Results and Financials

Results and Financials
As anticipated, the growth in the UK market continues to moderate from the first half and the Irish Merchanting business is showing a marked improvement from a very low base. The overall outlook continues to be positive and the Group remains on course to report full year operating profit in line with its expectations.
  • Financial Highlights
  • Income Statement
  • Balance Sheet
  • Cash Flow Statement
  • Five Year Summary

  • 2014 Interim Results

    Grafton Group plc announced its 2014 Interim Results, on Wednesday, 27 August 2014, at 07:00 (BST).

    The following information was released on the day.



     
    2014
    £'m
     
    2013
    £'m
     
     
    % change
    Revenue 1,015 912 +11%
    Underlying*      
    Operating profit 50.6 31.2 +62%
    Profit before tax 45.9 24.5 +88%
    Profit after tax 35.8 18.6 +93%
    Adjusted earnings per share - basic 15.39p 8.02p +92%
    Statutory
    Operating profit 50.6 58.2 -13%
    Profit before tax 45.9 51.5 -11%
    Profit after tax 35.8 40.6 -12%
    Earnings per share - basic 15.39p 17.50p -12%
    Dividend 3.75p 3.00p +25%
    Net debt 101.1 149.8 -33%
    Total equity 881.9 860.4 +2%
    Return on capital employed 10.2% 6.3% +3.9%pts

    * The comparative performance for 2013 excludes a non-recurring pension credit of £27.1 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 six months ended 30 June 2014



    Continuing activities



    Notes


    2014
    (Unaudited)
    £'000


    2013
    (Unaudited)
    £'000
    Revenue 2 1,015,291 912,228
    Operating costs 3 (964,708) (881,068)
    Operating income 3 - 27,051
    Operating profit   50,583 58,211
    Finance expense 4 (5,421) (8,142)
    Finance income 4 774 1,426
    Profit before tax   45,936 51,495
    Income tax 16 (10,088) (10,933)
    Profit after tax for the financial period   35,848 40,562
    Profit attributable to:      
    Owners of the Company   35,784 40,597
    Non-controlling interests 8 64 (35)
    Profit after tax for the financial period   35,848 40,562
           
    Earnings per ordinary share - basic 5 15.39p 17.50p
    Earnings per ordinary share - diluted 5 15.32p 17.45p
  • Group Condensed Balance Sheet as at 30 June 2014

     
     


    Notes
    30 June 2014
    (Unaudited)
    £’000
    30 June 2013 (Unaudited)
    £’000
    31 Dec 2013
    (Audited)
    £’000
    ASSETS        
    Non-current assets        
             
    Goodwill 15 481,366 487,500 481,020
    Intangible assets   4,946 - -
    Property, plant and equipment 9 418,768 457,136 413,401
    Investment properties 9 20,840 - 19,861
    Deferred tax assets 16 19,593 21,410 17,666
    Retirement benefit assets 13 - 2,902 718
    Derivative financial instruments 11 - 1,534 835
    Other financial assets   124 146 124
    Total non-current assets   945,637 970,628 933,625
             
    Current assets        
    Properties held for sale 9 11,101 19,533 11,352
    Inventories 10 262,533 259,350 246,220
    Trade and other receivables 10 343,622 321,398 307,822
    Derivative financial instruments 11 636 1,533 835
    Cash and cash equivalents 11 162,462 151,595 151,099
    Total current assets   780,354 753,409 717,328
             
    Total assets   1,725,991 1,724,037 1,650,953
             
    EQUITY        
    Equity share capital   8,308 8,283 8,302
    Share premium account   206,570 204,617 206,554
    Capital redemption reserve   621 621 621
    Revaluation reserve   13,892 20,573 13,978
    Shares to be issued reserve   4,278 3,149 2,875
    Cash flow hedge reserve   - (107) 98
    Foreign currency translation reserve   60,835 70,991 66,346
    Retained earnings   587,134 552,094 575,419
    Treasury shares held   (3,897) (3,897) (3,897)
    Equity attributable to owners of the Company   877,741 856,324 870,296
    Non-controlling interests 8 4,115 4,096 4,051
    Total equity   881,856 860,420 874,347
             
    LIABILITIES        
    Non-current liabilities        
    Interest-bearing loans and borrowings 11 250,071 280,418 272,610
    Provisions   20,684 27,080 22,663
    Retirement benefit obligations 13 19,616 15,885 7,840
    Derivative financial instruments 11 - - -
    Deferred tax liabilities 16 31,208 39,763 30,746
    Total non-current liabilities   321,579 363,146 333,859
             
    Current liabilities        
    Interest-bearing loans and borrowings 11 14,094 23,756 13,863
    Trade and other payables 10 482,098 456,819 410,011
    Current income tax liabilities 16 16,429 10,402 8,201
    Derivative financial instruments 11 - 267 33
    Provisions   9,935 9,227 10,639
    Total current liabilities   522,556 500,471 442,747
             
    Total liabilities   844,135 863,617 776,606
             
    Total equity and liabilities   1,725,991 1,724,037 1,650,953
  • Group Condensed Cash Flow Statement For the six months ended 30 June 2014

     
     
     
     




    Notes
     
    Six Months to
    30 June 2014
    (Unaudited)
    £’000
     
    Six Months to
    30 June 2013
    (Unaudited)
    £’000
    Profit before taxation   45,936 51,495
    Finance income   (774) (1,426)
    Finance expense   5,421 8,142
    Operating profit   50,583 58,211
    Depreciation 9 15,900 16,007
    Share-based payments charge   1,607 1,077
    Non-cash movement in operating provisions   2,249 (4)
    Claims paid on insurance and other provisions   (3,542) (2,169)
    Profit on sale of property, plant and equipment 9 (1,891) (694)
    Non-cash decrease in pension liabilities (net of pension provision)   - (27,051)
    Contributions to pension schemes in excess of IAS 19 charge 13 (1,057) (1,892)
    Decrease in working capital 10 24,258 13,389
    Cash generated from operations   88,107 56,874
    Interest paid   (5,464) (6,182)
    Income taxes paid   (449) (4,867)
    Cash flows from operating activities   82,194 45,825
    Investing activities      
    Inflows      
    Proceeds from sale of property, plant and equipment 9 3,192 1,261
    Interest received   378 419
        3,570 1,680
    Outflows      
    Acquisition of subsidiary undertakings and businesses 14 (23,525) (3,263)
    Net cash acquired with subsidiary undertakings 14 78 -
    Deferred acquisition consideration paid   - (1,503)
    Investment in intangible asset – computer software   (4,946) -
    Purchase of property, plant and equipment 9 (18,796) (9,101)
        (47,189) (13,867)
    Cash flows from investing activities   (43,619) (12,187)
    Financing activities      
    Inflows      
    Proceeds from the issue of share capital   22 3
    Proceeds from borrowings   57,970 9,806
        57,992 9,809
    Outflows      
    Repayment of borrowings   (58,834) -
    Dividends paid 6 (12,784) (10,857)
    Movement on finance lease liabilities   (313) (249)
    Redemption of loan notes payable net of derivatives   (11,540) (11,375)
        (83,471) (22,481)
    Cash flows from financing activities   (25,479) (12,672)
           
    Net increase in cash and cash equivalents   13,096 20,966
    Cash and cash equivalents at 1 January   151,099 128,027
    Effect of exchange rate fluctuations on cash held   (1,733) 2,602
    Cash and cash equivalents at the end of the period   162,462 151,595
  •   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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