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Grafton upbeat on Irish operations as UK softens

Grafton's CEO Gavin Slark said he expects a continuation of the positive trading conditions in its markets in Ireland and the Netherlands
Grafton's CEO Gavin Slark said he expects a continuation of the positive trading conditions in its markets in Ireland and the Netherlands

Builders merchanting and DIY group Grafton says group revenue was up around 2.4% to £1.48 billion for the first six months of the year.

In a trading statement, Grafton said that market conditions in the UK "were softer than anticipated" in May and June but said its expectations for full year profits "remain broadly unchanged".

The group's brands include Chadwicks, Woodies and Heiton Buckley in Ireland and Selco, Buildbase, Plumbase, Leyland SDM, MacBlair and CPI EuroMix in the UK.

Grafton said its like-for-like group revenue increased by 3.9% in the six month to the end of June.

Grafton said revenues - when reported in sterling - from its Irish merchanting operations rose by 6.7% for the six month period, while they increased by 1.4% in the UK, 0.3% in Belgium and 5.4% in the Netherlands.

Revenues at its retail operations increased by 2.2% in the six month period, while its manufacturing operations saw a 2.1% rise in revenues. 

Gavin Slark, chief executive Grafton Group, said that after a strong start to the year the company saw some easing of trends in recent months. 

But Mr Slark said the company expects a continuation of the positive trading conditions in its markets in Ireland and the Netherlands. 

"Activity over the summer in the UK will be an important determinant of momentum entering the significant trading months of September through to November. Our current expectations for full year profitability, including the benefit of the recently completed Polvo acquisition, remain broadly unchanged," the CEO added.