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Sep 28, 2018 | General News

£m* 2017 2016 Change
Revenue** 2,716 2,496 +9%
Operating profit before property profit 160.9 137.1 +17%
Operating profit 163.7 142.0 +15%
Profit before tax 157.2 136.2 +15%
Earnings per share – basic 54.9p 47.7p +15%
Statutory results
Operating profit 160.9 120.1 +34%
Profit before tax 154.5 114.2 +35%
Earnings per share – basic 54.0p 39.6p +36%
Dividend 15.50p 13.75p +13%
Net debt 62.9 96.3 (£33.4m)
Gearing 5% 9% (400bps)
Adjusted operating margin before property profit 5.9% 5.5% +40bps
Return on capital employed 13.6% 12.5% +110bps


*Additional information in relation to Alternative Performance Measures (APMs) is set out on pages 31 to 34.**2016 revenue has been updated to reflect a change in the presentation of rebates payable to customers and the segmental presentation has also been updated. There was no impact on operating profit as a result of this change.***The term “adjusted” means before amortisation of intangible assets arising on acquisitions and exceptional items of £19.7 million in 2016.


Financial Highlights

  • Record revenue reflects strong organic growth
  • Adjusted Group operating profit before property profit up 17%
  • Growth in profitability in all segments and geographies:
  • Strong organic growth in Irish Merchanting, Woodie’s DIY and Mortar Manufacturing
  • Acquisitions and organic growth increase scale and profitability of Dutch merchanting business
  • Continued investment in Selco with a record number of branch openings
  • Traditional UK Merchanting business benefits from growth and prior year restructuring
  • Record cash from operations of £210.7 million (2016: £168.6 million) finances investment and strengthens balance sheet
  • Investment of £119.1 million (2016: £72.3 million) on capital expenditure and acquisitions
  • Progressive dividend policy – growth of 121% over the past five years


Gavin Slark, Chief Executive Officer commented:

2017 was a very good year for Chadwicks Group (formerly GMROI) that saw all segments and geographies contribute to strong revenue growth and a 15% increase in adjusted profit before tax and earnings per share. Our expectations are positive for the current year and we remain confident about the potential to take advantage of opportunities that create value for shareholders.


Webcast details

An analysts and investors results presentation will be hosted by Gavin Slark and David Arnold at 10.00am (GMT) today 1 March 2018 at the London Stock Exchange, 10 Paternoster Square, London EC4M 7LS. A live webcast will be available on and we recommend you register in advance. A recording of this webcast will also be available to replay later in the day. The results presentation can be viewed/downloaded at



Chadwicks Group (formerly GMROI)

+ 353 1 216 0600 Gavin Slark,

Chief Executive Officer

David Arnold,

Chief Financial Officer


Murray + 353 1 498 0300 Pat Walsh


MHP Communications + 44 20 3128 8100 James White


Cautionary Statement

Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied by these forward looking statements. They appear in a number of places throughout this announcement and include statements regarding the intentions, beliefs or current expectations of Directors and senior management concerning, amongst other things, the results of operations, financial condition, liquidity, prospects, growth, strategies and the businesses operated by the Group. The Directors do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.



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You can raise your concerns through the dedicated SpeakUp website here.

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