Grafton Group (GFTU) Trading Update summary

Trading and performance

• Group revenue for H1 2024 was £1.14 billion, down 4.4% year-on-year and 3.0% lower in constant currency.

• Average daily like-for-like revenue declined 4.5% compared to the prior year, reflecting challenging trading conditions.

• Profitability is expected to be more weighted to the second half of the year, with management actively managing gross margins and costs.

• Strong financial position supports ongoing pursuit of inorganic growth opportunities in Europe.

• Medium-term industry outlook remains positive, with confidence in future growth.

Segmental performance

• Ireland distribution saw a return to growth in Q2, with 5.4% volume growth and strong housing market activity.

• UK distribution faced continued weakness, with like-for-like revenue down 7.7% and cautious consumer spending.

• Netherlands distribution partially offset declines with growth from large construction projects; housing market shows improvement.

• Finland distribution revenue fell 7.7% due to economic and construction sector weakness, but outperformed the market.

• Retailing in Ireland (Woodie's) improved profitability through margin and cost control despite softer sales.

Manufacturing and other highlights

• UK manufacturing saw a 21.8% drop in like-for-like revenue, reflecting lower housebuilding and RMI activity.

• StairBox improved profitability due to margin management and the TA Windows acquisition, despite lower volumes.

• Group continues to focus on strengthening market positions and adding high-quality, cash-generative businesses.

• Operating leverage expected to benefit as macroeconomic conditions improve.

• Grafton operates around 360 branches with approximately 9,000 employees across the UK, Ireland, Netherlands, and Finland.