2023 Half Year Results
Grafton Group plc announced its Half Year Results for the period ended 30 June 2023 on Thursday 31 August 2023 at 07:00 (GMT).
View the results announcement in PDF format here
Key Financial Data for the period ended 31 June 2023:
Financial Highlights for the Period ended 30 June 2023
| Total Operations2 | H1 2023 | H1 2022 | Change |
|---|---|---|---|
| Revenue | £1,189m | £1,153m | +3.2% |
| Adjusted3 operating profit | £105.1m | £151.1m | (30.5%) |
| Adjusted operating profit before property profit | £103.9m | £132.6m | (21.6%) |
| Adjusted operating profit margin before property profit | 8.7% | 11.5% | (280bps) |
| Adjusted profit before tax | £104.3m | £143.4m | (27.3%) |
| Adjusted earnings per share | 38.1p | 49.5p | (23.1%) |
| Interim dividend | 10.0p | 9.25p | +8.1% |
| Adjusted return on capital employed (ROCE) | 14.3% | 18.8% | (450bps) |
| Net cash (including IFRS 16 leases) | £3.7m | £73.5m | (£69.8m) |
| Net cash (before IFRS 16 leases) | £438.4m | £520.5m | (£82.1m) |
| Statutory Results | H1 2023 | H1 2022 | Change |
| Operating profit | £94.3m | £140.1m | (32.7%) |
| Profit before tax | £93.6m | £132.4m | (29.3%) |
| Basic earnings per share | 34.2p | 45.8p | (25.3%) |
1 Grafton compiled consensus Analysts’ forecasts for 2023 show adjusted operating profit of circa £202.6 million and a range of £194.6 million to £209.4 million.
2 Supplementary financial information in relation to Alternative Performance Measures (APMs) is set out on pages 43 to 47.
3 The term “Adjusted” means before exceptional items, amortisation of intangible assets arising on acquisitions and acquisition related items in both periods.
Group Condensed Income Statement for the six months ended 30 June 2023
Group Condensed Income Statement
For the six months ended 30 June 2023
| Notes | Six months to 30 June 2023 (unaudited) £’000 |
Six months to 30 June 2022 (unaudited) £’000 |
|
|---|---|---|---|
| Revenue | 2 | 1,189,322 | 1,152,847 |
| Operating costs | (1,096,130) | (1,031,290) | |
| Property profits | 3 | 1,147 | 18,518 |
| Operating profit | 94,339 | 140,075 | |
| Finance expense | 4 | (12,458) | (9,849) |
| Finance income | 4 | 11,678 | 2,158 |
| Profit before tax | 93,559 | 132,384 | |
| Income tax expense | 17 | (18,775) | (22,950) |
| Profit after tax for the financial period | 74,784 | 109,434 | |
| Profit attributable to: | |||
| Owners of the Company | 74,784 | 109,434 | |
| Earnings per ordinary share - basic | 5 | 34.21p | 45.81p |
| Earnings per ordinary share - diluted | 5 | 34.15p | 45.78p |
Group Condensed Balance Sheet as at 30 June 2023
| Notes | 30 June 2023 (unaudited) |
30 June 2022 (unaudited) |
31 Dec 2022 (Audited) |
|
|---|---|---|---|---|
| ASSETS | £’000 | £’000 | £’000 | |
| Non-current assets | ||||
| Goodwill | 15 | 625,756 | 625,434 | 635,751 |
| Intangible assets | 16 | 141,562 | 158,566 | 153,712 |
| Property, plant and equipment | 9 | 354,563 | 331,788 | 354,402 |
| Right-of-use asset | 8 | 406,871 | 418,134 | 420,115 |
| Investment properties | 9 | 24,548 | 21,939 | 26,084 |
| Deferred tax assets | 6,104 | 5,856 | 8,063 | |
| Lease receivable | 361 | 528 | 453 | |
| Retirement benefit assets | 13 | 10,535 | 8,508 | 4,584 |
| Other financial assets | 126 | 128 | 129 | |
| Total non-current assets | 1,570,426 | 1,570,881 | 1,603,293 | |
| Current assets | ||||
| Properties held for sale | 9 | 5,020 | 5,461 | 4,364 |
| Inventories | 10 | 391,530 | 399,209 | 399,565 |
| Trade and other receivables | 10 | 293,039 | 287,149 | 267,694 |
| Lease receivable | 195 | 212 | 196 | |
| Derivative financial instruments | 11 | 39 | 10 | - |
| Cash and cash equivalents | 11 | 640,051 | 782,720 | 711,721 |
| Total current assets | 1,329,874 | 1,474,761 | 1,383,540 | |
| Total assets | 2,900,300 | 3,045,642 | 2,986,833 | |
| EQUITY | ||||
| Equity share capital | 7,476 | 8,388 | 7,870 | |
| Share premium account | 222,205 | 221,112 | 221,975 | |
| Capital redemption reserve | 1,785 | 869 | 1,389 | |
| Revaluation reserve | 12,286 | 12,434 | 12,375 | |
| Shares to be issued reserve | 11,487 | 8,312 | 8,647 | |
| Cash flow hedge reserve | 39 | 2 | (37) | |
| Foreign currency translation reserve | 66,747 | 68,018 | 87,492 | |
| Retained earnings | 1,359,762 | 1,444,139 | 1,411,053 | |
| Treasury shares held | (6,438) | (7,526) | (5,185) | |
| Equity attributable to owners of the Parent | 1,675,349 | 1,755,748 | 1,745,579 | |
| LIABILITIES | ||||
| Non-current liabilities | ||||
| Interest-bearing loans and borrowings | 11 | 201,724 | 136,786 | 253,502 |
| Lease liabilities | 11 | 373,984 | 390,598 | 389,198 |
| Provisions | 14,650 | 15,647 | 15,189 | |
| Retirement benefit obligations | 13 | 12,712 | 853 | 15,068 |
| Deferred tax liabilities | 57,895 | 60,649 | 61,011 | |
| Total non-current liabilities | 660,965 | 604,533 | 733,968 | |
| Current liabilities | ||||
| Interest-bearing loans and borrowings | 11 | - | 125,461 | - |
| Lease liabilities | 11 | 60,644 | 56,399 | 60,105 |
| Derivative financial instruments | 11 | - | - | 29 |
| Trade and other payables | 10 | 477,581 | 480,171 | 420,653 |
| Current income tax liabilities | 20,093 | 17,197 | 20,595 | |
| Provisions | 5,668 | 6,133 | 5,904 | |
| Total current liabilities | 563,986 | 685,361 | 507,286 | |
| Total liabilities | 1,224,951 | 1,289,894 | 1,241,254 | |
| Total equity and liabilities | 2,900,300 | 3,045,642 | 2,986,833 |