(Alliance News) - Grafton Group PLC on Thursday reported a drop in its full-year profit, but said it had raised its dividend.
The Dublin-based building materials distributor and DIY store chain operator said in the year ended December 31, pretax profit fell 27% to GBP183.5 million from GBP251.7 million the year before.
Revenue edged up slightly by 0.9% to GBP2.32 billion from GBP2.30 billion in 2022.
"Cost-of-living pressures driven by high inflation and interest rate rises led to reduced spending by households on home improvements and weakened demand for new homes as affordability became stretched. Volumes in the distribution businesses were therefore lower in these weaker markets," the firm explained.
Grafton declared a full-year dividend of 26.0 pence per share, up 9.5% from 23.75p a year ago.
Looking ahead, Grafton said it expects trading in 2024 to remain challenging, but affirmed that its demand fundamentals were strong, adding that "whilst uncertainties remain in the short term, we are confident that Grafton is exceptionally well positioned to benefit as the cycle turns, markets normalise, and consumer confidence improves."
Commenting on Grafton's results, Chief Executive Officer Eric Born said: "While trading conditions are expected to remain challenging, demand fundamentals are supported by a structural under supply of new homes and an ageing housing stock that requires upgrading including energy conservation measures. With a somewhat improving economic backdrop, we are confident that Grafton is exceptionally well positioned to benefit as the cycle turns, markets normalise and consumer confidence improves."
Shares in Grafton dropped 0.1% to 963.90 pence each in London on Thursday morning.
By Sabrina Penty, Alliance News reporter
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Grafton Group (GFTU)