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Selco owner Grafton Group reveals “strong” first half performance

"We are pleased to report a strong first half performance across the group with all segments reporting double-digit growth in profitability,” said Gavin Slark, Grafton chief executive.
plumbing supplies
Pretax profit improved by 19% to £90mln

Grafton Group Plc (LON:GFTU) has highlighted a ‘strong’ first-half performance, with growth in both revenue and profit, thanks to an acquisition boost and success more broadly across the group.

The group, which owns builders merchants businesses such as Selco and Irish DIY retail chain Woodies, reported a 9% rise in revenue to £1.44bn for the six months ended June 30, while pre-tax profit improved by 19% to £90mln.

Earnings per share similarly increased by 19% to 30.8p, supporting a 14% dividend upgrade to 6p per share from 5.25p.

READ: Grafton Group raises €160mln in notes sale to US investors

Grafton Group told investors that organic growth in established business and the acquisition of the Leyland SDM unit were the key drivers in the group’s positive first half.

"We are pleased to report a strong first half performance across the group with all segments reporting double-digit growth in profitability,” said Gavin Slark, Grafton chief executive.

Excellent organic growth in key markets has been complemented by the positive impact of self-help measures and development activity. 

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 £120mln on the Leyland SDM acquisition and capital projects to support future growth in profitability."

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