Results and Financials

Results and Financials
Revenue trends evolved broadly in line with the Group's expectation of a moderation in the rate of growth as the year progressed.  The Group anticipates reporting 2014 results consistent with current market expectations and enters 2015 in a robust position as it continues to execute its growth strategy.
  • Financial Highlights
  • Income Statement
  • Balance Sheet
  • Cash Flow Statement
  • Five Year Summary

  • 2014 Financial Results

    Grafton Group plc announced its 2014 Final Results, on Tuesday, 10 March 2015, at 07:00 (BST).

    The following information was released on the day.



     
    2014
    £'m
     
    2013
    £'m
     
     
    % change
    Revenue 2,082 1,900 +10%
    Underlying*
    Operating profit 110.1 77.2 +43%
    Profit before tax 101.2 64.9 +56%
    Profit after tax 80.0 51.7 +55%
    Adjusted earnings per share - basic 34.4p 22.3p +54%
    Statutory
    Operating profit 110.1 80.0 +38%
    Profit before tax 101.2 67.7 +50%
    Profit after tax 80.0 62.1 +29%
    Earnings per share - basic 34.4p 26.8p +28%
    Dividend 10.75p 8.5p +26%
    Net debt 75.3 133.7 -44%
    Total equity 906.3 874.3 +4%

    Return on capital employed 11.1% 7.8% +3.3% pts

    * The comparative performance for 2013 excludes a non-recurring pension credit of £30.0 million and a property impairment charge of £27.2 million.

    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 2014



    Continuing activities



    Notes


    2014
    £'000


    2013
    £'000
    Revenue 2 2,081,686 1,899,768
    Operating costs 3 (1,971,581) (1,849,717)
    Operating income 3 - 29,964
    Operating profit   110,105 80,015
    Finance expense 4 (9,857) (13,660)
    Finance income 4 997 1,366
    Profit before tax   101,245 67,721
    Income tax 17 (21,223) (5,622)
    Profit after tax for the financial year   80,022 62,099
    Profit attributable to:      
    Owners of the Company   80,046 62,179
    Non-controlling interests 8 (24) (80)
    Profit after tax for the financial year   80,022 62,099
           
    Earnings per ordinary share - basic 5 34.42 26.79p
    Earnings per ordinary share - diluted 5 33.99 26.67p
  • Group Condensed Balance Sheet as at 31 December 2014

     
     


    Notes
    31 Dec 2014
    (Audited)
    £’000
    31 Dec 2013
    (Audited)
    £’000
    ASSETS      
    Non-current assets      
           
    Goodwill 15 480,157 481,020
    Intangible assets 16 5,757 -
    Property, plant and equipment 9 423,411 413,401
    Investment properties 9 20,473 19,861
    Deferred tax assets   23,452 17,666
    Retirement benefit assets 13 125 718
    Derivative financial instruments 11 - 835
    Other financial assets   123 124
    Total non-current assets   953,498 933,625
           
    Current assets      
    Properties held for sale 9 9,581 11,352
    Inventories 10 249,906 246,220
    Trade and other receivables 10 302,871 307,822
    Derivative financial instruments 11 1,095 835
    Cash and cash equivalents 11 182,360 151,099
    Total current assets   745,813 717,328
           
    Total assets   1,699,311 1,650,953
           
    EQUITY      
    Equity share capital   8,309 8,302
    Share premium account   206,597 206,554
    Capital redemption reserve   621 621
    Revaluation reserve   13,822 13,978
    Shares to be issued reserve   7,834 2,875
    Cash flow hedge reserve   (36) 98
    Foreign currency translation reserve   58,005 66,346
    Retained earnings   610,998 575,419
    Treasury shares held   (3,897) (3,897)
    Equity attributable to owners of the Company   902,253 870,296
    Non-controlling interests 8 4,027 4,051
    Total equity   906,280 874,347
           
    LIABILITIES      
    Non-current liabilities      
    Interest-bearing loans and borrowings 11 244,305 272,610
    Provisions   20,855 22,663
    Retirement benefit obligations 13 33,085 7,840
    Derivative financial instruments 11 44 -
    Deferred tax liabilities 17 30,758 30,746
    Total non-current liabilities   329,047 333,859
           
    Current liabilities      
    Interest-bearing loans and borrowings 11 14,422 13,863
    Trade and other payables 10 425,696 410,011
    Current income tax liabilities 17 17,334 8,201
    Derivative financial instruments 11 - 33
    Provisions   6,532 10,639
    Total current liabilities   463,984 442,747
           
    Total liabilities   793,031 776,606
           
    Total equity and liabilities   1,699,311 1,650,953
  • Group Condensed Cash Flow Statement For the year ended 31 December 2014

     
     
     
     




    Notes
     
     
    31 Dec 2014
    (Audited)
    £’000
     
     
    31 Dec 2013
    (Audited)
    £’000
    Profit before taxation   101,245 67,721
    Finance income   (997) (1,366)
    Finance expense   9,857 13,660
    Operating profit   110,105 80,015
    Depreciation 9 32,392 31,463
    Amortisation of intangible assets 16 124 -
    Share-based payments charge   3,679 1,396
    Non-cash movement in operating provisions   2,670 1,717
    Claims paid on insurance and other provisions (6,774) (4,875)
    Non-cash movement on asset impairment/revaluation   246 27,160
    Profit on sale of property, plant and equipment   (2,345) (718)
    Non-cash decrease in pension liabilities (net of pension provision)   - (29,964)
    Contributions to pension schemes in excess of IAS 19 charge  13 (1,862) (4,320)
    Decrease/(increase) in working capital  10 21,804 (6,607)
    Cash generated from operations   160,039 95,267
    Interest paid   (8,963) (12,025)
    Income taxes paid   (10,445) (6,321)
    Cash flows from operating activities   140,631 76,921
    Investing activities      
    Inflows      
    Proceeds from sale of property, plant and equipment  9 5,155 2,184
    Interest received   699 753
    Sale of financial assets   - 20
        5,854 2,957
    Outflows      
    Acquisition of subsidiary undertakings and businesses  14 (34,835) (4,032)
    Net cash acquired with subsidiary undertakings 14 1,728 -
    Deferred acquisition consideration paid   - (1,889)
    Investment in intangible asset – computer software  16 (5,881) -
    Purchase of property, plant and equipment  9 (40,974) (24,670)
        (79,962) (30,591)
    Cash flows from investing activities   (74,108) (27,634)
    Financing activities      
    Inflows      
    Proceeds from the issue of share capital   50 1,959
    Proceeds from borrowings   56,454 34,407
        56,504 36,366
    Outflows      
    Repayment of borrowings   (57,316) (34,282)
    Dividends paid 6 (21,501) (17,684)
    Movement on finance lease liabilities   (721) (570)
    Redemption of loan notes payable net of derivatives   (11,408) (11,124)
        (90,946) (63,660)
    Cash flows from financing activities   (34,442) (27,294)
           
    Net increase in cash and cash equivalents   32,081 21,993
    Cash and cash equivalents at 1 January   151,099 128,027
    Effect of exchange rate fluctuations on cash held   (820) 1,079
    Cash and cash equivalents at the end of the year   182,360 151,099
  •   2014 2013 2012 2011 2010
    Results (£'m)          
    Revenue 2,081.7 1,899.8 1,760.8 1,782.5 1,719.4
               
    Operating profit 110.1 80.0 37.9 19.7 28.3
    Property profit     - - -
    Finance (expense)/ income (net) (8.9) (12.3) (12.9) (10.8) (6.4)
    Profit before tax 101.2 67.7 25.0 8.9 21.9
    Taxation (21.2) (5.6) 6.6 (6.7) 33.0
    Profit after tax 80.0 62.1 31.6 2.2 54.9
               
    Cashflow          
    Cash generated from operations 160.0 95.3 85.7 84.1 82.1
               
    Balance Sheets (£'m)          
    Capital employed          
    Goodwill and intangibles 485.9 481.0 476.2 474.9 479.7
    Property, plant and equipment 423.4 413.4 458.3 471.9 489.6
    Financial assets 0.1 0.1 0.2 0.1 3.4
    Net current assets * 112.8 136.5 133.7 121.2 122.2
    Other net non-current liabilities (40.6) (23.0) (85.9) (58.4) (22.8)
      981.6 1,008.0 982.5 1,009.7 1,072.1
               
    Financed as follows:          
    Shareholders' equity 902.3 870.3 813.5 821.0 852.5
    Non-controlling interest 4.0 4.0 4.1 - -
    Net debt/(cash) 75.3 133.7 164.9 188.7 219.6
      981.6 1,008.0 982.5 1,009.7 1,072.1
               
    Performance Ratios          
    Net debt to shareholders' equity (%) 8% 15% 20% 23% 26%
    Current liabilities to current assets (%) 62% 62% 64% 68% 72%
    Net finance cost cover on EBITDA (times) 16.1 8.8 8.7 7.9 12.7
               
    Per ordinary share (£ pence)          
    Basic EPS 34.4 26.8 13.6 0.9 23.7
    Adjusted EPS ** 34.4 22.3 15.1 13.4 15.9
    Dividend/share purchase per share 10.75 8.5 7.0 6.5 6.0
    Net assets per share 387.9 374.4 350.6 354.1 368.5
    Dividend/share purchase cover (times) 3.2 2.6 2.2 2.1 2.6
    * Excluding net debt/(cash)
    ** Before pension credit and property impairment in 2013 and before restructuring costs and intangible amortisation in 2012;
    onerous lease provision and impairment, restructuring costs (net), taxation credit in 2010 and investment profit in 2009.



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