Grafton Group PLC (ISE:GFTU) first-half profit dropped but the builders merchants company said it is confident the full-year will be in in line with analysts’ forecasts despite macro conditions making the short-term outlook uncertain.
Adjusted profit before tax fell to £143.4mln in the six months to 30 June, down 3.6% on the same period last year.
Despite this, the DIY and garden retailer behind brands such as Woodies expects to deliver a full year profit in line with consensus, with adjusted EBITDA of approximately £267mln.
However, the group cautioned much of this depends on the “usual seasonal upturn in trading” between September and November.
Grafton also lamented headwinds such as price inflation and the cost of living crisis making the short-term outlook more uncertain.
According to its statement, however, the group’s brands, market positions and balance sheet leaves it extremely well placed to respond to any opportunities that may emerge.
“Though potential macro-economic headwinds remain, Grafton is uniquely placed to outperform given its leading market positions, geographic diversity and the relative resilience of its core repair, maintenance and improvement market,” Slack added.
Revenues were up 12% to £1.15bn, partly due to excellent performance in its distribution business in Ireland and the Netherlands, according to a statement.
Grafton also improved its dividend per share to 9.25p, up 8.8%, and swung to a positive cash position of £73.5mln from a loss of £246.6mln.