13th Jan 2006 07:00
Grafton Group PLC13 January 2006 Grafton Group Plc Trading Update January 2006 Group Turnover for 2005 exceeded €2.6 billion and Group earnings are expected tobe in line with market expectations of a basic EPS of circa 66 cent. The Group benefited from a continuation of a favourable operating environment inIreland that compensated for weaker trading conditions in the UK during thesecond half of the year. Heiton Group plc, acquired in January 2005, performedahead of Group expectations and contributed significantly to Groupprofitability. The Group remains positive in its outlook for the UK market but expectsdifficult conditions to continue in that market during the first half of 2006.Ashortfall in like for like sales is anticipated compared to a strong performancein the first half of 2005. Following a recent marked improvement in UK macroeconomic indicators, including a strong increase in mortgage lending, a higherlevel of housing transactions, increased immigration and a reduction in UKinterest rates, the prospects for the second half are more favourable. InIreland, the Group expects to benefit from a continuation of buoyant tradingconditions and good like for like merchanting sales growth throughout 2006. During 2005 the Group continued to grow organically with the development of 19greenfield outlets, 4 new Irish DIY stores, a new dry mortar plant in Bristoland 14 merchanting outlets across the UK. In the year to 31 December 2005 Grafton completed 17 acquisitions, 14 in the UKand 3 in Ireland for a total consideration of circa €470 million (including €359 million for Heiton Group plc), adding 89 branches and increasing the branch network to over 480 trading locations. Further organic growth is planned for 2006 with the development of additionalgreenfield locations, the completion of the 9th dry mortar plant in the UK andfurther DIY store openings in Ireland. The Group also expects to benefit fromits healthy pipeline of potential acquisitions. Ends 13 January 2006 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 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Grafton Group