‘Resilient’ building materials company Grafton Group sees earnings fall
- The group said adjusted operating profit fell 30.5% to £105.1 million in the first quarter
- The London-listed company saw slight revenue growth of 3.2% to £1.189 million
Grafton Group saw profit fall in the first half of the year as the company praises its “robust performance”.
The building materials company said adjusted operating profit for the period ended June 30 fell 30.5 percent to £105.1 million.
However, the London-listed company saw slight sales growth of 3.2 per cent to £1.189 million over the same period.
The building materials company said adjusted operating profit fell 30.5 percent to £105.1 million in the first half
The group also announced it was launching a new share buyback plan worth up to £50m.
Eric Born, CEO, said: “The strength of the Group’s market positions and our experienced management teams have resulted in a robust performance despite the difficult conditions in the first half of the year.”
“Grafton’s robust cash generation enabled us to return £132.7m to shareholders through share buybacks and dividends during the half-year, while our net cash position remained broadly flat.”
He adds, “This strong balance sheet combined with our flexible operating structure will allow us to capitalize on organic and acquisitive growth opportunities.”
“While uncertainties remain near-term, we are confident that Grafton is exceptionally well positioned to benefit from the turn in the cycle, normalization of markets and rising consumer confidence.”
Grafton shares rose 1.26 percent to 866.20 pence in early afternoon trade on Thursday
In January, the group reported that it had posted a solid end to the past year, posting an average 2.6 percent increase in daily equivalent sales in constant currencies, for an annual total sales growth of 9.5 percent.
The Dublin-based company’s sales have more than doubled in Finland following a massive rebound in demand at its IKH workwear and personal protective equipment business.
Sales from the Irish and Dutch sales divisions also increased significantly, with the former being helped by brisk activity in the new housing and repair, maintenance and refurbishment markets.