Even though the domestic market for Grafton's (GFTU) repair, maintenance and improvement (RMI) services was subdued, the group was still able to boost profits after a more vibrant performance from other geographical markets. So, while UK merchanting managed to push operating profits ahead by just 2.9 per cent to £102.6m, the Irish operation saw operating profits up by nearly a quarter, to £35.5m. Much the same story came from the Netherlands, where profits were up by nearly a third at £12.6m. And although tiny, the Belgian operation turned the previous year’s loss into a modest profit.
In the UK, merchanting brand Selco continued to expand its branch network, and revenue grew by 15 per cent, and a further seven new branches are expected to open this year. There has also been a new online platform and a new App that allows customers to prepare a list of materials for each individual project.
Analysts at Peel Hunt are forecasting adjusted pre-tax profits for the year ending December 2018 of £169.6m and EPS of 58.1p (from £157.2m and 54.9p in 2017).
| GRAFTON (GFTU) | ||||
| ORD PRICE: | 770.5p | MARKET VALUE: | £1.83bn | |
| TOUCH: | 769.5-771.5p | 12-MONTH HIGH: | 851p | LOW: 607p |
| DIVIDEND YIELD: | 2% | PE RATIO: | 14 | |
| NET ASSET VALUE: | 495p* | NET DEBT: | 5% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2013 | 1.90 | 68 | 26.8 | 8.5 |
| 2014 | 2.08 | 101 | 34.4 | 10.8 |
| 2015 | 2.21 | 120 | 41.6 | 12.5 |
| 2016 | 2.51 | 114 | 39.6 | 13.75 |
| 2017 | 2.72 | 154 | 54.0 | 15.5 |
| % change | +8 | +35 | +36 | +13 |
| Ex-div: | 8 Mar | |||
| Payment: | 6 Apr | |||
| *Includes intangible assets of £646m, or 272p a share | ||||
