Grafton Group increases its 2016 interim dividend by 6%

DividendMax Ltd.

Grafton Group increases its 2016 interim dividend by 6%


Revenue up 13% to £1.23 billion (12% in constant currency) - growth was  broadly split between existing business and acquisitions

Adjusted Group operating profit before property profit growth of 18% to £64.8m (2015: £55.1m) reflected strong contributions from Ireland, the recent acquisition of Isero in the Netherlands and Selco in the UK

Adjusted Group operating margin before property profit increased by 20bps to 5.3%

Ongoing investment in Selco store opening programme - 50%  increase in store numbers expected in the three years to June 2017

Robust cash generation from operations of £108.0 million (2015: £73.2 million)

6% increase in dividend in line with progressive dividend policy

Investment of £40.1 million on acquisitions and capital expenditure in H1 to support future growth

Challenging backdrop in UK merchanting market but organisational restructuring to provide sustainable benefits in 2017

Net debt of £95.7m was £17.9m lower than at 31 December 2015 resulting in gearing of 9%

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