Grafton Group (GFTU) Trading Update summary

Trading and financial performance

• Group revenue rose 10.1% to £1.25 billion, with 11.1% growth in constant currency, reflecting contributions from recent acquisitions.

• Average daily like-for-like revenue increased 2.4% year-on-year, with momentum building after a slow start but easing from mid-May due to global uncertainties.

• Segment performance: Ireland +3.7%, UK +0.2%, Netherlands +2.8%, Finland -4.2%, Spain (pro-forma) +6.9%, Retailing (Ireland) +7.6%, Manufacturing +5.2%.

• Retailing in Ireland saw strong growth, driven by resilient consumer spending and favorable weather, especially in garden products.

• Manufacturing benefited from increased housebuilding volumes, though momentum slowed in Q2.

Strategic developments and acquisitions

• Integration of Salvador Escoda in Spain and HSS Hire Ireland is progressing well, broadening offerings and leveraging scale in fragmented markets.

• New CEO appointed for IKH in Finland to strengthen market position after a challenging period.

• Continued evaluation of organic and acquisition-led growth opportunities, supported by strong cash flow and balance sheet.

Shareholder returns and capital management

• Sixth share buyback programme completed, repurchasing 3.29 million shares for up to £30 million.

• Total of £403.3 million returned to shareholders since May 2022, representing 19.4% of shares in issue at the start of buybacks.