2009 Final Results
Released: 04/03/2010
Highlights
Grafton Group plc announces its final results for the twelve months ended 31 December 2009. Grafton is a major operator in the UK builders merchant market and the leading merchant and DIY business in Ireland.
| 2009 | 2008 |
Revenue | 1.98bn | 2.67bn |
Adjusted operating profit* | 26.2m | 118.6m |
Operating profit per income statement | 4.9m | 99.2m |
Profit before tax | 13.6m | 64.1m |
Free cash flow | 171m | 212m |
EBITDA | 74.1m | 172.9m |
Adjusted earnings per share** | 5.4c | 32.2c |
Basic earnings per share | 5.8c | 25.1c |
Dividend / share purchase | 5.0c | 15.0c |
Net debt | 322m | 435m |
Gearing | 35% | 50% |
* Before intangible amortisation (2.2m), impairment (5.5m) and restructuring costs (13.6m net)
** Before intangible amortisation, impairment, restructuring costs (net) and 2009 investment profit
Financial Highlights:
- Extensive measures taken to reduce Groups cost base by an annualised 85m
- Working capital management and tight capex boosts free cash flow to 171m
- Debt to equity ratio reduced to 35 per cent
- Net debt reduced by 113m to 322m
- Freely available cash deposits of 302m at year end
- Emerging from the downturn with a well protected balance sheet
- Interim dividend of 2.5 cent payable on 31 March 2010
Operational Highlights:
- Sharp fall in market demand leads to decline in sales
- Satisfactory market share performance
- Benefits derived from lower cost base, integration, scale related and procurement efficiencies
- Trading stabilises in second half
- Trading outlook beginning to improve following period of significant uncertainty
- UK accounts for 68 per cent of total sales
UK:
- Turnover down 20 per cent to 1.34bn
- UK turnover stabilises in second half as leading demand indicators turn more positive
- Modest like for like growth returns to a number of UK activities
- Ten new branches opened
- Significant improvement in dry mortar sales
Ireland:
- Turnover down 35 per cent to 638m
- Rate of sales decline continues to moderate
- Ongoing financial benefits from reduced costs
- Restructuring positions merchanting network for return to profitability
- Sharp fall in DIY volumes mitigated by improved operational efficiencies
Outlook:
Commenting on the outlook, Michael Chadwick, Executive Chairman said:
Group sales in the second half of 2009 were similar to the first half. This stabilisation of sales, combined with the action taken to substantially reduce the cost base and integration benefits in our merchanting business, resulted in improved profitability during the second half of last year. Sales in the first two weeks of January 2010 were affected by severe adverse weather conditions. Since then sales have been close to expectations and last year with good increases into the UK new housing sector."
The Groups strong businesses and financial strength position it to consolidate market share in its key markets. With a lower cost base and more integrated merchanting business, it is well placed to benefit from its operating leverage as markets recover.
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: | +353 | 1 436 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: | +353 | 1 436 4267 |
| UK: | +44 | 207 769 6425 |
| US: | +1 630 | 652 3111 |
| Other: | +353 | 1 436 4267 |
The digital replay security code is: 2463095#
View the full 2009 Final Results announcement in PDF format.
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