Trading Performance
Group revenue for the year ended 31 December 2019 was up 10 per cent to £542 million (2018: £491 million). Excluding the impact of Edenhall, which was acquired in December 2018, revenue grew 3 per cent.
Sales in the Public Sector and Commercial end market, which represented approximately 69 per cent of Group revenue, were up 15 per cent compared with the prior year period. The performance of Edenhall has been strong and the integration plan is substantially complete.
Sales in the Domestic end market represented approximately 26 per cent of Group revenue and were flat compared with 2018. These results are ahead of the overall Domestic market in 2019. The survey of domestic installers at the end of October 2019 revealed order books of 10.9 weeks (2018: 10.8 weeks) which compared with 11.5 weeks at the end of June 2019. The Domestic market was softer in the second half and suffered from the poor weather. However, continued execution of the 2020 Strategy more than compensated by improving Group margins.
During the year, the Group launched its new 5 year Business Strategy. The objective continues to be to deliver sustainable growth, whilst maintaining a strong balance sheet with a flexible capital structure and a clear capital allocation policy.
Dividend
The 2019 interim dividend of 4.70 pence per share, announced on 15 August 2019, was paid on 4 December 2019 to shareholders on the register at the close of business on 18 October 2019.
Outlook
The Board confirms it is confident of meeting its 2019 expectations.
Looking ahead, the outcome of the UK General Election in December 2019 has created a more certain political environment and the underlying indicators in the New Build Housing, Road, Rail and Water Management markets remain supportive. The Group continues to outperform the Construction Products Association's (“CPA”) growth forecasts.
The Group's Business Strategy is underpinned by strong market positions, focused investment plans and an established brand.
The Board intends to issue its full year Preliminary Announcement on 12 March 2020.