WASHINGTON: Builders merchant and DIY retailer Grafton Group has noted “uncertainty about the near term outlook and prospects for the economy” in a trading statement published today. Though it has operations here, in the Netherlands and Belgium, most of the Irish based company’s business is in the UK as is Grafton’s stock market listing.
In today’s trading update, Grafton said that its revenue for the six months to the end of June rose by 13.3% to £1.23 billion compared to £1.08 billion the same time the previous year. The company’s chief executive Gavin Slark said that the Brexit vote was “likely to weigh on demand in the new housing and repairs, maintenance and improvement markets” over the remainder of the year.
Grafton’s UK merchants business, Selco, opened its 42nd branch in Watford earlier this year and has pencilled in further openings between now and December. But it said that like-for-like revenue growth in its UK merchanting business, excluding the impact of new branch openings, has progressively weakened and fell in June. By contrast in Ireland, Grafton said it is benefiting from recovery in the economy and increasing repairs and home improvement spending by consumers.
It is also poised to gain from new house building activity, albeit from a low base, the company added. “The recovery in retail sales in Ireland which gathered pace during 2015 continued into the half year supported by momentum in consumer spending that was reflected in strong revenue growth in the Woodie’s DIY business,” the company stated.
