BUILDERS MERCHANTS: A-Z GRAFTON G Grafton
GRAFTON THE NUMBERS
2019 Turnover £m Gross profit £m
Operating profit £k Net profit £k Staff
THE RATIOS 2019 Stockturn Gross margin %
Operating margin % Net margin % Sales/head £k Profit/head £
Return on capital % BMJ INDEX
7.8
25.3 1.3 1.7
235
6,441 7.1
2020 7.0
25.1 0.3
(0.1) 237
1,739 (0.5)
2021 5.9
26.6 1.9
3.8 312
12,575 14.2 298
In July 2021, Grafton announced the sale of its Traditional Merchanting Brands, namely, Buildbase, Civils & Lintels, PDM Buildbase, The Timber Group, Bathroom Distribution Group, Frontline and NDI brands to Huws Gray. The figures quoted above include these brands. In the year to 31 December 2021, the Traditional Merchanting Business reported revenue of £828.2 million (2019: £1.02 billion) and adjusted operating profit of £18.8 million (2019: £33.3 million). The group’s UK & Irish distribution business now comprise Selco and Leyland SDM in the South East, Midlands and North of England; Chadwicks in the Republic of Ireland, and MacBlair in Northern Ireland. There is also Doorways Architectural in Belfast,
932.9 236.1
25,595 15,413 3,974
2020
768.9 193.2 5,639 (969) 3,242
2021
968.8 257.3
39,097 36,654 3,109
GRAFTON % CHANGE
2020 (18) (18) (78) n/a (18)
% CHANGE
2020 (10) (1)
(78) n/a 1
(73) n/a
2021 (16) 6
593 n/a 31
623 n/a
2021 26 33
593 n/a (4)
Heron House Corrig Road Sandyford Business Park Dublin 18 D18 Y2X6
+353 (0) 1 216 0600
www.graftonplc.com
Subsidiaries (UK distribution): Doorways, Leyland SDM, McBlair, Selco,TG Lyne, Watershed
Branches: 127 Employees: c 3800
CEO: Eric Born CFO: David Arnold Selco managing director: Howard Luft Leyland SDM CEO: Martin Hastings
Selco branches: 68 Employees: 2900
Watershed, the bathroom division of MacNaughton Blair Limited with a network of 7 showrooms across Northern Ireland. There’s also TG Lynes, the mechanical services, heating, plumbing and air movement, which celebrated its 110th anniversary in 2022. Grafton’s 2022 results were released just too late for the Trailblazers tables, however, the group turned over £2.3bn in the 12 months to December 31 2022. When compared with the adjusted figures for 2021 (without the former Traditional Merchanting businesses), this was an increase of 9.1%.
UK Distribution, with revenue of £838.6m was responsible for 36.5 per cent (2021: 39.0 per cent) of Group revenue, Irish Distribution 26.9 per cent
New Selco and Leyland SDM
Leyland SDM branches: 29 Employees: 360
Members of: BMF
branches contributed revenue of £15.9 million and the acquisitions in Northern Ireland of the P. McDermott & Sons branch in Omagh, acquired in 2021, and Woodfloor Warehouse, acquired in 2022, contributed revenue in the year of £17.4 million. Demand was also affected by a post-pandemic shift away from spending on improving indoor and outdoor living space, that drove the rise in RMI activity in 2021. Non-essential RMI spending on the home was the part of the Selco market that was most
exposed to cutbacks on spending as homeowners opted to defer expenditure until visibility on the prospects for the economy and for their personal finances improved. Branches in London and the South East performed more strongly than those in the regions. The branches that were opened in 2021 in Canning Town and Rochester substantially outperformed plan. Selco added branches in Exeter in April and Cheltenham in December to increase the estate to 74 branches. A new branch in Peterborough will open in April 2023. However, given the weaker growth outlook for the UK economy, the roll-out plans for new branches has been scaled back.
CEO Eric Born said: “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.”
April 2023 A supplement to builders merchants journal 23
TRAILBLAZERS
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