7,840 51,391
    Derivative financial instruments 11 - 32
    Deferred tax liabilities 16 30,746 36,056
    Total non-current liabilities   333,859 385,755
    Current liabilities      
    Interest-bearing loans and borrowings 11 13,863 22,700
    Trade and other payables 10 410,011 383,160
    Current income tax liabilities 16 8,201 11,056
    Derivative financial instruments 11 33 481
    Provisions   10,639 7,142
    Total current liabilities   442,747 424,539
    Total liabilities   776,606 810,294
    Total equity and liabilities   1,650,953 1,627,929
  • Group Condensed Cash Flow Statement for the year ended 31 December 2013

     
     
     
     




    Notes
     
    Twelve Months
    to 31 Dec 2013
    (Audited)
    £'000
    Restated*
    Twelve Months
    to 31 Dec 2012
    (Audited)
    £'000
    Profit before taxation   67,721 25,060
    Finance income   (1,366) (1,801)
    Finance expense   13,660 14,664
    Operating profit   80,015 37,923
           
    Depreciation 9 31,463 32,048
    Intangible amortisation   - 1,817
    Share-based payments charge   1,396 618
    Non-cash movement in operating provisions   1,717 761
    Claims paid on insurance and other provisions   (4,875) (2,462)
    Non-cash movement on asset impairment   27,160 1,980
    Profit on sale of property, plant and equipment 9 (718) (433)
    Non-cash decrease in pension liabilities (net of pension provision)   (29,964) -
    Contributions to pension schemes in excess of IAS 19 charge 13 (4,320) (5,054)
    (Increase)/decrease in working capital 10 (6,607) 18,540
    Cash generated from operations   95,267 85,738
    Interest paid   (12,025) (13,367)
    Income taxes paid   (6,321) (3,279)
    Cash flows from operating activities   76,921 69,092
           
    Investing activities      
    Inflows      
    Proceeds from sale of property, plant and equipment 9 2,184 1,976
    Sale of financial assets   20 -
    Interest received   753 1,664
        2,957 3,640
    Outflows      
    Acquisition of subsidiary undertakings and businesses 14 (4,032) (14,760)
    Net cash acquired with subsidiary undertakings   - 4,204
    Deferred acquisition consideration paid   (1,889) (1,646)
    Purchase of financial assets   - (7)
    Purchase of property, plant and equipment 9 (24,670) (22,974)
        (30,591) (35,183)
    Cash flows from investing activities   (27,634) (31,543)
           
    Financing activities      
    Inflows      
    Proceeds from the issue of share capital   1,959 383
    Proceeds from borrowings   34,407 20,887
        36,366 21,270
    Outflows      
    Repayments of borrowings   (34,282) -
    Dividends paid 6 (17,684) (14,698)
    Movement on finance lease liabilities   (570) (521)
    Redemption of loan notes payable net of derivatives   (11,124) (28,262)
        (63,660) (43,481)
           
    Cash flows from financing activities   (27,294) (22,211)
    Net increase/(decrease) in cash and cash equivalents   21,993 15,338
    Cash and cash equivalents at 1 January   128,027 112,431
    Effect of exchange rate fluctuations on cash held   1,079 258
    Cash and cash equivalents at the end of the year   151,099 128,027
    * IAS 19 (Revised) 'Employee Benefits' has been adopted as required by IFRS for the year ended 31 Dec 2013. The comparatives for the year ended 31 December 2012 have been restated (refer to note 20).
  •   2013 2012 2011 2010 2009
    Results (£'m)          
    Revenue 1,899.8 1,760.8 1,782.5 1,719.4 1,763.8
               
    Operating profit 80.0 37.9 19.7 28.3 4.4
    Finance (expense)/ income (net) (12.3) (12.9) (10.8) (6.4) 7.7
    Profit before tax 67.7 25.0 8.9 21.9 12.1
    Taxation (5.6) 6.6 (6.7) 33.0 (0.2)
    Profit after tax 62.1 31.6 2.2 54.9 11.9
               
    Cashflow          
    Cash generated from operations 95.3 85.7 84.1 82.1 121.8
               
    Balance Sheets (£'m)          
    Capital employed          
    Goodwill and intangibles 481.0 476.2 474.9 479.7 489.3
    Property, plant and equipment 413.4 458.3 471.9 489.6 537.1
    Financial assets 0.1 0.2 0.1 3.4 3.5
    Net current assets * 136.5 133.7 121.2 122.2 122.6
    Other net non-current liabilities (23.0) (85.9) (58.4) (22.8) (56.4)
      1,008.0 982.5 1,009.7 1,072.1 1,096.1
               
    Financed as follows:          
    Shareholders' equity 870.3 813.5 821.0 852.5 809.7
    Non-controlling interest 4.0 4.1 - - -
    Net debt/(cash) 133.7 164.9 188.7 219.6 286.4
      1,008.0 982.5 1,009.7 1,072.1 1,096.1
               
    Performance Ratios          
    Net debt to shareholders' equity (%) 15% 20% 23% 26% 35%
    Current liabilities to current assets (%) 62% 64% 68% 72% 62%
    Net finance cost cover on EBITDA (times) 8.8 8.7 7.9 12.7 5.5
               
    Per ordinary share (£ pence)          
    Basic EPS 26.8 13.6 0.9 23.7 5.2
    Adjusted EPS ** 22.3 15.1 13.4 15.9 4.8
    Dividend/share purchase per share 8.5 7.0 6.5 6.0 4.5
    Net assets per share 374.4 350.6 354.1 368.5 351.0
    Dividend/share purchase cover (times) 2.6 2.2 2.1 2.6 1.1
    * Excluding net debt/(cash)
    ** Before pension credit and property impairment in 2013 and before restructuring costs and intangible amortisation in 2012 and taxation credits in both years; In previous years before restructuring costs (net), onerous lease provision and impairment, taxation credit in 2010 and investment profit in 2009.



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