3rd Sep 2026 12:06
(Alliance News) - Grafton Group PLC on Thursday maintained its full-year adjusted operating profit guidance, after reporting increased adjusted earnings for the first half.
The Dublin-headquartered building materials distributor's revenue for the first six months of 2026 totalled GBP1.34 billion, up 6.7% from GBP1.25 billion the prior year.
Grafton noted "strong underlying trading and acquisition contributions on the island of Ireland and in Iberia [which] more than [offset] challenging market conditions elsewhere, particularly in Great Britain." Trading in Great Britain suffered from "weak construction activity, subdued consumer confidence and heightened economic and geopolitical uncertainty continuing to weigh on demand", the company said.
Pretax profit fell 6.9% to GBP77.7 million from GBP83.5 million, while operating profit fell 5.4% to GBP82.9 million from GBP87.7 million.
Grafton booked no income from exceptional items, against GBP7.8 million the year before. Costs from acquisition-related items surged on-year to GBP3.2 million from GBP383,000, and amortisation of intangible assets arising on acquisitions increased to GBP12.4 million from GBP10.8 million.
Adjusted operating profit, which excludes exceptional items and other measures, climbed 8.2% to GBP98.5 million from GBP91.0 million. Adjusted operating profit before property profit rose 8.0% to GBP98.3 million from GBP91.0 million. Adjusted pretax profit increased 7.1% to GBP93.0 million from GBP86.8 million.
Grafton declared an 11.00 pence per share interim dividend, up 2.3% from 10.75p a year before.
Looking ahead, Grafton maintained its full-year adjusted operating profit guidance of GBP190 million to GBP200 million. Company-compiled analyst consensus forecasts around GBP194.2 million, within a range of GBP191.0 million to GBP199.0 million.
"Despite a relatively slow start to the year, we are pleased to have grown revenue, adjusted operating profit and margin in the first half of 2026 and to be in a position to reaffirm that we remain on track to deliver full year adjusted operating profit...whilst recognising the important Autumn trading season is still to come," commented Chief Executive Officer Eric Born.
He continued: "Our outlook for the second half is not dissimilar to H1, with Iberia and Island of Ireland strong, Northern Europe mixed and continuing weakness in Great Britain.
"Our medium-term outlook remains very positive supported by structural housing deficits in each of our markets and, in many cases, pent up demand for [repair, maintenance & improvement]."
Grafton shares, having opened 2.6% higher, were down 1.6% at 995.40 pence by midday Thursday in London.
By Emma Curzon, Alliance News reporter
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