24th Feb 2022 11:30
(Alliance News) - Grafton Group PLC on Thursday said it saw record profit in 2021 leading to a doubled annual payout, with trading at the start of the year showing good momentum.
The Dublin-based building materials distributor and DIY retailer reported pretax profit of GBP249.8 million in 2021, jumping 87% from GBP133.6 million a year before.
Revenue increased by 25% to GBP2.11 billion from GBP1.68 billion. This was partially offset by widening operating costs of GBP1.86 billion from GBP1.52 billion.
"2021 saw record profits, a step change to higher returning businesses following the divestment of our Traditional Merchanting business, exposure to a new growth platform in the Nordics and increased focus on digital and sustainability opportunities," Chief Executive Gavin Slark said.
Grafton in January sold its Traditional Merchanting business - which includes the Buildbase, Timber Group and NDI brands - for GBP520 million.
Grafton declared a final dividend of 22.0 pence per share. The year's total payout came in at 30.5p per share, doubled from the previous year's sole dividend of 14.5p.
"Trading year to date has been encouraging and the outlook for 2022 is positive, supported by strong housing and RMI markets, the inherent strength of our businesses, our strong balance sheet and future investment opportunities," Slark added.
Average daily like-for-like revenue for the period between January 1 and February 13 increased by 19% year-on-year. But this was measured against a weaker performance in the same period last year which was hurt by the pandemic, the company noted.
Grafton shares were down 0.7% to 1,064.00p each in London on Thursday.
By Greg Roxburgh; [email protected]
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