Grafton Group plc has announced its half year results for the period ended 30 June 2023 with expectations for the year reaffirmed.
There was a decline in first half adjusted operating profit (before property profit) as anticipated although full year adjusted operating profit is likely to be in line with Analysts’ expectations.
The group has had a resilient first half performance despite challenging distribution markets and underlying market fundamentals remain strong despite current challenges.
Volumes were lower across the group’s distribution businesses. Woodie’s DIY, Home and Garden retail business performed strongly and there was a notably strong performance by UK Manufacturing businesses.
Eric Born, Chief Executive Officer commented: “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. Grafton’s robust cash generation has enabled us to return £132.7 million to shareholders in the half year by way of share buybacks and dividends whilst leaving our net cash position broadly unchanged. This strong balance sheet, together with our nimble operating structure, will allow us to take advantage of organic and acquisitive growth opportunities. Whilst uncertainties remain in the short term, we are confident that Grafton is exceptionally well positioned to benefit as the cycle turns, markets normalise and consumer confidence gains momentum.”
