Friday 19 July 2019

Woodies DIY owner impacted by 'weaker' demand in the UK

 Gavin Slark, CEO of Grafton
 Gavin Slark, CEO of Grafton
Ellie Donnelly

Ellie Donnelly

Grafton Group saw its revenue growth fall in the UK during May and June, as the group was impacted by weaker demand in the DIY and house building markets.

On the back of the "softer than anticipated" market conditions, like-for-like revenue growth fell by 0.5pc in its UK merchanting business over the two months, according to a trading update from the company.

Across the group, like-for-like revenue growth during the two month period declined by 8.4pc in its retailing division, and by 5.1pc in the manufacturing segment of the business.

According to a statement from Grafton, trading in May and June was measured against "very strong" prior year comparatives.

Overall and group revenue increased by 2.6pc (in constant currency) to £1.48bn (€1.65bn) in the six months to 30 June. 

Like-for-like group revenue increased by 3.9pc at the company.

In Ireland, where Grafton also owns Chadwicks and Heiton Buckley, the company reported like-for-like revenue growth of 8.3pc across its merchanting business.

Gavin Slark, CEO of Grafton, said: "Following a strong start to the year Grafton saw some easing of trends in recent months.”

In Ireland and the Netherlands, Mr Slark said he expects a “continuation of the positive trading conditions.” 

“Activity over the summer in the UK will be an important determinant of momentum entering the significant trading months of September through to November.  Our current expectations for full year profitability, including the benefit of the recently completed Polvo acquisition, remain broadly unchanged."

The group will announce its full interim results next month.

Online Editors

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