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Grafton Group PLC on Tuesday confirmed its annual profit will be in line with market expectations, as cost cuts amplify a small rise in revenue. The Dublin-based building materials distributor and DIY store chain operator reported revenue of £1.96 billion in the 10 months that ended October 31, up 1.7% from £1.93 billion a year before. In constant currency, however, the increase was only 0.3%. Grafton said demand was subdued in the fourth months to the end of October, resulting in a marginal decline in average daily like-for-like revenue from a year before. This included ‘modest price deflation’ in the Distribution businesses in the UK and Ireland. Grafton operates about 360 branches in total of the Selco Builders Warehouse brand in the UK, the Chadwicks and Woodie’s brands in Ireland, the Isero and Polvo brands in the Netherlands, and the IKH brand in Finland. Looking to the full year, Grafton said it is on track to meet market consensus for 2023 operating profit, which it placed at £198.1 million. This would compare to £264.3 million, or £285.9 million on an adjusted basis, in 2022. ‘Our strong focus on cost management mitigated some of the impacts of weaker trading, and we continue to support our customers with excellent value propositions across our portfolio of businesses,’ said Chief Executive Officer Eric Born. Grafton shares were down 0.5% at 780.61 pence in London on Tuesday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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