8th May 2006 12:30
Grafton Group PLC08 May 2006 Grafton Group plc Statement by the Chairman, Mr. Michael Chadwick To the Annual General Meeting Held on 8 May 2006 Grafton Group is pleased to report that trading for the four months to the endof April 2006 has been in line with Group expectations. The Irish Merchanting business has had an excellent start to the year continuingto benefit from the very favourable economic environment and record levels ofactivity in the residential construction and repair and maintenance markets.Like for like sales growth has been strong across the Chadwicks and HeitonBuckley branch networks. Davies and Garvey's, which were acquired at the end of2005, are performing ahead of pre-acquisition expectations. DIY continues to be a strong growth segment of the Irish retail market. Althoughthe sector remains competitive, due to the recent significant increase in DIYstores, the Group has continued to grow its DIY sales. The new Woodie's DIYstore in Castlebar has traded satisfactorily. The UK Merchanting market continues to reflect the softer trading conditionsbeing experienced in the construction sector in the UK. It is anticipated thatfirst half sales in the UK will be up although, as previously indicated, likefor like sales will be below the levels achieved in the first half of 2005. Theimproving macro economic data emerging in the UK should be positively reflectedin Group trading in the second half of the year. Developments since the start ofthe year in the UK involved the completion of four bolt-on acquisitions tradingfrom six locations and the opening of six merchanting branches. The Group continues to be confident about the prospects for its Irish and UKbusinesses and is well placed to participate in the further consolidation of theUK and Irish Merchanting markets. Ends 8 May 2006 Michael Chadwick Joe MurrayExecutive Chairman Murray ConsultantsGrafton Group plc Telephone:(++353) (01) 498 0300 Telephone: (++353) (01) 216 0600 Colm o Nuallain Ginny PulbrookFinance Director Citigate Dewe RogersonGrafton Group plc Telephone:(++44) (0207) 282 2945Telephone: (++353) (01) 216 0600 A copy of this statement is also available on our website www.graftonplc.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Grafton Group