Investors

 

2009 Interim Results

2009 Interim Results

Released: 28/08/2009

Highlights

Grafton Group plc announces its interim results for the six months ended 30 June 2009. Grafton has a significant presence in the UK Builders Merchanting market which accounted for two thirds of turnover in the half year and is the leading builders merchanting and DIY operator in Ireland.


20092008

Revenue

€0.99 bn€1.44 bn

Operating (loss)/profit

(€8.3 m)€71.8 m

Profit before tax

 €3.7 m €53.4 m

Earnings per share

1.5 c20.2 c

‘A’ ordinary share purchase

2.5 c 10.0 c

Financial Highlights:

  • Turnover down by 31 per cent and by 24 per cent in constant currency terms.
  • Investment and property profit of €28 million and restructuring costs of €9 million.
  • Cash generated from operations of €77 million in the period.
  • Secure funding position and good liquidity with cash balances of €270 million at period end.
  • Net debt down by €56 million to €380 million and gearing down to 41 per cent.
  • Shareholders’ funds up by €61 million to €930 million.

Operational Highlights:

  • Range of actions taken in response to sharp deterioration in economic environment and decline in the Group’s markets.
  • Cost reduction programme achieved annualised savings of over €70 million.
  • Continued emphasis on integration of the merchanting business in the UK and Ireland.

Outlook:

Commenting on the outlook, Michael Chadwick, Executive Chairman said:

“Grafton’s focus remains firmly on maximising operational efficiencies and cash generation. The intensity of the downturn in our markets has moderated and recent months have seen more stable sales levels. In the UK, housing starts are rising and leading indicators for repair, maintenance and improvement work are positive. Grafton has strong competitive operating units and a conservatively managed securely funded balance sheet with good liquidity. The Group is confident of trading successfully through this major cyclical downturn and is well positioned to capitalise on upturns in activity in its markets.”

Conference Call

Grafton will host an Analysts’ conference call today at 8.30am (Irish Time) to discuss this announcement. The dial-in numbers are:

Ireland: +3531 436 4265
UK: +44 208 817 9301
US:+1 718 354 1226
Other Countries:+353 1 436 4265

A replay of the conference call will be available from 11.30am (Irish Time). To access the recording, the dial-in numbers are:

Ireland: +3531 436 4267
UK: +44 207 769 6425
US: +1 630 652 3111
Other: +353 1 436 4267

The digital replay security code is: 1998361#

View the full 2009 Interim Results in PDF format.

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