The company still faces many of the external challenges experienced in 2022.

Grafton had a successful 2022 as its end of year results reveal a strong financial result ahead of market expectations. 

Despite macro-economic challenges in its markets, the Group continued to perform well with operating profit close to last year’s record result against a less favourable market backdrop.

Operational highlights:     

  • Excellent performance in distribution businesses in Ireland and the Netherlands
  • Volumes and profitability lower in Selco against a strong comparative period and softer backdrop
  • Revenue and profitability normalised in Woodie’s DIY, Home and Garden retail business
  • UK manufacturing businesses performed well
  • Further progress made against sustainability targets
  • Diversified revenue base with over half generated in Ireland, the Netherlands and Finland.

Financial highlights:

  • 11.3% operating profit margin before property profit
  • Adjusted return on capital employed of 17.2%. Slight decline in adjusted operating profit (before property profit) to £260.5 million as expected
  • Double digit/high single digit operating profit margin in all businesses (before property profit)
  • High cash conversion with cashflow of £278.8 million from operations
  • £208.9 million returned to shareholders during year through share buybacks and dividends
  • Net cash at 31 December 2022 of £458.2 million
  • Annual dividend per share growth of 8.2%.

Eric Born, Chief Executive Officer, said: “In my first set of results, I am pleased to report a strong performance by the Group which is ahead of market expectations.

"This is a great achievement by my new colleagues across the business and is testament to their dedication and professionalism. It has also confirmed the qualities of the business which attracted me to join Grafton.

“We still face many of the external challenges that we faced in 2022, but I am encouraged by the quality of the Group’s portfolio of higher margin businesses that are sensibly positioned with both market leading brands and geographic diversity. We now have more than half of our revenues coming from outside the UK in Ireland, Finland and the Netherlands.

“Importantly, with a very strong balance sheet, Grafton is well positioned to invest in future growth opportunities and we look forward with confidence.”