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Grafton Group PLC on Wednesday said business in the UK and Finland remains challenging, but it is confident that its medium-term outlook is positive. The Dublin-based building materials distributor and DIY retailer said revenue was down 3.7% on-year to £1.82 billion in the just under 10 months from January 1 to October 20, with the company highlighting a weaker euro, an important billing currency. Grafton expects adjusted operating profit in 2024 to be broadly in line with market expectations, which it cites at £170.4 million with a range of £165.0 million to £174.0 million. It would be around 17% lower than £205.5 million in 2023. ‘Whilst a number of leading indicators across our markets are turning more positive, we are yet to see any pronounced improvement in volumes outside Ireland and the timing of a broader recovery remains uncertain,’ Grafton said. ‘In the meantime, we continue to retain a tight focus on costs and efficiencies while continuing to benefit from the geographic diversification of the group.’ Separately, Grafton said it completed the acquisition of Salvador Escoda SA from Escoda Sans. Salvador Escoda is a distributor of air conditioning, ventilation, heating, water and renewable products serving professional installers across the residential, commercial and industrial sectors. Grafton will pay a maximum of €132.0 million, with €128.0 million payable at completion and a further €4.0 million payable subject to the financial performance of Salvador Escoda. Grafton Chief Executive Officer Eric Born said: ‘The purchase of Salvador Escoda is an excellent fit with Grafton’s strategy of acquiring platform businesses in new markets which possess strong and unique propositions with the opportunity to drive further growth and scale. We see long term structural growth in the Spanish economy and in its fragmented distribution markets for building and construction products.’ Grafton shares were up 4.9% to 1,048.80 pence each on Wednesday afternoon in London. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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