DIY firm Grafton reinstates dividend with £30m shareholder payout
Grafton Group, the owner of Leyland DIY stores, announced this morning that it will reinstate its dividend after the £30m shareholder payout was previously halted to preserve cash during the pandemic.
The FTSE 250 builders merchant firm said the previously suspended second interim dividend for 2019 will now be paid on 19 February.
The dividend was due to be paid on 6 April last year but Grafton decided to pause payouts to preserve liquidity in response to the coronavirus pandemic.
Last week the firm announced that revenue and profitability in the two months to 31 December 2020 were ahead of expectations, reflecting an increased interest in DIY projects during lockdown.
Group daily average like-for-like revenue was up 7.2 per cent and total revenue jumped 10.8 per cent to £429.4m, up from £396.7m the previous year.
Grafton said adjusted operating profit is expected to exceed current consensus of £174m by more than five per cent.
It had a strong year end net cash position and “excellent liquidity”, with all stores continuing to trade throughout lockdown due to their essential supplier status.
Grafton chief executive Gavin Slark said last week: “I greatly appreciate the way that colleagues across the group have responded to the pandemic and thank them most sincerely for their exceptional commitment, hard work and support that enables our businesses to trade in a safe environment.
“We are very encouraged by the strong recovery and performance of the group in the second half of the year.
“Despite the uncertainties related to the pandemic, we believe Grafton is well placed for continuing progress in the year ahead supported by our very strong financial and market positions.”