Grafton posts record H1 profits, reinstates dividend

Building materials and DIY group Grafton on Wednesday reported record profits and reinstated its dividend after a strong performance from its Woodies business in Ireland.

The company said adjusted pre-tax profits soared 340% to £148.6m on revenues up 46.1% to £1.02bn. A dividend of 8.5p a share was declared.

Full-year guidance was reiterated for adjusted operating profit from continuing operations of £240m. Grafton warned that itr expected disruption to supply chains to continue over the coming months as companies wrestled with a lack of freight capacity due to the Covid-19 pandemic.

"The overall outlook for the Grafton businesses is positive given the strength of our current market positions, geographic diversity, strong balance sheet and investment pipeline, alongside supportive sector and macro trends together with the successful rollout of vaccines to date in the four countries where the group now operates," said chief executive Gavin Slark.