(Alliance News) - Grafton Group PLC on Wednesday reported record half-year earnings as revenue topped GBP1 billion.
Revenue for the six months ended June 30 rose 46% to GBP1.03 billion from GBP703.7 million a year earlier. The Dublin-based firm said it had now "fully recovered" from the impact of the lockdown in the first half of last year, with average daily like-for-like revenue 17% ahead of the first half of pre-pandemic 2019.
The building materials distributor and DIY retailer posted a pretax profit of GBP142.9 million, improved considerably from GBP29.5 million a year before. A record half-year adjusted operating profit of GBP142.4 million was more than three times the GBP46.9 million reported a year earlier.
Grafton singled out a record contribution from its Woodie's DIY, Home & Garden business in Ireland as a strong contributor to top and bottom line growth.
"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," commented Chief Executive Gavin Slark.
"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."
Looking ahead, Grafton pointed to favourable conditions for its businesses in the UK, Ireland and the Netherlands as economic activity normalises following the lifting of restrictions.
Despite the positive signs, the company did warn that risks remain that a further spread of Covid-19 or the emergence of new vaccine resistant variants could require restrictions to be reimposed. Grafton also noted that supply chains will continue to be disrupted to some extent over the coming months.
Full-year guidance for adjusted operating profit in continuing operations was maintained at around GBP240 million, subject to increasing property profit by GBP10 million.
Grafton proposed an interim dividend payout of 8.5 pence per share, due to be paid in September. The company paid no interim dividend for 2020, though it paid a 14.5p final dividend for the year.
Shares were trading up 1.3% at 1,326.00 pence each in London on Wednesday morning.
By Will Paige; willpaige@alliancenews.com
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Grafton Group (GFTU)