Half Year Report

For the Six Months Ended 30 June 2025

 

 

 

 

 

 

Grafton Group plc

Half Year Report for the Six Months Ended 30 June 2025

Profit growth despite varied market backdrop  

 

Grafton Group plc ("Grafton" or "the Group"), the international building materials distributor and DIY retailer is pleased to announce its half year results for the period ended 30 June 2025.

 

Financial Highlights

§	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
§	Interim dividend increased by 2.4 per cent and a further £25.0 million share buyback to commence, funded by strong free cash flow generated in 2025
§	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

 

Operational Highlights

§	Ongoing investment to strengthen and consolidate market positions notwithstanding cyclical lows in activity in some of our geographies
§	Integration of Salvador Escoda is progressing well - positive progress in pursuit of further organic and inorganic growth opportunities in Iberia, an attractive and fragmented growth market
§	Strong performance in Ireland - acquisition of HSS Hire Ireland complements Chadwicks' hire business, while Woodie's delivered a strong performance in the first half
§	UK Distribution returned to profit growth for the first time since 2021 despite a challenging RMI market
§	Activity in the Netherlands remains relatively subdued and in Finland a strengthened management team is in place to maximise opportunities when the market recovers from historical lows

 

Total Operations 2	H1 2025	H1 2024	Change
Revenue	£1,252m	£1,137m	10.1%
Adjusted3 operating profit	£91.0m	£83.1m	9.5%
Adjusted operating profit before property profit	£91.0m	£83.1m	9.5%
Adjusted operating profit margin before property profit	7.3%	7.3%	-
Adjusted profit before tax	£86.8m	£84.1m	3.2%
Adjusted earnings per share	35.5p	33.4p	6.5%
Interim dividend	10.75p	10.5p	2.4%
Adjusted return on capital employed (ROCE)	10.9%	11.1%	(20bps)
Net (debt) (including IFRS 16 leases)	(£147.3m)	(£46.8m)	(£100.5m)
Net cash (before IFRS 16 leases)	£245.8m	£361.1m	(£115.3m)

 

 

Statutory Results	H1 2025	H1 2024	Change
Operating profit	£87.7m	£71.3m	22.9%
Profit before tax	£83.5m	£71.7m	16.5%
Basic earnings per share	35.1p	28.4p	23.3%

 

¹ Grafton compiled consensus analysts' forecasts for 2025 show adjusted operating profit of circa £185.1 million and a range of £184.0 million to £187.3 million.

² Supplementary financial information in relation to Alternative Performance Measures (APMs) is set out on pages 39 to 44.

³ The term "Adjusted" means before exceptional items, amortisation of intangible assets arising on acquisitions and acquisition related items in both periods, which are defined on page 39.

 

 

 

 

 

 

Eric Born, Chief Executive Officer Commented:  

           

"Grafton delivered a resilient performance in the first half, with revenue and profit approximately 10 per cent higher than the same period last year, driven by strong contributions from Spain and Ireland.  Following the platform acquisition of Salvador Escoda, non-UK markets now account for approximately 64 per cent of the Group's turnover.  Given our ambition to be a leading player in the European building materials distribution market and our exposure to the growing and fragmented Iberian market, we would expect that diversification trend to continue.

 

"Whilst we saw an easing of trading momentum towards the end of May and into June, the start of the second half has seen a return to growth of Group average daily like-for like revenue.  Outlook for the full year varies by market, but in the round, and with the important Autumn trading months to come, we expect full year adjusted operating profit to be broadly in line with analysts' expectations.   

 

"More widely, after having returned over £403 million to shareholders by buying back almost one fifth of the Group's shares since May 2022, our strong balance sheet and liquidity leaves Grafton in an excellent position to execute our growth strategy.  Despite lingering cyclical lows, we continue to invest in the UK, the Netherlands and Finland, given their strong recoverability potential over time.  In addition to organic development, we are actively pursuing bolt-on and platform acquisitions in our chosen European markets."

 

Webcast and Conference Call Details

A copy of the results presentation document will be available at 7:00am on 4 September 2025 via the home page of the Company's website www.graftonplc.com.   

      

A presentation for analysts and investors will be hosted by Eric Born and David Arnold at 9:00am on 4 September 2025.  A live webcast of the presentation including Q&A will be available to view via the Company's website at www.graftonplc.com or by clicking here.

 

Analysts will be invited to raise questions during the presentation.  Should investors wish to submit a question in advance, they can do so before 8.15am on 4 September 2025 by sending an email to ir@graftonplc.com.  A recording of the webcast will be made available on the Company's website.

 

Investors		Media
Grafton Group plc	+353 1 216 0600	Murray	pwalsh@murraygroup.ie
Eric Born	Chief Executive Officer	Pat Walsh	+353 1 498 0300/+353 87 226 9345
David Arnold	Chief Financial Officer
		Burson Buchanan Helen Tarbet Simon Compton Toto Berger	GraftonGroup@buchanancomms.co.uk   +44 (0) 7872 604 453 +44 (0) 7979 497 324 +44 (0) 7880 680 403

Forward-looking statements

This announcement may include forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "outlook," "believe(s),"expect(s)," "potential," "continue(s)," "may," "will," "should," "could," "would," "seek(s)," "predict(s)," "intend(s)," "trends," "plan(s)," "estimate(s)," "anticipates," "projection," "goal," "target," "aspire," "will likely result" and other words and terms of similar meaning or the negative versions of such words or other comparable words of a future or forward-looking nature. These forward-looking statements include all matters that are not historical facts and include statements regarding Grafton's or its affiliates' intentions, beliefs or current expectations concerning, among other things, Grafton's or its affiliates' results of operations, financial condition, liquidity, prospects, growth, strategies and the industries in which they operate. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Readers are cautioned that forward-looking statements are not guarantees of future performance and that Grafton's or its affiliates' actual results of operations, financial condition and liquidity, and the development of the industries in which they operate may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if Grafton's or its affiliates' results of operations, financial condition and liquidity, and the development of the industries in which they operate are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. The directors do not undertake any obligation to update or revise any forward-looking statements, whether because of new information, future developments or otherwise.

 

 

 

Half Year Report for the Six Months Ended 30 June 2025

 

Business Review

 

Grafton's trading performance in the first half of 2025 reflects the resilience of its diversified operations and the tangible benefits of self-help actions, despite a continuing weak trading environment outside of Ireland and Spain.  Supported by our strong free cash flow generation and balance sheet, we continue to invest to strengthen and consolidate our market positions despite cyclical lows in activity in some of our geographies; this positions the Group to leverage meaningful profitability growth when the recovery gets underway.  We believe there are many opportunities for consolidation across our markets and remain focused on identifying and executing acquisitions to reinforce and increase our presence and support our long-term growth ambition to be a leading player in the European building materials distribution market.

 

Following a slow start to the year, trading activity gained momentum as weather conditions improved but then eased from mid-May and into June across many of our businesses, coinciding with a spike in global uncertainties which impacted customer confidence.

 

The Group's gross margin improved by 60 basis points in the first half, reflecting a strong focus on margin management across all businesses. This was underpinned by targeted pricing actions and a focus on delivering value for our customers, procurement efficiencies, and successful negotiations for enhanced supplier support.

 

Our management teams have taken decisive action to mitigate cost pressures by optimising staff rosters and deployment, streamlining processes and implementing efficiency initiatives.  As a result, the improvement in gross margin offset the impact of continuing cost pressures being felt across the Group because of substantial increases in minimum wage levels, national insurance in the UK and local collective labour agreements, alongside higher property costs where rents are often linked to inflation benchmarks.

 

Adjusted operating profit increased to £91.0 million (2024: £83.1 million) in the first half with the increase driven in large part by the contribution from the recently acquired Salvador Escoda business in Spain.

 

We are pleased with the results of our Ireland Distribution and Retailing businesses, both of which achieved good growth in profitability in the first half of 2025.  Chadwicks performed well in the first half, with revenue higher as a result of materials price inflation and benefiting from its strong market position, despite a broadly flat construction market.  Profitability improved largely due to higher sales and an improvement in gross margin more than offsetting increased overheads. Woodie's delivered a robust performance, supported by a continuous focus on strengthening its customer proposition and resilient consumer spending in Ireland, to further grow profitability and operating margin in the first half.

 

Our UK Distribution business returned to profit growth, from a cyclically low base, in the first half despite a continuing weak RMI market backdrop, especially in the greater London area. Targeted commercial actions improved gross margin which more than offset significant cost pressures, particularly from rising labour and property-related expenses. 

 

In the Netherlands, construction activity remains subdued and profitability declined in the first half largely due to inflationary pressure on overheads.  Good progress was made as part of a multi-year business improvement project covering the operating model and supporting systems which will realise benefits to customers, increase efficiencies and reduce the cost to serve.

 

In Spain, the integration of Salvador Escoda, which was acquired by the Group on 30 October 2024, continues to progress well. The business is benefitting from ongoing active collaboration with Group functions and sister businesses to identify and execute opportunities to further build on its strong position in the Spanish market.  Trading in the first half, which was in line with pre-acquisition expectations, contributed revenue of £104.2 million and adjusted operating profit of £6.5 million.  The Group continues to support the local management team to drive organic growth while actively assessing acquisition opportunities in the attractive and fragmented Iberian market, where we have the opportunity to be both a consolidator and a compounder.

 

Our Finland Distribution business, IKH, reported a significant drop in profitability in the first half. Trading activity declined largely due to historically weak market conditions and adverse weather impacting seasonal sales but there were also some temporary operational challenges which are being actively addressed by the strengthened management team. 

 

In our manufacturing segment, CPI EuroMix delivered strong profitability growth, supported by higher volumes and improved fixed cost absorption.  Following a strong start to the year, driven by housebuilding customers accelerating build in the early part of the year, momentum eased in the second quarter.  StairBox delivered improved profitability, despite RMI demand remaining relatively weak, largely due to active management of input costs and gross margin management together with tight cost control.

 

Returns to Shareholders

 

Dividends

 

The 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.

 

In the half year, we had a cash outflow of £51.8 million on the payment of the final dividend for 2024. Only dividends paid in the half year have been charged to equity and no liability for the interim dividend has been recognised at 30 June 2025 as there was no payment obligation at that date.

 

Share Buybacks

 

Reflecting its disciplined approach to capital deployment and supported by its resilient balance sheet and strong cash conversion, Grafton has completed six share buyback programmes since May 2022.  This has returned cash of £403.3 million to shareholders through share buybacks reflecting the repurchase of 46.54 million ordinary shares at an average price of £8.67 per share.  In total, the Group has reduced its share capital by 19.4 per cent since the first buyback programme commenced.

 

The sixth share buyback programme was launched on 6 March 2025 to buy back ordinary shares in the Company for an aggregate consideration of up to £30 million and fulfilled a commitment in 2024 to use the free cash flow generated that year to return capital to shareholders through a combination of dividend payments and share buybacks.  At 30 June 2025, the Group had purchased 3.00 million of ordinary shares in aggregate for cancellation at a total cost, including transaction costs, of £27.1 million.  However, due to timing, only 2.83 million ordinary shares were cancelled at 30 June 2025 and the remaining 0.17 million ordinary shares purchased for £1.8 million were cancelled in July 2025.  This programme completed on 8 July 2025 and involved the repurchase of 3.29 million ordinary shares at an average share price of £9.11 per share.

 

Capital allocation decisions are regularly reviewed by the Board which is committed to maintaining a disciplined approach to the deployment of capital.  Reflecting the Group's strong cash generation and our positive conviction on Grafton's future prospects, a new share buyback programme for up to £25.0 million is announced today commencing on 4 September 2025. The highly cash generative nature of the Group enables us to return capital to shareholders while continuing to actively pursue a robust and growing pipeline of acquisition opportunities.  The seventh share buyback programme will commence today and end no later than 31 January 2026, subject to market conditions.

 

 

We expect to deliver full year adjusted operating profit broadly in line with analysts' expectations recognising the important Autumn trading season has still to come.

 

Positive trading conditions are expected to continue in Ireland and Spain; however, we anticipate a continuation of similar trading conditions in our other geographies in the second half of 2025.  In our recent trading update in early July, we noted an easing of trading momentum from mid-May into June however since then and up to 24 August, we have seen a return to growth of Group average daily like-for-like revenue. 

 

Notwithstanding the impact of US imposed tariffs and any associated economic consequences, the medium-term fundamentals remain positive for Grafton, with structural housing shortages across all our geographies and an expected recovery in RMI demand after several consecutive years of low levels of investment by households.

 

In Ireland, the outlook for the economy in the second half remains cautiously optimistic and construction activity in the second half of 2025 is expected to mirror the trends observed in the first half.  The prospects for growth in the construction market remain positive, driven by strong government support and the recently announced revised €112 billion National Development Plan aimed at housing and infrastructure.

 

In the UK, we remain cautious on the near-term outlook for RMI demand.  We are well positioned to capitalise on a recovery in demand, though believe a meaningful recovery of volumes is unlikely this year particularly as a result of recent speculation around property taxes.  However, higher household savings and pent-up demand are expected to progressively support increased investment in home improvement projects once confidence returns. The pace of growth in new housebuilding in the UK, which indirectly affects RMI spend through its linkage with housing transactions and which directly affects the performance of CPI EuroMix, remains uncertain though structural underinvestment makes this a key focal point for Government policy.

 

The anticipated recovery in construction activity in 2025 in the Netherlands has yet to materialise in a meaningful way and both the timing and extent of any activity upturn remains uncertain.  Nevertheless, the medium-term outlook is positive, supported by a robust project pipeline and a persistent housing shortage underpinned by population growth.

 

Spain continues to be one of the fastest-growing economies in Europe.  Spain's construction sector is set to grow by 3-4 per cent in 2025, supported by strong economic performance, increased Foreign Direct Investment and a rise in building permits. The medium-term outlook for construction remains positive, supported by ongoing population growth and a structural housing shortage.  The heating, ventilation, air conditioning ("HVAC") segment is particularly well-positioned for growth due to regulatory pressure to improve energy efficiency and the adoption of advanced technologies in renovation and retrofit projects, in addition to climate change projects linked to increasing temperatures on the Iberian Peninsula.

 

Indicators show that confidence in Finland's construction sector remain very weak with the overall economy expected to see relatively little growth in 2025 before returning to modest levels of growth in 2026.  The operational improvements we are making in IKH, combined with its strong market position, mean it is well positioned to benefit from the recovery in the wider economy.

 

Group average daily like-for-like revenue in the period from 1 July 2025 to 24 Aug 2025 was 2.3 per cent ahead of the same period last year, supported by strong growth in Ireland and in our manufacturing businesses.  UK Distribution average daily like-for-like revenue was broadly flat and similar to the trend in the first half whilst showing an improvement in comparison to the weak trading activity experienced from mid-May to the end of June.  Sales in the Netherlands were impacted by the timing of regional holidays and weaker project related sales.  In Finland, performance continues to be below expectations against the backdrop of a weak economy and management are taking active steps to improve performance.  Our manufacturing businesses performed well in comparison to a weak trading period in the prior year.

On a pro-forma basis in comparison to prior year, average daily like-for-like revenue in Spain increased by 9.4 per cent due to a strong air conditioning summer campaign supported by hotter weather conditions.

           

	Average Daily Like-for-Like Revenue Change in Constant Currency
	H1 2025	1 July 2025 - 24 Aug 2025
Distribution
Ireland	+3.7%	+5.3%
UK	+0.2%	(0.2%)
Netherlands	+2.8%	(1.1%)
Finland	(4.2%)	(9.0%)
Retailing	+7.6%	+8.7%
Manufacturing	+5.2%	+11.9%
Total Group	+2.4%	+2.3%

 

 

 

The Distribution businesses in Ireland, the UK, the Netherlands, Finland and Spain contributed 84.5 per cent of Group revenue (2024: 83.7 per cent), Retailing 11.0 per cent (2024: 11.5 per cent) and Manufacturing 4.5 per cent (2024: 4.8 per cent).

 

Geographically, businesses in Ireland contributed 37.1 per cent (2024: 39.7 per cent) of Group revenue, UK 35.8 per cent (2024: 39.2 per cent), the Netherlands 14.0 per cent (2024: 15.4 per cent), Finland 4.8 per cent (2024: 5.7 per cent) and Spain 8.3 per cent (2024: N/A).

 

All our businesses had one fewer trading day compared to the same period in the prior year, except for the Netherlands, Spain and Finland, which each had two fewer trading days.

 

Distribution Segment (84.5% of Group Revenue, 2024: 83.7%)

 

	H1 2025	H1 2024
	£'m	£'m	Change*
Revenue	1,058.0	951.8	11.2%
Adjusted operating profit before property profit	67.7	62.2	8.8%
Adjusted operating profit margin before property profit	6.4%	6.5%	(10bps)

*Change represents the movement between 2025 v 2024 and is based on unrounded numbers

 

Ireland Distribution (25.9% of Group Revenue, 2024: 27.9%)

 

	H1 2025	H1 2024		Constant Currency
	£'m	£'m	Change*	Change*
Revenue	323.8	317.2	2.1%	3.5%
Adjusted operating profit before property profit	31.5	29.7	6.0%	7.3%
Adjusted operating profit margin before property profit	9.7%	9.4%	30bps	-

*Change represents the movement between 2025 v 2024 and is based on unrounded numbers

 

Our Ireland Distribution business, Chadwicks, performed well in the first half as trading activity continued to recover from poor weather in January. Average daily like-for-like revenue was up 3.7 per cent in the first half, largely due to materials price inflation of 3.5 per cent, which accelerated in the second quarter.

 

The overall construction market in Ireland was broadly flat in the first half of the year.  While activity in the commercial sector has increased after several years of decline, the necessary ramp up in housing supply has yet to materialise.  This is primarily due to continuing external challenges such as planning delays, difficulties with utility connections, and labour shortages that continue to constrain the pace of supply expansion.

 

Active commercial management including increased supplier support delivered an improvement in gross margin which more than offset higher overheads and inflationary pressure despite tight control of discretionary costs.

 

Adjusted operating profit before property profit increased to £31.5 million (H1 2024: £29.7 million) and adjusted operating profit margin before property profit was 30 basis points ahead of 2024 at 9.7 per cent.

 

The integration of HSS Hire Ireland, acquired on 31 May 2025, is progressing well, with early trading in line with expectations.  HSS Hire Ireland is a tool and equipment hire specialist operating from four branches and four customer distribution centres in the Republic of Ireland.  It offers an extensive range of conventional hire products as well as specialist equipment with a particular focus on powered access machinery.  This acquisition aligns with Chadwicks' strategy of consolidating its market position in Ireland and enhancing its value proposition by broadening its offering to support its long-term growth objectives.

 

The medium-term outlook for growth in the construction sector remains positive, underpinned by strong policy continuity and renewed government support to accelerate housing delivery.  The recently announced revised National Development Plan marks the largest capital investment in Ireland's history, allocating €112 billion between 2026 and 2030 to accelerate housing delivery and upgrade critical infrastructure.  In the near term, we expect construction activity in the second half of 2025 to mirror the trends observed in the first half.

 

UK Distribution (31.5% of Group Revenue, 2024: 34.7%)

 

	H1 2025	H1 2024
	£'m	£'m	Change*
Revenue	394.4	394.4	-
Adjusted operating profit before property profit	13.9	12.6	10.3%
Adjusted operating profit margin before property profit	3.5%	3.2%	30bps

*Change represents the movement between 2025 v 2024 and is based on unrounded numbers

 

In UK Distribution, Grafton operates as Selco, Leyland SDM and TG Lynes in Great Britain with a predominant geographical exposure to London and the Southeast.  In Northern Ireland, MacBlair is a leading traditional builders' merchant.

 

Average daily like-for-like revenue in the UK Distribution business was 0.2 per cent higher in the first half supported by a slight pick-up in product price inflation to 1.9 per cent.  Following a slow start to the year, average daily like-for-like revenue declined by 1.9 per cent in the first quarter.  Despite a 2.0 per cent increase in average daily like-for-like revenue in the second quarter, market conditions softened noticeably from mid-May through June.  Total revenue was in line with 2024 with new branches opened in Leyland SDM contributing revenue of £1.3 million in the first half.

 

The UK economy posted stronger than expected growth in the first quarter, buoyed by a surge in housing transactions in advance of changes to stamp duty on 1 April and a rebound in manufacturing output, partly driven by increased exports to the US to avoid newly imposed tariffs.  However, economic momentum softened towards the end of the second quarter, as the temporary boost from housing and exports faded and rising global uncertainties weighed on consumer confidence.  Overall, RMI demand remains soft, especially in and around London and the Southeast which accounted for 63 per cent of Grafton's distribution revenue in Great Britain in the first half, reflecting ongoing weakness in consumer sentiment.

 

Despite the weak volume environment, gross margin increased in UK Distribution in the first half, reflecting our active commercial strategy.  While overheads were higher in comparison to the prior year due to inflationary pressure across the cost base, the rate of increase was contained.  Overheads increased on a like-for-like basis by 1.6 per cent because of cost reduction actions across the businesses and strict controls on discretionary expenditure.

 

Adjusted operating profit before property profit increased to £13.9 million (H1 2024: £12.6 million) and adjusted operating profit margin before property profit was 30 basis points higher at 3.5 per cent as the improvement in gross margin more than offset higher overheads.

 

At Selco, average daily like-for-like revenue increased by 0.5 per cent in the first half, aided by material price inflation of 2.0 per cent.  Volumes however continued to decline in the first half reflecting both the competitive trading environment and a tactical focus on reducing low value deliveries that fail to generate the required financial return.

 

Although remaining well below our expectations of returns in a normal market, adjusted operating profit before property profit was strongly ahead in the first half, largely due to improved gross margin more than offsetting higher overheads.

 

Leyland SDM, the leading decorating and DIY brand across Greater London, continued to experience very challenging trading conditions.  Average daily like-for-like revenue declined by 8.2 per cent in the first half resulting in a decline in adjusted operating profit before property profit compared to prior year.

 

Despite challenging market conditions, adjusted operating profit before property profit in our TG Lynes business in London was broadly in line with prior year as the business focused on higher margin projects.

 

In our MacBlair business in Northern Ireland, average daily like-for-like revenue increased by 3.2 per cent in the first half, driven by an improving RMI market and a notable increase in self-build housing activity.  Despite an improving market backdrop, competitive pricing pressure locally and inflationary cost pressure resulted in adjusted operating profit before property profit being lower than the first half of last year.

 

Despite the challenging market conditions in the UK in recent years, the Group continued to open new branches and invest in both refurbishment of existing locations and expanding our product offering to better serve customers.  As one of Europe's largest construction markets and somewhere we have operated successfully for many years, we are focused on continuing to grow our business in the UK both through pursuing new organic growth opportunities in our existing businesses as well as potential acquisitions.  The medium-term fundamentals remain positive, underpinned by Government's plans to significantly increase new housing activity given population growth and a supply deficit.

 

Netherlands Distribution (14.0% of Group Revenue, 2024: 15.4%)

 

	H1 2025	H1 2024		Constant Currency Change*
	£'m	£'m	Change*
Revenue	175.2	175.2	-	1.4%
Adjusted operating profit before property profit	13.9	15.2	(8.0%)	(6.7%)
Adjusted operating profit margin before property profit	8.0%	8.7%	(70bps)	-

*Change represents the movement between 2025 v 2024 and is based on unrounded numbers

 

The business in the Netherlands, which trades under the Isero and Polvo brands across 124 branches, is the market leader in the distribution of ironmongery, tools and fixings products.

 

Average daily like-for-like revenue increased by 2.8 per cent in the first half, driven primarily by strong branch sales and growth in national key accounts, in addition to modest price increases of circa 1 per cent.  Following a strong start to the year, momentum softened due to the completion of major construction projects and delays in new project commencements.

 

Market conditions remain uncertain in the Netherlands.  Notwithstanding an improvement in the number of housing transactions in the market, the recovery of annualised housing permits in the second half of 2024 reversed to a decline in the first half of this year.  Despite a continuing structural shortage in new homes, planning objections and regulatory restrictions continue to delay the start-up of new projects.  The announced two-year rent freeze for social housing, which was reversed in June following the collapse of the Dutch coalition government, resulted in some postponed investment in social housing in the first half of the year. 

 

Due to active commercial management, gross margin increased in the first half despite the adverse mix effect of large construction projects and key accounts accounting for a higher proportion of sales.  

 

Overheads increased in comparison to prior year, partly due to new branch openings but largely because of wage inflation linked to industry-wide collective labour agreements, negotiated amid a continuing tight labour market.

 

Adjusted operating profit before property profit declined to £13.9 million (H1 2024: £15.2 million) and adjusted operating profit margin before property profit was 70 basis points lower at 8.0 per cent largely reflecting the inflationary pressure on overheads.

 

Good progress was made as part of a multi-year business improvement project covering the operating model and supporting systems which, once fully implemented across the Dutch business, will realise benefits to customers, increase efficiencies and reduce the cost to serve.  

 

The anticipated recovery in activity in 2025 has yet to materialise, and both the timing and extent of any upturn of activity remains uncertain.  The medium-term outlook remains positive, supported by a strong project pipeline among major construction contractors and a persistent structural housing shortage, underpinned by continued population growth.

 

Our branch network in the Netherlands has strong national coverage, particularly in major population centres, except in the eastern part of the country where there is scope for further expansion.  We continue to seek opportunities to expand our market position to support further growth as the market recovers.

 

Spain Distribution (8.3% of Group Revenue, 2024: 0.0%)

 

	H1 2025
	£'m
Revenue	104.2
Adjusted operating profit before property profit	6.5
Adjusted operating profit margin before property profit	6.3%

 

Salvador Escoda, which was acquired by the Group on 30 October 2024, is one of Spain's leading distributors of HVAC, water and renewable products serving professional installers across the residential, commercial and industrial sectors.  The business operates through 92 strategically located branches across Spain, supported by four distribution centres in Barcelona, Madrid, Seville, and Valencia.  While the branch network spans most regions of the country, it has a stronger presence in the hottest regions such as Catalonia, Valencia, Andalusia, and Madrid.

 

The business offers over 100,000 products, primarily serving professional installers with a focus on the HVAC sector.  Over 90 per cent of the range comprises technical installation products, catering mainly to installation companies, technicians, and small distributors.  The business is differentiated through its strong private label portfolio, with approximately 60 per cent of sales in the first half of 2025 from high-quality own brands.  Demand for energy-efficient HVAC products continues to grow, driven by regulatory requirements for residential energy upgrades and rising regional temperatures.

 

The integration of Salvador Escoda continues to progress well. The business is already benefitting from active collaboration with Group functions and sister businesses to identify and execute opportunities to further build on its strong position in the Spanish market.  During the first half of 2025, Salvador Escoda reported revenue of £104.2 million and delivered an adjusted operating profit before property profit of £6.5 million, representing an adjusted operating profit margin before property profit of 6.3 per cent. Trading to date, under the Group's ownership of the business, has been in line with pre-acquisition expectations.

 

On a pro-forma basis in comparison to prior year, average daily like-for-like revenue in the first half was 6.9 per cent higher, supported by the timing of strong project-related sales and favourable market conditions.  Gross margin dipped slightly largely due to unfavourable mix both in terms of products and project related sales. Overheads were higher largely due to inflationary pressure, new branch openings and costs related to new hires. Adjusted operating profit before property profit was higher in comparison to the first half of 2024 primarily due to stronger sales.

 

Spain continues to be one of the fastest-growing economies in Europe.  The construction sector is forecast to expand by 3-4 per cent in 2025, underpinned by rising Foreign Direct Investment, easing inflation, increased building permits, and improving business confidence.  The medium-term outlook for construction remains positive, supported by ongoing population growth and a structural housing shortage.  The HVAC sector is poised for strong growth, driven by regulatory momentum around energy efficiency, heightened consumer awareness of energy efficiency, the adoption of advanced technologies in renovation and retrofit projects and climate change which is expected to result in increasing temperatures on the Iberian Peninsula.

 

The Group continues to support the local management team in driving organic growth, with a new branch opened in Vic in Catalonia in the first half.  We made positive progress in pursuit of acquisition opportunities in the HVAC and adjacent sectors within the attractive and fragmented Iberian market.  We have the opportunity to be both a consolidator and a compounder in this market with an objective to significantly scale the business over the next five years.

 

Finland Distribution (4.8% of Group Revenue, 2024: 5.7%)

 

	H1 2025	H1 2024		Constant Currency Change*
	£'m	£'m	Change*
Revenue	60.4	65.1	(7.1%)	(5.8%)
Adjusted operating profit before property profit	1.8	4.7	(61.8%)	(61.6%)
Adjusted operating profit margin before property profit	3.0%	7.3%	(430bps)	-

*Change represents the movement between 2025 v 2024 and is based on unrounded numbers.

 

IKH is a leading distributor, based in Finland, of workwear, PPE, tools, and spare parts, with a number two market position in its core tools and PPE segments. 

 

Average daily like-for-like revenue declined by 4.2 per cent compared to prior year primarily due to challenging market conditions, unfavourable weather patterns which reduced sales of seasonal products and temporary operational challenges which affected the internal supply chain which are being decisively and actively addressed. The Finnish construction sector's recovery, following two years of decline, has been slower than anticipated, with a lack of large projects intensifying market competition and new building starts at a 30-year low.  To address supply chain operational challenges in the period, targeted process improvements and inventory management initiatives have been implemented by the new supply chain management team.

 

Gross margin declined in comparison to the same period last year largely due to competitive pricing pressure and sell through of slow-moving inventory at discounted prices.

 

Overheads increased compared to the prior year, driven by inflationary pressure, strategic investments to strengthen the management team and one-off costs related to the implementation of business improvement projects.

 

Adjusted operating profit before property profit declined to £1.8 million (H1 2024: £4.7 million) and adjusted operating profit margin before property profit was 430 basis points lower at 3.0 per cent largely reflecting the decline in sales and gross margin and higher overhead costs.

 

Indicators show that confidence in Finland's construction sector remain very weak with the overall economy expected to see relatively little growth in 2025 before returning to modest levels of growth in 2026.  Operational improvements we are making in IKH, combined with its strong market position, mean it is well positioned to benefit from the recovery in the wider economy. 

 

Anu Ora was appointed as the new CEO of IKH with effect from June 2025. Anu is a highly experienced business leader with extensive experience in the food retail sector and the automotive parts distribution industry in Finland.  Anu, together with recent appointments strengthening the senior management team, will be focused on further reinforcing and developing IKH's proposition in the marketplace.

 

Retail Segment (11.0% of Group Revenue, 2024: 11.5%)

 

	H1 2025	H1 2024		Constant Currency Change*
	£'m	£'m	Change*
Revenue	138.1	130.7	5.6%	7.0%
Operating profit before property profit	19.2	17.2	11.2%	12.2%
Operating profit margin before property profit	13.9%	13.2%	70bps	-

*Change represents the movement between 2025 v 2024 and is based on unrounded numbers

 

The Woodie's DIY, Home and Garden business in Ireland had a strong performance in the first half of the year. Woodie's focused customer proposition supported strong growth across its business as consumer spending remained resilient in Ireland despite macroeconomic uncertainties. 

 

Average daily like-for-like sales were up 7.6 per cent in the first half in comparison to prior year.  Favourable weather conditions underpinned a particularly strong performance in plants and garden related products with some seasonal demand pulled forward into the spring trading months.  Revenue growth of 7.0 per cent, in constant currency, was supported by increases of 5.5 per cent in the number of transactions and 1.5 per cent in average transaction value.  Online sales increased by 34.6 per cent in the first half of the year, representing 4.7 per cent of total sales.

 

Building on the successful introduction of the 'Home Shop in Shop' concept across eleven stores, an additional seven stores were upgraded in the first half of the year.  This continued rollout strengthens the in-store proposition and elevates the customer experience within the home category.  In addition, the Navan store was completely refurbished including an improved store layout. 

 

Gross margin improved in the first half largely due to higher commercial income from suppliers and tight control of costs.  The increased level of revenue led to better overhead efficiency notwithstanding that overheads were higher due to a further increase in the National Minimum Wage and general inflationary pressures.  The business has continued to streamline processes, leverage technology and proactively manage staff rostering to offset the impact of mandated minimum wage increases.

 

Adjusted operating profit before property profit increased to £19.2 million (2024: £17.2 million) in the first half and adjusted operating profit margin before property profit was 70 basis points higher at 13.9 per cent as higher sales and gross margin more than offset considerable cost challenges.

 

While macroeconomic uncertainty persists, the outlook for the second half remains cautiously optimistic, underpinned by continued growth in the Irish economy.  Notwithstanding the impact of US imposed tariffs and any associated economic consequences, the outlook for Irish economic growth remains positive.

 

We continue to explore opportunities to expand our store network in Ireland to complement and strengthen our existing footprint, while also investing in the expansion of our product range to better meet the evolving needs of customers.

 

Manufacturing Segment (4.5% of Group Revenue, 2024: 4.8%)

 

	H1 2025	H1 2024		Constant Currency Change*
	£'m	£'m	Change*
Revenue	56.3	54.6	3.1%	3.2%
Adjusted operating profit before property profit	12.2	11.0	10.9%	11.1%
Adjusted operating profit margin before property profit	21.6%	20.1%	150bps	-

*Change represents the movement between 2025 v 2024 and is based on unrounded numbers

 

CPI EuroMix operates ten manufacturing plants across Great Britain, supplying dry mortar to national, regional, and local housebuilders and their subcontractors.

 

Following a sharp market contraction in 2024, a gradual recovery was anticipated in 2025, supported by ongoing government initiatives to increase housing supply.  The year began strongly, driven by housebuilders increasing output, but momentum eased in the second quarter.  Bulk product volumes, which represent approximately 90 per cent of revenue, increased by 5.7 per cent compared to 2024, driven by higher volumes from housebuilding customers on existing sites. 

 

Overheads increased modestly compared to the prior year, with proactive cost management helping to offset inflationary pressures.  A centralised field service hub is now fully operational across all sites, providing enhanced support and customer service from a single location to strengthen the overall customer proposition and reduce costs.  Adjusted operating profit before property profit delivered strong year-on-year growth, underpinned by higher volumes and improved fixed cost absorption.

 

The timing and extent of recovery in housebuilding, which was anticipated to be weighted to the second half of 2025, remains uncertain.  The medium-term outlook for UK housebuilding remains favourable, underpinned by a structural undersupply of new homes, anticipated interest rate reductions, and ongoing government initiatives to boost housebuilding and reform the planning system.

 

StairBox, the market leading manufacturer of bespoke timber staircases and wooden windows and doors, had good sales growth in the first half of the year in comparison to prior year.  Demand in the RMI market in the UK remains relatively weak as consumer confidence remains subdued.

 

Revenue increased in the first half, despite volumes of bespoke staircases being broadly in line with prior year, largely due to selling price inflation and higher volumes of wooden windows.  Gross margin improved in the first half largely due to tight cost control and relatively stable raw material prices resulting in higher adjusted operating profit before property profit in comparison to the first half of 2024. 

 

While market conditions remain challenging, the business is actively pursuing opportunities to drive sales growth by the launch of a pre-finished range of windows and doors and the commissioning of a new professional spray line, enabling delivery of pre-painted windows with industry-leading lead times.   

 

The consolidated results for the first half of 2025 include five months of trading, representing adjusted operating profit before property profit of £1.0 million, from the Group's MFP piping business in Ireland prior to its divestment on 31 May 2025 to Wienerberger AG which mainly operates through Pipelife Ireland Solutions Limited. The net profit on the disposal of the MFP business was £7.8 million in the first half which is reported under 'Exceptional items'.  As part of the agreement to sell MFP, Grafton will continue an ongoing trading relationship for the supply of products with Pipelife Ireland Solutions Limited.

 

Financial Review

 

Revenue

 

Group revenue was up 10.1 per cent to £1.25 billion from £1.14 billion in the first half of 2025. Group revenue in the like-for-like business increased by 1.4 per cent (£16.2 million) on the prior year.

 

The increase in average daily like-for-like revenue was 2.4 per cent compared to prior year.

 

Incremental revenue from the Salvador Escoda acquisition, which was completed in 2024, increased revenue by £104.2 million. The HSS Hire Ireland acquisition, which completed in May 2025, increased revenue by £2.2 million.

 

New branches opened in 2024 in the Netherlands (four), and UK Distribution (two) contributed revenue of £2.2 million in H1 2025.

 

Currency translation of revenue in the euro denominated businesses to sterling decreased revenue by £9.5 million. The average Sterling/Euro rate of exchange for the six months ended 30 June 2025 was Stg84.23p compared to Stg85.47p for the six months ended 30 June 2024.

 

Adjusted Operating Profit

 

Adjusted operating profit of £91.0 million was up from £83.1 million last year, an increase of £7.9 million (9.5 per cent).  This result for the half year included property profit of £Nil (H1 2024: £Nil).

 

The adjusted operating profit margin before property profit remained constant at 7.3 per cent.

 

Net Finance Income and Expense

 

The net finance expense was £4.2 million which compares to net finance income of £0.3 million for the period ended 30 June 2024.  This incorporates an interest charge of £7.5 million (H1 2024: £7.6 million) on lease liabilities recognised under IFRS 16.  Interest income on cash deposits amounted to £9.1 million (H1 2024: £12.0 million).

 

Returns on deposits and account balances decreased in the half year and reflected lower Bank of England and European Central Bank base rates in the first half of the year compared to the prior year and lower cash balances following the Group's acquisition of Salvador Escoda on 30 October 2024 and completion of recent share buyback programmes.

 

The Group's gross debt is drawn in euro and provides a hedge against exchange rate risk on euro assets in the businesses in Ireland, the Netherlands, Finland, and Spain.  Interest payable on bank borrowings denominated in euro and US Private Placement Senior Unsecured Notes was £4.6 million (H1 2024: £4.1 million).  This reflects a combination of higher bank debt acquired with the Salvador Escoda acquisition offset by lower interest rates payable on bank debt as the European Central bank rates reduced in the first half of the year.

 

The net finance expense included a foreign exchange translation loss of £1.1 million which compares to a gain of £0.9 million in the prior period. The average sterling/euro rate of exchange for the six months ended 30 June 2025 was Stg84.23p (six months ended 30 June 2024: Stg85.47p). The sterling/euro exchange rate at 30 June 2025 was Stg85.55p (30 June 2024: Stg84.64p and 31 December 2024: Stg82.92p).

 

Taxation        

 

The income tax expense of £14.7 million (2024: £14.3 million) is equivalent to an effective tax rate (before the exceptional profit on disposal) of 19.5 per cent of profit before tax (2024: 20.0 per cent).  The rate for the six months ending 30 June 2025, after the exceptional profit on disposal is included, is lower at 17.7 per cent (2024: 20.0 per cent).  The rate is lower than anticipated at the start of the financial year and reflects the blend of the Group's corporation tax on profits in the five countries where the Group operates and is based on the current forecast rate for the full year. 

 

Certain items of expenditure charged in arriving at profit before tax, including depreciation on buildings, are not eligible for a tax deduction.  This factor increased the rate of tax payable on profits above the headline rates.

 

Cash flow

 

Cash generated from operations for the half year of £147.6 million (H1 2024: £161.1 million) was strong and benefitted from a reduction in working capital of £4.9 million (H1 2024: reduction of £22.2 million).  Working capital and inventory is a critical component of our customer proposition; maintaining high levels of stock availability is a key focus for all Grafton's businesses.

 

Interest paid amounted to £12.3 million (H1 2024: £11.7 million) which included interest of £7.5 million on IFRS 16 lease liabilities (H1 2024: £7.6 million). Taxation paid was £16.9 million (H1 2024: £12.4 million).  Cashflow from operations after the payment of interest and taxation was £118.3 million (H1 2024: £136.9 million).

 

The cash outflow on the dividend payment was £51.8 million (H1 2024: £52.2 million) and £28.7 million (H1 2024: £52.6 million) was spent on the buyback of shares.

 

Capital Expenditure and Investment in Intangible Assets

 

The Group continued to maintain appropriate control over capital expenditure which amounted to £16.8 million (H1 2024: £23.3 million).  There was also expenditure of £4.4 million (H1 2024: £2.8 million) on software that is classified as intangible assets.

 

Asset replacement capital expenditure of £11.1 million (H1 2024: £14.6 million) compares to the depreciation charge (before IFRS 16) on property, plant and equipment ("PPE") of £22.9 million (H1 2024: £20.9 million) and related principally to the replacement of distribution vehicles, plant and tools for hire by customers, forklifts, fixtures and office equipment and other assets required to operate the Group's branch network.

 

The Group incurred development capital expenditure of £5.7 million (H1 2024: £8.7 million) on a range of organic development initiatives including new branches and branch upgrades and extensions in Woodie's, Chadwicks and also in the Netherlands. The proceeds received from the disposal of PPE was £0.7 million (H1 2024: £0.7 million). The amount spent on capital expenditure and software development, net of the proceeds received on asset disposals, was £20.4 million (H1 2024: £25.3 million).

 

Pensions

 

The Group operates four legacy defined benefit schemes (one in the UK and three in Ireland), all of which are now closed to future accrual.  The defined benefit pension schemes had an accounting surplus of £1.8 million at the period end, an improvement of £0.5 million from a surplus of £1.3 million at 31 December 2024. 

 

The deficit on the UK scheme reduced by £1.3 million to £7.5 million and the surplus on the schemes in Ireland reduced by £0.8 million to £10.1 million.

 

There was a scheme deficit of £0.8 million (31 December 2024: £0.8 million) related to the Netherlands business. 

 

Net Debt/Cash

 

Net debt (including lease obligations) at 30 June 2025 was £147.3 million (31 Dec 2024: £131.7 million and 30 June 2024: £46.8 million).

 

Our net cash position, before recognising lease liabilities, was £245.8 million (31 Dec 2024: £272.1 million and 30 June 2024: £361.1 million). 

 

The Group's policy is to maintain its investment grade credit rating while investing in organic developments and acquisition opportunities.  The Group has a progressive dividend policy with a long-term objective of maintaining dividend cover at between two and three-times earnings although it is anticipated that dividend cover for the current year will drop modestly beneath this.

 

Liquidity

 

Grafton was in a very strong financial position at the end of the period with excellent liquidity, net cash before IFRS 16 lease liabilities and a robust balance sheet.

  

The Group had liquidity of £765.2 million at 30 June 2025 (31 December 2024: £776.2 million).  As shown in the analysis of liquidity on page 44, accessible cash and deposits amounted to £490.5 million (31 December 2024: £505.4 million) and there were undrawn revolving bank facilities of £274.7 million (31 December 2024: £270.8 million).

 

At 30 June 2025, the Group had bilateral loan facilities of £333.9 million (31 December 2024: £328.3 million) with four relationship banks, which all mature in August 2029 and debt obligations of £136.9 million (31 December 2024: £132.7 million) from the issue of unsecured senior notes in the US Private Placement market.

 

The revolving loan facilities of £333.9 million were put in place in August 2022 for a term of five years to August 2027.  The arrangements included two one-year extension options exercisable at the discretion of the Group and the four banks. The second one-year extension option was agreed in July 2024 and these facilities are now repayable in August 2029.  This is sustainability linked debt funding and includes an incentive connected to the achievement of carbon emissions, workforce diversity and community support targets that are fully aligned to the Group's sustainability strategy.

 

The average maturity of the committed bank facilities and unsecured senior notes was 4.1 years at 30 June 2025 (31 December 2024: 4.6 years).

 

The Group's key financing objective continues to be to ensure that it has the necessary liquidity and resources to support the short, medium and long-term funding requirements of the business.  These resources, together with strong cash flow from operations, provide good liquidity and the capacity to fund investment in working capital, routine capital expenditure and development activity including acquisitions.

 

The Group's gross debt is drawn in euro and provides a hedge against exchange rate risk on euro assets in the businesses in Ireland, the Netherlands, Finland and Spain.

 

Shareholders' Equity

 

Shareholders' equity increased by £13.5 million to £1.61 billion at 30 June 2025 from £1.60 billion at 31 December 2024.  Profit after tax increased shareholders' equity by £68.7 million.  There was a gain of £23.8 million on retranslation of euro denominated net assets to sterling at the period-end rate of exchange.  Shareholders' equity was decreased for a remeasurement loss (net of tax) of £0.9 million on the pension schemes and was reduced for dividends paid of £51.8 million and by £28.7 million for the buyback of shares.  Other changes increased equity by £2.4 million.

 

Return on Capital Employed

 

Adjusted Return on Capital Employed declined by 20 basis points to 10.9 per cent (H1 2024: 11.1 per cent).

 

Principal Risks and Uncertainties

 

The principal risks affecting the Group are set out on pages 47 to 51 of the 2024 Annual Report and Accounts.

 

 

Period End Financial Information

 

The consolidated period-end financial statements presented on pages 16 to 38 comprise:

·      The Group condensed income statement and Group condensed statement of comprehensive income for the six months ended 30 June 2025.

·      The Group condensed balance sheet as at 30 June 2025.

·      The Group condensed cash flow statement for the six months ended 30 June 2025.

·      The Group condensed statement of changes in equity for the six months ended 30 June 2025.

·      The explanatory notes to the condensed consolidated half year financial statements on pages 22 to 38.

 

Grafton Group plc

Group Condensed Income Statement

For the six months ended 30 June 2025

 

	Notes		Six months to 30 June 2025 (Unaudited) £'000		Six months to 30 June 2024 (Unaudited) £'000
Revenue	2		1,252,405		1,137,156
Operating costs			(1,172,576)		(1,065,831)
Property profit	3		-		-
Operating profit before exceptional items			79,829		71,325
Exceptional items	3		7,841		-
Operating profit			87,670		71,325
Finance expense	4		(13,415)		(12,496)
Finance income	4		9,206		12,835
Profit before tax			83,461		71,664
Income tax expense	17		(14,733)		(14,327)
Profit after tax for the financial period			68,728		57,337
Profit attributable to:
Owners of the Company			68,728		57,337
Earnings per ordinary share - basic	6		35.05p		28.43p
Earnings per ordinary share - diluted	6		35.04p		28.41p

 

 

Grafton Group plc

 

Group Condensed Statement of Comprehensive Income

For the six months ended 30 June 2025

 

	Notes		Six months to 30 June 2025 (Unaudited) £'000		Six months to 30 June 2024 (Unaudited) £'000
Profit after tax for the financial period			68,728		57,337
Other comprehensive income
Items that are or may be reclassified subsequently to the income statement
Currency translation effects:
- on foreign currency net investments			23,812		(18,682)
Fair value movement on cash flow hedges:
- effective portion of changes in fair value of cash flow hedges			(299)		23
			23,513		(18,659)
Items that will not be reclassified to the income statement
Remeasurement (loss)/gain on Group defined benefit pension schemes	15		(929)		1,639
Deferred tax on Group defined benefit pension schemes			4		(148)
			(925)		1,491
Total other comprehensive income/(expense)			22,588		(17,168)
Total comprehensive income for the financial period			91,316		40,169
Total comprehensive income attributable to:
Owners of the Company			91,316		40,169
Total comprehensive income for the financial period			91,316		40,169

 

 

Grafton Group plc - Group Condensed Balance Sheet as at 30 June 2025

 

	Notes		30 June 2025 (Unaudited)		30 June 2024 (Unaudited)		31 Dec 2024 (Audited)
ASSETS			£'000		£'000		£'000
Non-current assets
Goodwill	8		649,822		636,759		634,301
Intangible assets	9		137,157		128,123		134,911
Property, plant and equipment	10		374,524		364,026		367,354
Right-of-use asset	11		366,192		381,254		377,726
Investment properties	10		27,481		24,482		27,325
Deferred tax assets	17		7,690		6,336		7,453
Lease receivable			-		49		-
Other receivables	12,16		9,586		-		-
Retirement benefit assets	15		10,128		11,056		10,932
Other financial assets			128		125		125
Total non-current assets			1,582,708		1,552,210		1,560,127
Current assets
Properties held for sale	10		763		4,199		763
Inventories	12		412,842		357,129		381,803
Trade and other receivables	12		376,476		290,540		300,020
Lease receivable			-		103		98
Derivative financial instruments	13		-		17		-
Fixed term cash deposits	13		150,000		150,000		150,000
Cash and cash equivalents (excluding bank overdrafts)	13		344,495		403,398		359,430
Total current assets			1,284,576		1,205,386		1,192,114
Total assets			2,867,284		2,757,596		2,752,241
EQUITY
Equity share capital			6,626		6,860		6,744
Share premium account			225,576		224,131		224,141
Capital redemption reserve			2,683		2,431		2,548
Revaluation reserve			11,939		12,098		12,037
Shares to be issued reserve			7,505		7,998		6,802
Cash flow hedge reserve			(305)		17		(6)
Foreign currency translation reserve			65,995		56,600		42,183
Retained earnings			1,295,372		1,287,473		1,305,649
Treasury shares held			(5,710)		(3,897)		(3,897)
Equity attributable to owners of the Parent			1,609,681		1,593,711		1,596,201
LIABILITIES
Non-current liabilities
Interest-bearing loans and borrowings	13		194,559		192,323		188,372
Lease liabilities	13		318,629		341,283		331,572
Provisions			13,151		12,879		13,042
Retirement benefit obligations	15		8,308		14,893		9,591
Deferred tax liabilities	17		61,924		58,085		62,040
Deferred consideration	16		-		511		599
Total non-current liabilities			596,571		619,974		605,216
Current liabilities
Interest-bearing loans and borrowings	13		53,844		-		49,000
Lease liabilities	13		74,483		66,593		72,156
Derivative financial instruments	13		307		-		5
Trade and other payables	12		506,121		448,532		401,142
Current income tax liabilities			21,224		20,060		20,138
Deferred consideration	16		1,398		3,470		3,537
Provisions			3,655		5,256		4,846
Total current liabilities			661,032		543,911		550,824
Total liabilities			1,257,603		1,163,885		1,156,040
Total equity and liabilities			2,867,284		2,757,596		2,752,241

 

 

Grafton Group plc - Group Condensed Cash Flow Statement

For the six months ended 30 June 2025	Notes	Six months to 30 June 2025 (Unaudited) £'000		Six months to 30 June 2024 (Unaudited) £'000
Profit before taxation			83,461		71,664
Finance income	4		(9,206)		(12,835)
Finance expense	4		13,415		12,496
Operating profit			87,670		71,325
Depreciation	10,11		61,128		55,299
Amortisation of intangible assets	9		12,018		10,900
Share-based payments charge			1,227		2,325
Movement in provisions			(2,257)		(713)
Loss/(profit) on sale of property, plant and equipment			248		(279)
Profit on disposal of Group businesses	16		(15,142)		-
Loss on derecognition of leases			95		55
Other non-cash items			(1,118)		707
Contributions to pension schemes in excess of IAS 19 charge			(1,137)		(763)
Decrease in working capital	12		4,875		22,221
Cash generated from operations			147,607		161,077
Interest paid			(12,334)		(11,722)
Income taxes paid			(16,948)		(12,445)
Cash flows from operating activities			118,325		136,910
Investing activities
Inflows
Proceeds from sale of property, plant and equipment			728		745
Proceeds from sale of Group businesses (net of cash disposed)	16		6,484		-
Maturity of fixed term cash deposits	13		200,000		200,000
Interest received			10,461		11,443
			217,673		212,188
Outflows
Acquisition of subsidiary undertakings (net of cash acquired)	16		(20,454)		-
Investment in fixed term cash deposits	13		(200,000)		(150,000)
Deferred acquisition consideration paid	16		(2,945)		(1,532)
Investment in intangible assets - computer software	9		(4,361)		(2,777)
Purchase of property, plant and equipment	10		(16,791)		(23,261)
			(244,551)		(177,570)
Cash flows from investing activities			(26,878)		34,618
Financing activities
Inflows
Proceeds from the issue of share capital			1,452		272
Proceeds from borrowings			11,958		-
			13,410		272
Outflows
Repayment of borrowings			-		(6,658)
Dividends paid	5		(51,769)		(52,216)
Treasury shares purchased (share buyback)	20		(28,746)		(52,640)
Payment on lease liabilities			(37,457)		(34,888)
			(117,972)		(146,402)
Cash flows from financing activities			(104,562)		(146,130)
Net (decrease)/increase in cash and cash equivalents			(13,115)		25,398
Cash and cash equivalents at 1 January			351,055		383,939
Effect of exchange rate fluctuations on cash held			6,555		(5,939)
Cash and cash equivalents at the end of the year			344,495		403,398
Cash and cash equivalents are broken down as follows:
Cash at bank and short-term deposits	13		344,495		403,398
Bank overdrafts	13		-		-
Cash and cash equivalents at the end of the year			344,495		403,398