14th Jul 2006 07:00
Grafton Group PLC14 July 2006 Grafton Group plc Trading Update for the Six Months Ended 30 June 2006 Group turnover for the first six months of 2006 exceeded €1.4 billion and Groupearnings continue to be in line with market expectations. As expected, the favourable trading environment in Ireland continued tocompensate for the softer trading conditions experienced by the Group in the UK.Increased like for like sales in the Irish merchanting business were driven bygood growth in both Chadwicks and Heiton Buckley. Davies and Garvey's, the twoIrish merchanting businesses acquired in December 2005, showed positive growthin their first full six months trading under Group ownership. The Groupexperienced a slower start to the retail season in its Irish DIY businesses butrecent trading has been stronger. New DIY stores opened in Castlebar and Navanduring the period are performing in line with Group expectations. Group turnover in the UK was over €800 million for the six months. However, aspreviously indicated, like for like sales were modestly down on thecomparatively strong first six months of 2005. UK macro economic indicators havebeen positive for the RMI sector for some time and UK merchanting sales wererelatively stronger in the second quarter compared to the first quarter. The UKmortar market continues to grow although it remains very competitive. The Group continued to grow organically in the first half, opening ten outlets -two Irish DIY stores and eight merchanting branches in the UK. Seven acquisitions were completed in the UK during the six month period for atotal consideration of €35 million. These added 16 branches, expanding theGroup's branch network to over 500 trading locations. The businesses acquiredincluded Fleming Holdings Limited, the leading independent Scottish Builders andTimber Merchant with eight branches. The Group has continued its property disposal programme and expects to reportprofits on disposals, including the Atlantic Stillorgan property, in excess of€25 million for the period. The Irish merchanting and DIY markets remain strong. Recent trends in UKmerchanting suggest an improvement in trading during the second half. The Groupremains confident of continued growth in profits and earnings per share in 2006and is well placed to participate in further consolidation of the Irish and UKmerchanting markets and to take advantage of organic growth opportunities. 14th July 2006 Enquiries: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 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Grafton Group