‘Resilient’ building materials firm Grafton Group sees decline in profit
- The group revealed that adjusted operating profit down 30.5% to £105.1m in Q1
- London-listed company did see small growth in revenue up 3.2% to £1.189m
Grafton Group have seen a decline in profits over the first half of the year as company praises ‘resilient performance’.
The building materials firm revealed that adjusted operating profit was down by 30.5 per cent to £105.1million for the period ending 30 June.
The London-listed company did however see a slight growth in revenue up by 3.2 per cent to £1.189million over the same time period.
The building materials firm revealed that adjusted operating profit was down by 30.5 per cent to £105.1million for first half the year
The group also announced that it was launching a new share buyback plan of up to £50million.
Eric Born, chief executive officer, said: ‘The strength of the Group’s market positions and our experienced management teams have underpinned a resilient performance in the face of challenging conditions during the first half.
‘Grafton’s robust cash generation has enabled us to return £132.7 million to shareholders in the half year by way of share buybacks and dividends whilst leaving our net cash position broadly unchanged.’
He adds: ‘This strong balance sheet, together with our nimble operating structure, will allow us to take advantage of organic and acquisitive growth opportunities.
‘Whilst uncertainties remain in the short term, we are confident that Grafton is exceptionally well positioned to benefit as the cycle turns, markets normalise and consumer confidence gains momentum.’
Grafton shares were up 1.26 per cent to 866.20p in early afternoon trading on Thursday
In January, the group reported that it had recorded a solid end to last year, seeing average daily equivalent revenue rise by 2.6 per cent at constant currency levels, giving it total annual sales growth of 9.5 per cent.
The Dublin-based company’s sales more than doubled in Finland following a massive recovery in demand at its IKH workwear and personal protection equipment firm.
Revenues at its Irish and Dutch distribution divisions also grew significantly, with the former aided by buoyant activity in the new build housing and repair, maintenance and improvement market.