12th Jul 2007 07:00
Grafton Group PLC12 July 2007 Grafton Group plc Trading Update Grafton Group plc, the builders merchants and DIY Group with operations in theUK and Ireland, issues this Trading Update for the half year ended 30 June 2007. Group turnover for the half year was €1.6 billion, up 12.5 per cent on the sameperiod in 2006. The Group expects strong double digit earnings growth for theperiod driven by improving returns in the UK and by an ongoing good performancein the context of slower growth in the Irish merchanting market. The improved conditions in the UK merchanting market in the second half of 2006continued into 2007 and like for like sales increased by a mid single digitpercentage in the half year. A return to growth in this market has beenreflected favourably in Group earnings. Although there has been a moderation in the level of new residentialconstruction activity in Ireland, the Group's Irish merchanting businessachieved low single digit like for like sales growth in the first six months ofthe year. The Irish DIY business performed strongly, as expected, during the half year.Good like for like sales growth was achieved, supported by high levels ofconsumer spending. The three stores that were opened during 2006 traded ahead ofexpectations. The Group continued to develop its business base in the half year completing sixacquisitions at a cost of c. €42 million and ten branch openings. Fiveacquisitions with 21 branches were completed in the UK and one branch acquiredin Ireland. The acquired businesses have annual sales of c. €60 million. Grafton Group has entered the second half of the year in a strong position todeal with a future trading environment that is expected to be more challenging. Ends. 12th July 2007 For further information please contact: Grafton Group plc + 353 1 216 0600 Murray Consultants +353 1 498 0300 Michael Chadwick, Executive Chairman Joe Murray Colm O Nuallain, Finance Director Citigate Dewe Rogerson +44 207 282 2945 Ginny Pulbrook 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