6th Jul 2005 07:00
Grafton Group PLC06 July 2005 Grafton Group plc Trading Statement for the Six Months ended June 30th, 2005 Trading in the first six months of the year is in line with market expectations.Heiton Group plc has performed ahead of last year's levels since being acquiredin January. Substantial progress is being made on the realisation of integrationbenefits. The Irish merchanting businesses are achieving high single digit like for likesales growth in a favourable trading environment. The importance of Irishmerchanting as a contributor to the Group has increased significantly in thisperiod following the successful Heiton acquisition and the continued strength ofthe Irish economy. DIY sales are growing on the back of new store openings and relocations tolarger outlets. As previously highlighted, the opening of new stores by all ofthe principal DIY traders is making the Irish market increasingly competitive.This is reflected in a low single digit reduction in like for like DIY salescompared to a strong trading period last year. UK merchanting operations experienced low single digit like for like salesgrowth overall for the first six months in a softening market. Within theGroup's UK merchanting operations like for like plumbers merchanting sales weredown on the same period last year affected by weaker retail spending. Like for like turnover in the EuroMix dry mortar business was similar to thatrecorded in the same period last year in more competitive trading conditions asa result of an increase in the number of competitor locations across the UK. Five bolt on acquisitions trading from five locations have been completed sincethe start of the year. In addition the Group has opened eleven greenfieldbranches, comprising six UK plumbers merchanting branches, three UK buildersmerchanting branches and two new Irish DIY stores. The Group's financial position remains strong with increased levels of cash flowin the first half. During this period a $325 million private placement of 7 and10 year Senior Notes was completed on favourable terms with US investors. The Group remains confident of continued growth in profits and earnings pershare in 2005 and is well placed to participate in further consolidation of theIrish and UK merchanting markets. Ends 6 July 2005 Michael Chadwick Joe MurrayExecutive Chairman Murray ConsultantsGrafton Group plc Telephone: (++353) (01)498 0300Telephone: (++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 Notes to Editors: Grafton Group plc is an independent, profit growth oriented company operating inthe UK and Ireland whose main activities are builders and plumbers merchanting,DIY retailing and mortar manufacturing. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Grafton Group