Grafton Group (GFTU) Trading Update summary

Trading and financial performance

• Group revenue rose 7.8% to £773.1 million, up 9.0% in constant currency, aided by the Salvador Escoda acquisition.

• Average daily like-for-like revenue increased 2.7% year-on-year, with retailing up 10.0% and manufacturing up 6.5%.

• Distribution saw mixed results: Ireland +3.5%, UK -0.3%, Netherlands +2.9%, Finland -0.8%, Spain (pro-forma) +6.8%.

• Trading improved in recent months, offsetting earlier weather impacts; strong performance in retail and manufacturing.

• Analyst consensus for 2025 adjusted operating profit is circa £185.9 million.

Strategic developments and outlook

• Salvador Escoda acquisition in Spain provided an 8.5% revenue contribution and a foothold in a growing market.

• Integration of Salvador Escoda progressing well, with strong project-related sales and favorable market conditions.

• Group remains on track to meet full-year expectations, with a strong balance sheet supporting future growth.

• Positive medium-term fundamentals driven by housing shortages and expected RMI demand recovery.

• Actively evaluating further organic and acquisition opportunities across all markets.

Market and segment highlights

• Ireland's construction PMI hit a three-year high at 53.9, with strong government support for housing and infrastructure.

• UK distribution saw modest price inflation (1-2%) but subdued RMI demand, especially in Greater London.

• Woodie's DIY in Ireland delivered excellent growth, especially in garden products, due to strong consumer spending.

• CPI EuroMix and StairBox in the UK reported strong sales growth, supported by increased housebuilding activity.

• Export sales to Estonia partially offset weaker seasonal sales in Finland.