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2010 Interim Results

2010 Interim Results

Released: 31/08/2010

Highlights

Grafton Group plc announces its interim results for the six months ended 30 June 2010.

20102009
Revenue €979 m€990 m
Operating profit / (loss) €14.8 m(€8.3 m)
Profit before tax €13.4 m€3.7 m
Earnings per share 5.6 c1.5 c
Dividend / 'A' ordinary share purchase 2.5 c2.5 c

FINANCIAL HIGHLIGHTS:

  • Turnover decline stabilised at €979m
  • Turnaround of €23m brings operating profits to €14.8m
  • Gross margin increased by 26 basis points
  • Like for like costs reduced by €22.6m
  • Shareholders' funds increase by €54.8m to €966.6m or €4.18 per share
  • Strong operational cash flow of €60.2m
  • Further net debt reduction of €41.4m lowers debt/equity ratio to 29 per cent
  • Refinancing of net debt to 2013 completed

OPERATIONAL HIGHLIGHTS:

Merchanting UK:

  • Operating profit more than doubles
  • Turnover increases by 5 per cent to €678.5m
  • Merchanting market improves
  • Two small businesses acquired and one branch opened

Merchanting Ireland:

  • Approaches breakeven with €0.5m loss
  • Rate of contraction in turnover moderates to low single digits
  • Overheads reduced by €12m

OUTLOOK:

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

"The market challenges faced by the Group over recent years eased considerably in the first half. Losses in Irish merchanting were much reduced and operating profit in UK merchanting increased strongly. The improved trends in Group turnover were sustained in July and August. Grafton's profits are now recovering and we expect further profit improvement in the second half. A good base has been established from which renewed growth in earnings can be generated over the coming years as market conditions normalise."

View the full 2010 Interim Results in PDF format.