Grafton Group plc (GFTU.L) said it achieved record operating profits and margins as well as record cash generation for the first half period. The overall outlook for the Grafton businesses is positive. Grafton said it is confident in the delivery of full year Group adjusted operating profit in continuing operations of approximately 240 million pounds, as previously guided. The Group noted that it expects supply chains will continue to be disrupted to some extent over the coming months.
For the six months ended 30 June 2021, pretax profit increased to 142.88 million pounds from 29.47 million pounds, prior year. Earnings per ordinary share from continuing operations was 48.4 pence compared to 9.6 pence.
Adjusted operating profit from continuing operations was 157.8 million pounds compared to 46.9 million pounds, previous year, up by 236.2 percent due to the decline in profitability last year in the distribution and manufacturing businesses in the UK and the distribution business in Ireland as a result of the temporary closure of branches and plants. Adjusted operating profit before property profit was 142.4 million pounds, up 203.9 percent. Adjusted earnings per share from continuing operations was 50.3 pence compared to 11.1 pence.
Group revenue from continuing operations, which excludes the Traditional Merchanting Business in Britain, rose by 46.1 percent to 1.03 billion pounds from 703.7 million pounds, last year.
The Group noted that its first half of prior year has now been restated as the Traditional Merchanting Business in Great Britain is now classified as a discontinued operation.
The Board has decided to pay an interim dividend of 8.5 pence per share.
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