|
Grafton Group PLC on Tuesday said it traded in line with expectations in 2025, despite a backdrop of ‘challenging macroeconomic conditions’. The Dublin-based building materials distributor in a trading statement said revenue for the year rose 10% to £2.52 billion from £2.28 billion. It expects adjusted operating profit in line with expectations, putting consensus at £181.9 million. This would represent adjusted operating profit of 2.5% from £177.5 million. Chief Executive Officer Eric Born said: ‘Despite continuing headwinds in some of our markets, the Group delivered a solid performance in Q4 and an outcome in line with expectations for the full year. It reflects the strong market positions, resilience and agility of our operations across our geographies.’ Grafton noted its ‘diversified portfolio’ which helped insulate it from ‘challenging macroeconomic conditions which are affecting certain markets’. Average daily like-for-like revenue for the year was 1.7% higher than the prior year. In the first 10 months of the year, it rose 2.1%, but progress cooled to only a 0.1% expansion in the final two months of 2025 amid a ‘continuing easing of activity in the second half of the year’. ‘A robust performance in Iberia along with modest growth in the Island of Ireland was fully offset by weaker trading in Northern Europe and Great Britain in the period,’ Grafton added. Grafton said it has adopted a new reporting structure, which it believes ‘better reflects the group’s strategy’. The structure has four geographic operating segments, Island of Ireland, Great Britain, Northern Europe and Iberia. ‘Comparative figures for 2024 and 2025 will be restated in the group’s full year 2025 results to reflect the new structure. The realignment has no impact on the group’s consolidated financial results,’ it added. Grafton said a ‘meaningful recovery’ failed to materialise in Great Britain and Northern Europe last year, with the timing of any pick-up in 2026 remaining uncertain. ‘We will continue to manage our business with a tight focus on efficiency and cost control. Although momentum continued to moderate across the second half of the year, the outlook for Grafton remains favourable, supported by structural growth drivers, strong market positions across all regions, the recovery potential in Great Britain and Northern Europe, a robust balance sheet, and a healthy acquisitions pipeline,’ Grafton said. Grafton shares fell 0.6% to 913.30 pence each in London on Tuesday morning. The firm releases annual results on March 5. Copyright 2026 Alliance News Ltd. All Rights Reserved.
|
