Grafton Group PLC (ISE:GFTU) launched a new buyback and raised the dividend despite seeing a drop in half-year profit in what it called challenging conditions.
The international building materials distributor and DIY retailer said revenue in the six months to 30 June 2023 rose 3.2% £1.19 billion from £1.15 billion the year before, although pre-tax profit fell 27.3% to £104.3 million from £143.4 million.
Grafton said the results were in line with its expectations and backed full-year guidance although it cautioned market conditions are expected to remain challenging over the remainder of the year amid a backdrop of high inflation, high interest rates and cost-of-living pressures.
Eric Born, chief executive, said: “The strength of the group's market positions and our experienced management teams have underpinned a resilient performance in the face of challenging conditions during the first half.”
Despite the lower profit, Grafton launched a new £50 million share buyback to be completed by the end of January 2024 and said its previous £50 million scheme had been completed.
The dividend was increased 8.1% to 10.0p from 9.25p.
Grafton said underlying market fundamentals remain strong despite current challenges and described the first-half performance as resilient despite challenging distribution markets.
Volumes were lower across the its distribution businesses but Woodie's DIY, Home and Garden retail business performed strongly as did the UK manufacturing businesses.