2 August 2022
Half year results for the six months ended 30 June 2022
Good first half performance driven by operational and strategic delivery
- Continued progress towards the Group's ambition to become the leading partner to the construction industry
- Good first half performance with revenue of £2,535m up 10.3% and adjusted operating profit of £163m broadly in line with prior year
- Adjusted earnings per share up 11.7% to 51.6p resulting from reduced share count
- Market outperformance in Merchanting with revenue growth of 13.3% and adjusted operating profit growth of 9.0% against a strong comparative period
- Toolstation revenue (4.6)% lower due to reduced DIY sales post-pandemic. Financial performance also reflects significant recent investment in network rollout.
- Positive early momentum towards achieving SBTi accredited carbon reduction targets
- Lease-adjusted leverage (net debt / EBITDA) of 1.75x, in the middle of the target range
- Interim dividend of 12.5 pence per share (2021: 12.0 pence per share)
|£m(unless otherwise stated)||Note||H1 2022||H1 2021*||Change|
|Like-for-like revenue growth1||17f||7.9%||44.1%|
|Adjusted operating profit1||17a||163||164||(0.6)%|
|Adjusted earnings per share1||10b||51.6p||46.2p||11.7%|
|Adjusted ROCE (12-month rolling)1||17e||13.9%||12.1%||1.8ppt|
|Adjusted ROCE excluding property profits (12 month rolling)1||11.8%||10.9%||0.9ppt|
|Net debt / adjusted EBITDA1||17c||1.75x||1.50x||(0.25)x|
|Ordinary dividend per share||11||12.5p||12.0p||4.2%|
|Total profit / (loss) after tax||106||100|
|Basic earnings / (loss) per share||10a||49.7p||41.5p|
(1) Alternative performance measures are used to provide a guide to underlying performance. Details of calculations can be found in the notes listed
* The Retail and Plumbing & Heating segments are treated as discontinued operations in the prior year comparatives
Nick Roberts, Chief Executive Officer, commented:
“The Group has delivered a good performance during the first half of the year, once again demonstrating the capability to navigate challenging market conditions.
Our Merchant businesses continue to perform well, taking market share and extending their market leading positions by developing the customer proposition to meet changing requirements within their markets.
Toolstation’s customer base returned to its core trade customer in the period following exceptional trading during the pandemic. We have made great progress in enhancing the trade offer in Toolstation and customers have responded positively. We remain as confident as ever in the long term growth potential of the business and in our UK investment programme, whilst also increasing investment in Toolstation Europe to take advantage of the opportunities we see in those markets.
Whilst we are cognisant of the current macroeconomic uncertainty, our diverse end market exposure, broad trade customer base and strong balance sheet provide resilience against changes in market conditions. The strong performance of our Merchant businesses is set to continue into the second half, driven by our agility in managing inflation and by our leading service propositions. This will be offset by a combination of the normalisation of Toolstation’s customer base and the increased investment in the Toolstation growth opportunity in the UK and Europe. As a result, we expect the Group overall to deliver a full year performance broadly in line with market expectations.”
Management are hosting a results presentation at 8.30am. The presentation will also be available via a webcast - please register at the following link:
+44 (0) 7990 088548
+44 7855 432699