2021 Half Year Results
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Grafton Group plc ("Grafton"), the international building materials distributor and DIY retailer is pleased to announce its half year results for the period ended 30 June 2021.
Continuing Operations1 | H1 2021 | H1 20203 (restated) | Change |
Revenue | £1,028m | £704m | +46.1% |
Adjusted2 operating profit | £157.8m | £46.9m | +236.2% |
Adjusted operating profit before property profit | £142.4m | £46.9m | +203.9% |
Adjusted profit before tax | £148.6m | £33.8m | +340.1% |
Adjusted earnings per share | 50.4p | 11.1p | +355.2% |
Dividend | 8.5p | - | - |
Net cash (before IFRS 16 leases) 4 | £302.5m | £57.0m | +£245.5m |
Net (debt) – (including IFRS 16 leases) 5 | (£209.9m) | (£479.2m) | -£269.3m |
Statutory Results – Continuing Operations | H1 2021 | H1 2020 (restated) | Change |
Operating profit | £152.1m | £42.7m | +256.6% |
Profit before tax | £142.9m | £29.5m | +384.8% |
Basic earnings per share | 48.5p | 9.6p | +403.4% |
1 Supplementary financial information in relation to Alternative Performance Measures (APMs) is set out on pages 43 to 48.
2 The term “Adjusted” means before exceptional items and amortisation of intangible assets arising on acquisitions in both years.
3 H1 2020 has now been restated as the Traditional Merchanting Business in Great Britain is now classified as a discontinued operation. Details are set out in Note 14.
4 Net cash from total operations (before IFRS 16 lease liabilities), which includes cash of the discontinued operations.
5 Net debt from total operations (including IFRS 16 lease liabilities), which includes the discontinued operations.
Operational Highlights
- Strong performance across the Group and a notable record contribution from the Woodie’s DIY, Home and Garden business in Ireland
- Agreement to divest Traditional Merchanting Business in Great Britain for an enterprise value of £520 million
- Completed acquisition of IKH in Finland on 1 July 2021
- Good contribution from StairBox acquisition which performed ahead of plan
- Continued progress of sustainability agenda
Financial Highlights
- Record half year adjusted operating profit of £142.4 million (before property profit)
- Record Group adjusted operating profit margin of 13.9% (before property profit) and adjusted return on capital employed of 20.5%
- Record half year cash generation of £255.3 million from all operations
- Net cash at 30 June 2021 of £302.5 million (before IFRS 16 lease liabilities)
Gavin Slark, Chief Executive Officer Commented:
“I want to thank all of our colleagues for their tremendous contribution and commitment in delivering an exceptional first half outcome in which Grafton achieved record operating profits and margins as well as record cash generation.
2021 marks a key phase of a very considered strategic transformation we have executed at Grafton over recent years, which today comprises a portfolio of high returning, differentiated businesses with the capacity to grow and outperform in our chosen markets.
The overall outlook for the Grafton businesses is positive given the strength of our current market positions, geographic diversity, strong balance sheet and investment pipeline, alongside supportive sector and macro trends together with the successful rollout of vaccines to date in the four countries where the Group now operates.”