2020 Half Year Report
Grafton Group plc announced its 2020 Half Year Report on Thursday 27th August 2020, at 07:00 (GMT).
View the results announcement in PDF format here.
Key Financial Data for the six months ended 30 June 2020:
£m1 | H1 2020 | H1 20192 | Change |
Revenue – total | 1,058 | 1,483 | (29%) |
- Revenue – continuing operations | 1,058 | 1,314 | (19%) |
Adjusted3 | |||
Operating profit – all operations | 39.4 | 104.5 | (63%) |
- Operating profit – continuing operations | 39.4 | 99.8 | (61%) |
Profit before tax – continuing operations | 24.8 | 87.1 | (72%) |
Earnings per share – basic (continuing operations) | 8.1p | 30.1p | (73%) |
Statutory results | |||
Operating profit – continuing operations | 35.1 | 97.2 | (64%) |
Profit before tax – continuing operations | 20.5 | 84.4 | (76%) |
Earnings per share – basic (continuing operations) | 6.7p | 29.2p | (77%) |
Dividend | 0.0p | 6.5p | (100%) |
Net cash/(debt) (pre IFRS 16) | 58.6 | (0.1) | +£58.7m |
Net debt | 479.2 | 540.5 | (£61.3m) |
Adjusted operating margin pre property profit | 3.7% | 7.2% | (350bps) |
Adjusted operating profit margin | 3.7% | 7.6% | (390bps) |
Return on capital employed | 7.8% | 10.4% | (260bps) |
1 Supplementary financial information in relation to Alternative Performance Measures (APMs) is set out on pages 37 to 46 of the Half Year Report.
2 H1 2019 has now been restated as the Plumbase business is now classified as a discontinued operation. Details are set out in Note 14 and in the APM’s.
3 The term “Adjusted” means before exceptional items and amortisation of intangible assets arising on acquisitions in both periods.
Notes |
| 2020 (unaudited)
£’000 | 2019 (unaudited) Restated £’000 | ||
Revenue | 2 |
| 1,058,412 | 1,313,603 | |
Operating costs |
| (1,023,596) | (1,221,166) | ||
Property profits | 3 |
| 308 | 4,737 | |
Operating profit |
| 35,124 | 97,174 | ||
Finance expense | 4 |
| (15,161) | (13,284) | |
Finance income | 4 |
| 515 | 510 | |
Profit before tax |
| 20,478 | 84,400 | ||
Income tax expense | 17 |
| (4,524) | (14,939) | |
Profit after tax for the financial period from continuing operations |
| 15,954 | 69,461 | ||
Loss after tax from discontinued operations | 14 | - | (22,541) | ||
Profit after tax for the financial period | 15,954 | 46,920 | |||
|
| ||||
Profit attributable to: |
| ||||
Owners of the Company |
| 15,954 | 46,920 | ||
Profit attributable to: |
|
|
| ||
Continuing operations |
|
| 15,954 | 69,461 | |
Discontinued operations |
|
| - | (22,541) | |
|
|
|
| ||
Earnings per ordinary share (continuing operations) - basic | 5 |
| 6.7p | 29.2p | |
Earnings per ordinary share (continuing operations) - diluted | 5 |
| 6.7p | 29.1p | |
Earnings per ordinary share (discontinued operations) - basic | 5 | 0.0p | (9.5p) | ||
Earnings per ordinary share (discontinued operations) - diluted | 5 | 0.0p | (9.5p) | ||
Earnings per ordinary share (total) - basic | 5 | 6.7p | 19.7p | ||
Earnings per ordinary share (total) - diluted | 5 | 6.7p | 19.7p |
Notes |
| 30 June 2020 (Unaudited) | 30 June 2019 (Unaudited) | 31 Dec 2019 (Audited) | |||
ASSETS |
|
| £’000 | £’000 | £’000 | ||
Non-current assets |
|
|
| ||||
Goodwill | 15 |
| 676,450 | 637,553 | 657,845 | ||
Intangible assets | 16 |
| 99,764 | 77,256 | 103,268 | ||
Property, plant and equipment | 9 |
| 498,208 | 509,126 | 500,924 | ||
Right-of-use asset | 8 |
| 504,012 | 525,457 | 522,245 | ||
Investment properties | 9 |
| 12,752 | 13,786 | 12,526 | ||
Deferred tax assets |
|
| 12,143 | 7,263 | 7,600 | ||
Lease receivable | 10 |
| 2,266 | 2,423 | 2,417 | ||
Retirement benefit assets | 13 |
| 890 | 1,714 | 756 | ||
Other financial assets |
|
| 128 | 126 | 127 | ||
Total non-current assets |
|
| 1,806,613 | 1,774,704 | 1,807,708 | ||
|
|
| |||||
Current assets |
|
|
| ||||
Properties held for sale | 9 |
| 19,936 | 11,992 | 16,274 | ||
Inventories | 10 |
| 303,163 | 344,093 | 317,632 | ||
Trade and other receivables | 10 |
| 294,462 | 477,340 | 388,023 | ||
Lease receivable | 10 |
| 151 | 301 | 297 | ||
Derivative financial instruments | 11 |
| - | 84 | 7 | ||
Cash and cash equivalents | 11 |
| 422,988 | 358,926 | 348,787 | ||
Total current assets |
|
| 1,040,700 | 1,192,736 | 1,071,020 | ||
Assets of disposal group held for sale | 14 |
| - | 32,525 | - | ||
Total assets |
|
| 2,847,313 | 2,999,965 | 2,878,728 | ||
|
|
| |||||
EQUITY |
|
|
| ||||
Equity share capital |
|
| 8,552 | 8,514 | 8,516 | ||
Share premium account |
|
| 213,785 | 213,452 | 213,719 | ||
Capital redemption reserve |
|
| 621 | 621 | 621 | ||
Revaluation reserve |
|
| 12,864 | 13,057 | 12,954 | ||
Shares to be issued reserve |
|
| 8,745 | 9,520 | 12,889 | ||
Cash flow hedge reserve |
|
| (59) | 58 | 9 | ||
Foreign currency translation reserve |
|
| 86,176 | 80,929 | 70,142 | ||
Retained earnings |
|
| 1,049,926 | 991,251 | 1,047,698 | ||
Treasury shares held |
|
| (3,897) | (3,897) | (3,897) | ||
Equity attributable to owners of the Parent |
|
| 1,376,713 | 1,313,505 | 1,362,651 | ||
Total equity |
|
| 1,376,713 | 1,313,505 | 1,362,651 | ||
|
|
| |||||
LIABILITIES |
|
|
| ||||
Non-current liabilities |
|
|
| ||||
Interest-bearing loans and borrowings | 11 |
| 364,308 | 357,043 | 339,261 | ||
Lease liabilities | 11 |
| 480,656 | 489,198 | 487,999 | ||
Provisions |
|
| 17,742 | 16,066 | 15,785 | ||
Retirement benefit obligations | 13 |
| 45,572 | 22,189 | 21,939 | ||
Deferred tax liabilities | 17 |
| 49,342 | 40,446 | 47,109 | ||
Total non-current liabilities |
|
| 957,620 | 924,942 | 912,093 | ||
|
|
| |||||
Current liabilities |
|
|
| ||||
Lease liabilities | 11 |
| 57,144 | 53,198 | 55,368 | ||
Trade and other payables | 10 |
| 424,154 | 634,841 | 511,855 | ||
Current income tax liabilities | 17 |
| 22,824 | 33,890 | 27,461 | ||
Derivative financial instruments | 11 |
| 62 | 27 | - | ||
Provisions |
|
| 8,796 | 9,471 | 9,300 | ||
Total current liabilities |
|
| 512,980 | 731,427 | 603,984 | ||
Liabilities of disposal group held for sale | 14 |
| - | 30,091 | - | ||
Total liabilities |
|
| 1,470,600 | 1,686,460 | 1,516,077 | ||
|
|
|
| ||||
Total equity and liabilities |
|
| 2,847,313 | 2,999,965 | 2,878,728 |