The Grafton plc Board has declared an interim dividend of 10.75 pence per share, an increase of 2.4 per cent on last year's interim dividend of 10.50 pence.
The interim dividend increase is below the rate of growth in earnings per share in the first half, as it is the Board's intention to restore, in due course, full year dividend cover to within the Board's medium-term target range of between two and three-times adjusted earnings, supporting a disciplined approach to capital allocation. In 2024, dividend cover was slightly beneath this target range at 1.9 times and is likely to remain slightly below this target in the current year.
The interim dividend for 2025 will be paid on 10 October 2025 by Grafton Group plc to shareholders on the Register of Members at the close of business on 12 September 2025 (the 'Record Date'). The ex-dividend date is 11 September 2025.
Other financial highlights include:
First half adjusted operating profit was in line with expectations, increasing by 9.5 per cent to £91.0 million (H1 2024: £83.1 million) driven in large part by the contribution of Salvador Escoda
Continued focus on margin management led to gross margin improvement of 60 basis points which offset the impact of increased overheads connected to inflationary pressure and higher labour costs
Group operating margin maintained at 7.3% (H1 2024: 7.3%) with adjusted return on capital employed of 10.9% at a similar level to prior year (H1 2024: 11.1%)
Adjusted earnings per share increased by 6.5% to 35.5p (H1 2024: 33.4p)
Strong balance sheet of £245.8 million net cash (before lease liabilities) providing significant firepower to capitalise on organic and inorganic development opportunities
Full year adjusted operating profit is expected to be broadly in line with analysts' expectations 1 with the important Autumn trading period still to come
