Final Results for the Year Ended 31 December 2021
Record Performance and Transformational Year for Business
Grafton Group plc ("Grafton"), the international building materials distributor and DIY retailer is pleased to announce its final results for the year ended 31 December 2021.
These results are presented for continuing operations following the sale of the Group’s Traditional Merchanting business in Great Britain on 31 December 2021 and the results for 2020 have been restated accordingly.
Continuing Operations1 | 2021 | 20202 (restated) | Change |
Revenue | £2,110m | £1,679m | +25.6% |
Adjusted3 operating profit | £288.0m | £170.6m | +68.8% |
Adjusted operating profit before property profit4 | £271.2m | £170.7m | +58.9% |
Adjusted operating profit margin before property profit | 12.9% | 10.2% | +270bps |
Adjusted profit before tax | £268.6m | £146.4m | +83.5% |
Adjusted earnings per share | 93.0p | 50.3p | +84.9% |
Dividend | 30.5p | 14.5p | +110.3% |
Adjusted return on capital employed (ROCE) | 19.4% | 11.9% | +750bps |
Net cash (before IFRS 16 leases) 5 | £588.0m | £181.9m | +£406.1m |
Net cash/(debt) – (including IFRS 16 leases) 6 | £139.0m | (£355.0m) | +£494.0m |
Statutory Results – Continuing Operations | 2021 | 2020 (restated) | Change |
Operating profit | £269.2m | £157.8m | +70.6% |
Profit before tax | £249.8m | £133.6m | +87.0% |
Basic earnings per share | 86.4p | 45.9p | +88.3% |
1 Supplementary financial information in relation to Alternative Performance Measures (APMs) is set out on pages 44 to 49 of the announcement.
2 The results for 2020 have been restated as the Traditional Merchanting Business in Great Britain is now classified as a discontinued operation. Details are set out in Note 14.
3 The term “Adjusted” means before exceptional items and acquisition related items. Please refer to APMs on page 44 for details of acquisition related items. The adjustment of acquisition related items is a change on previous years and thus the 2020 comparative APM’s have been restated to conform to current year presentation.
4 The property profit from continuing operations amounted to £16.7 million in 2021 whereas this was a loss of £0.1 million in 2020.
5 Net cash from total operations (before IFRS 16 lease liabilities), which includes cash of the discontinued operations in 2020.
6 Net cash/(debt) from total operations (including IFRS 16 lease liabilities), which includes the discontinued operations in 2020.
Operational Highlights
- Excellent results were slightly ahead of expectations
- Very strong performance across all businesses, with record contributions from Woodie’s and Selco
- Strong gains by Chadwicks and Isero brands
- Record contribution from businesses in Ireland
- Sale of Traditional Merchanting Business in Great Britain for £520 million provides further investment capacity for growth
- Acquisition of IKH in Finland for €200 million provides new growth platform in the Nordics
- Good contribution from StairBox acquisition which performed ahead of plan
- Ongoing investment in digital
- Continued progress of sustainability agenda
Financial Highlights
- Record adjusted operating profit of £271.2 million (before property profit)
- Record Group adjusted operating profit margin of 12.9% (before property profit)
- Structural transformation in operating margin in UK Distribution business to 12.5%
- Adjusted return on capital employed of 19.4%
- Cash generated from operations of £303.2m million
- Net cash at year end of £588.0 million (before IFRS 16 lease liabilities)
"2021 saw record profits, a step change to higher returning businesses following the divestment of our Traditional Merchanting business, exposure to a new growth platform in the Nordics and increased focus on digital and sustainability opportunities.
Gavin Slark Group Chief Executive Officer
Our people have been a key differentiator in delivering safe and superior customer outcomes throughout the pandemic and in mitigating supply chain challenges at a time of resilient demand in the broader repair, maintenance and improvement and DIY segments in our markets.
Trading year to date has been encouraging and the outlook for 2022 is positive, supported by strong housing and RMI markets, the inherent strength of our businesses, our strong balance sheet and future investment opportunities."