10th Mar 2015 07:39
LONDON (Alliance News) - Grafton Group PLC Tuesday reported a strong increase in pretax profit for 2014, as the continued recovery in the housing markets in both the UK and Ireland drove up revenue in its merchanting business, and it said its outlook remains favourable because those markets are set to remain strong.
The Irish builders merchanting and DIY company reported a pretax profit of GBP80.0 million for 2014, up from GBP62.0 million in 2013, as revenue rose to GBP2.08 billion, from GBP1.90 billion, and its underlying operating profit margin rose to 5.3% from 4.1%.
It raised its dividend for the year to 10.75 pence, from 8.5p, as return on capital employed increased to 11.1% from 7.8%, net debt dropped to GBP75.3 million from GBP133.7 million and cash flow from operations rose to GBP160.0 million from GBP95.3 million in 2013.
"2014 was a year of significant progress for Grafton which recorded its fifth successive year of strong profit growth and met the board's 'first base' financial targets of an operating profit margin exceeding 5% and a double digit return on capital employed. Given that 2014 was also the first full year of recovery in its major businesses, the overall outlook for the group is positive," Chief Executive Gavin Slark said.
By Steve McGrath; [email protected]; @stevemcgrath1
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