Grafton Group plc have announced a second interim dividend of 12.5p (2018: 12.0p) which will be paid to give total dividends for the year of 19.0p representing an increase of 5.6 per cent on dividends of 18.0p paid for 2018. This increase is in line with the Board's progressive dividend policy and reflects both the Group's strong cashflow from operations for the year and its pre-IFRS 16 net cash position at the year end. Dividend cover was 3.5 times (2018: 3.5 times).
Revenue in continuing operations up 3% to £2.7 billion - 2.9% growth in constant currency
Operating profit in continuing operations up 4% to £194.3 million on a pre-IFRS 16 basis
Strong organic growth in Merchanting and Retailing businesses in Ireland
Significant growth in profitability in Netherlands business and increase in scale with Polvo acquisition
Softer trading in UK merchanting business, particularly in H2 on weaker economy and RMI market
Reshaped our portfolio with successful disposal of Plumbase and Belgian Merchanting business
Strong pre-IFRS 16 cash flow from operations of £219.1 million (2018: £209.2 million) and net cash of £7.8m at year end
Implementation of IFRS 16 standard on accounting for leases has no economic impact on Group but has changed the measurement of many aspects of the Group's accounts
