(Alliance News) - Grafton Group PLC on Tuesday upped guidance for 2020 after a stronger-than-expected performance in the last two months of the year, but results still lagged behind the previous year's earnings.
The Dublin-based building materials distributor and DIY retailer said average daily like-for-like revenue on a constant currency basis for the two months to December 31 was up by 7.2%.
Total revenue was up by 11% year-on-year to GBP439.4 million from GBP396.7 million.
Total revenue for 2020 was down 6.0% to GBP2.51 billion from GBP2.67 billion a year prior. This reflects a sharp decline in trading during the second quarter lockdown that was "significantly offset" by a recovery in the second half of the year, the company said.
Regionally for Grafton's merchanting business, the UK segment did the worst with total annual revenue down 15%, while the Netherlands saw an increase of 31% or 29% at constant currency.
Retailing revenue grew 20% in the year, while manufacturing fell 23%.
Grafton expects adjusted operating profit for the year to be slightly more than 5% ahead of the previously expected GBP175 million. This is thanks to a stronger-than-expected performance in November and December, the company said.
In 2019, operating profit, including all operations, came in at GBP211.3 million.
Chief Executive Gavin Slark said: "I greatly appreciate the way that colleagues across the group have responded to the pandemic and thank them most sincerely for their exceptional commitment, hard work and support that enables our businesses to trade in a safe environment. We are very encouraged by the strong recovery and performance of the group in the second half of the year. Despite the uncertainties related to the pandemic, we believe Grafton is well placed for continuing progress in the year ahead supported by our very strong financial and market positions."
Final results are due on February 25.
Grafton shares were up 1.0% at 949.50 pence each in London on Tuesday morning.
By Greg Roxburgh; gregroxburgh@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Grafton Group (GFTU)