12th Nov 2015 08:00
LONDON (Alliance News) - Builders' merchant and DIY group Grafton Group PLC on Thursday said its trading in the second half of 2015 has been positive against a competitive market backdrop, but that the tough UK market and weakness in Belgium has resulted in a cut to its operating profit outlook.
FTSE 250-listed Grafton said it still delivered like-for-like growth in the UK in the four months to the end of October, but the market remains very competitive. This, plus ongoing weakness in its operations in Belgium, mean it has cut its operating profit expectations for 2015 by 3-4% against market consensus.
Grafton said its UK merchanting business showed solid growth in like-for-like revenue in the second half, but the competitive nature of the market is putting pressure on margins. Irish trading was strong, benefiting from the robust domestic market, but the Belgian market remains weak and the group saw volumes and margins weaken.
"With the continued progress of our organic initiatives including the development of Selco, bolt on acquisitions in the UK and the creation of a new platform for growth with the purchase of Isero in the Netherlands, we remain confident in the group's ability to deliver continuing growth in profitability," said Gavin Slark, Grafton's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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