10th Nov 2022 10:58
(Alliance News) - Grafton Group PLC on Thursday backed yearly guidance and unveiled a new share buyback.
Average daily like-for-like revenue grew 1.8% annually at constant currency during the period from July 1 and October 31. It was up 17% from three years earlier, before the onset of the pandemic.
"The favourable first half revenue trends in the Distribution businesses in Ireland and the Netherlands continued against the backdrop of solid underlying demand and building materials price inflation. Trading conditions continued to be softer in the UK distribution business as households reduced discretionary spending on home improvements. Revenue in the Finnish distribution business was ahead of a strong prior year comparator. Trading normalised in line with the prior year in the DIY, Home and Garden business in Ireland and the UK Manufacturing business continued to perform strongly," the building materials firm and DIY retailer said.
"Overall average daily like-for-like revenue in the period was slightly stronger against the prior year than the performance in the second quarter of 2022. The group continued to benefit from the geographic diversity of its markets, with over half of revenue derived in Ireland, the Netherlands and Finland."
In its UK Selco Builders Warehouse arm, average daily like-for-like revenue declined by 6.1%. It said building materials sales price inflation "moderated" and household discretionary and non-essential spending fell.
Looking ahead, Grafton still expects adjusted operating profit in line with analysts forecasts, around GBP266 million, for 2022.
In addition, it announced plans for a further buyback of up to GBP100 million.
Grafton shares were 6.8% higher at 776.08 pence each in London on Thursday morning, among the best FTSE 250 performers.
By Eric Cunha; [email protected]
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