Figma Shares Indicated To Open $105/$110
Investing.com -- Shares of Grafton Group PLC surged by 7% after the company reported 2024 results that surpassed consensus expectations.
The company’s underlying operating profit, which includes property profits, was approximately £178 million, compared to the consensus estimate of around £170 million and a forecast of approximately £169 million.
The underlying profit before tax (PBT) also exceeded estimates, coming in at around £179 million against an anticipated £166 million. The improvement in Grafton’s financial position was further underscored by a better-than-expected net debt figure.
The group reported net debt of £132 million, including IFRS 16, or a net cash position of approximately £272 million when excluding IFRS 16. This compares favorably to the estimated net debt of £207 million or a net cash position of £222 million, driven by strong free cash flows (FCFs).
The dividend per share (DPS) was announced at 37 pence, a 2.8% increase, and management has unveiled a new share buyback program of approximately £30 million, reflecting the company’s robust balance sheet.
Citi analysts commented on the results, stating, "We do not expect significant changes to consensus for 2025 at the operating level with the underlying outlook largely in line, expecting robust trends in Ireland and Spain, modest recovery in Netherlands and ongoing caution in UK RMI markets. Stock trades on an EV/EBIT of 10x for 2025e also supported by new buyback.
We believe current expectations look sensibly cautious and a firmer outlook is likely following spring trading."
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