Revenue jumps to £1.45bn at Woodie’s DIY owner


Revenue jumps to £1.45bn at Woodie’s DIY owner

Grafton CEO Gavin Slark. Photo: Patrick Bolger
Grafton CEO Gavin Slark. Photo: Patrick Bolger

Grafton Group has seen its revenue jump 9pc to £1.45bn (€1.6bn) in the six months to 30 June, according to a trading update from the group.

During the period all of the group’s segments reported growth in profitability.

Profit before tax was up 19pc year-on-year to £90m, with the group reporting strong organic growth in its Irish and Netherlands merchanting business.

In addition, the company said that its Woodie’s business in Ireland and mortar manufacturing business in the UK had performed “excellent”.

Grafton said that further positive progress towards medium term financial objectives had been made, with the operating margin increasing by 50 bps to 6.4pc and return on capital employed by 80bps to 14pc.

“Excellent organic growth in key markets has been complemented by the positive impact of self-help measures and development activity,” Gavin Slark, CEO of Grafton, said.

“The geographic diversity of our operations continues to be an important strength of the group.  We made further progress towards our medium term financial objectives and invested £120m on the Leyland SDM acquisition and capital projects to support future growth in profitability.”

During the period the group reported strong cash flow of £110m from its operations.

There was a 14pc increase in dividend in line with what the company described as its “progressive dividend policy”.

Last week Grafton announced that it is raising €160m in the US via a private placement to refinance existing debt.

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