2019 Final Results
27 Feb 2019
Final Results for the Year Ended 31 December 2019
|Pre IFRS 16|
|Revenue - total||2,924||2,924||2,953||(1%)|
|Revenue - continuing operations||2,672||2,672||2,603||+3%|
|Revenue - discontinued operations||252||252||350||(28%)|
|Operating profit - continuiung operations||204.8||194.3||187.6||+4%|
|Operating profit - discontinued operations||6.5||5.4||6.9||(23%)|
|Operating profit - all operations||211.3||199.7||194.5||+3%|
|Earnings per share - basic (continuing operations)||62.8p||66.0p||63.7p||+4%|
|Operating profit - continuing operations||197.8||187.3||180.5||+4%|
|Profit before tax - continuing operations||172.6||181.8||174.4||+4%|
|Earnings per share - basic (continuing operations)||60.5p||63.7p||60.9p||+5%|
|Adjusted operating margin pre property profit||7.4%||7.0%||7.0%||-|
|Adjusted operating profit margin||7.7%||7.3%||7.2%||+10bps|
|Return on capital employed||12.7%||14.4%||14.7%||(30bps)|
1 Supplementary financial information in relation to Alternative Performance Measures (APMs) is set out on pages 42 to 53.
2 A bridge between the pre IFRS 16 and the related IFRS impact is set out within the APM’s and detail is also in Note 20.
3 2018 has been restated as Plumbase and the Belgium Merchanting business are classified as discontinued operations. Details are
set out in the APM’s.
4 Change relates to 2019 v 2018 pre any IFRS 16 “Leases” impact.
5 The term “Adjusted” means before exceptional items and amortisation of intangible assets arising on acquisitions in both years.
- Revenue in continuing operations up 3% to £2.7 billion - 2.9% growth in constant currency
- Operating profit in continuing operations up 4% to £194.3 million on a pre-IFRS 16 basis
- Strong organic growth in Merchanting and Retailing businesses in Ireland
- Significant growth in profitability in Netherlands business and increase in scale with Polvo acquisition
- Softer trading in UK merchanting business, particularly in H2 on weaker economy and RMI market
- Reshaped our portfolio with successful disposal of Plumbase and Belgian Merchanting business
- Strong pre-IFRS 16 cash flow from operations of £219.1 million (2018: £209.2 million) and net cash of £7.8m at year end
- 6% increase in total dividend to 19.00p is consistent with progressive dividend policy
- Implementation of IFRS 16 standard on accounting for leases has no economic impact on Group but has changed the measurement of many aspects of the Group’s accounts
Gavin Slark, Chief Executive Officer commented:
"“2019 saw growth in revenue, profitability and earnings per share alongside continuing progress in evolving and re-shaping our businesses to enhance our value proposition to our customers and drive sustainable growth for our shareholders. Strong organic growth in our Merchanting and Retailing operations in Ireland and in the profitability of our Netherlands operations helped offset a challenging year in the UK due to political and economic uncertainty. The outlook for 2020 is of continuing but moderating growth in Ireland and the Netherlands and while reduced uncertainty may lead to some uplift in the UK RMI market, we remain cautious about the speed of any recovery. Given the strength of our brands we look forward to another year of progress for Grafton and with a strong balance sheet and rigorous financial discipline we are well placed to capitalise on growth opportunities.”"Gavin Slark Chief Executive Officer
An analysts and investors results presentation will be hosted by Gavin Slark and David Arnold at 8.30am (GMT) today 27 February 2020 at the London Stock Exchange, 10 Paternoster Square, London EC4M 7LS. A live webcast will be available on https://www.graftonplc.com/investors/grafton-group-final-results-2019/ and we recommend you register in advance. A recording of this webcast will also be available to replay later in the day. The results presentation can be viewed/downloaded at http://www.graftonplc.com
|Grafton Group plc|
Gavin Slark, Chief Executive Officer
David Arnold, Chief Financial Officer
|+ 353 1 216 0600|
|+ 353 1 498 0300|
Tim Rowntree/Rachel Mann
|+ 44 20 3128 8549|
Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied by these forward looking statements. They appear in a number of places throughout this announcement and include statements regarding the intentions, beliefs or current expectations of Directors and senior management concerning, amongst other things, the results of operations, financial condition, liquidity, prospects, growth, strategies and the businesses operated by the Group. The Directors do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
View the full 2019 Final Results announcement in PDF format.