UK DIY News
Grafton Group Reports LFL Revenue Growth in Half-Year Trading
Grafton Group plc, the merchanting and DIY Group with operations in the UK, Ireland, the Netherlands and Belgium, issues this trading update for the half-year to 30 June 2019 ahead of Interim Results which will be announced on Friday 30 August 2019.
Group Revenue
Group revenue increased by 2.4 per cent to £1.48 billion (Six months to 30 June 2018: £1.45 billion) and by 2.6 per cent in constant currency. Like-for-like Group revenue increased by 3.9 per cent.
Group trading in May and June was measured against very strong prior-year comparatives1. Market conditions in the Group's UK markets were softer than anticipated during these months reflecting weaker demand in the residential repair, maintenance and improvement and house building markets.
The table below shows the changes in average daily like-for-like revenue and in total revenue compared to the same periods in 2018.
Segment | Average Daily Like-for-Like Revenue Growth in Constant Currency | Total Revenue Growth | |||
Constant Currency | Sterling | ||||
| Four Months to 30 April 2019 | Two Months to 30 June 2019 | Six Months to 30 June 2019 | Six Months to 30 June 2019 | Six Months to 30 June 2019 |
Merchanting |
|
|
|
|
|
- UK | 4.8% | (0.5%) | 2.8% | 1.4% | 1.4% |
- Ireland | 10.7% | 4.3% | 8.3% | 7.4% | 6.7% |
- Netherlands | 3.5% | 2.5% | 3.1% | 6.2% | 5.4% |
- Belgium | 14.8% | 5.7% | 10.9% | 1.0% | 0.3% |
Retailing | 12.2% | (8.4%) | 2.9% | 2.9% | 2.2% |
Manufacturing | 7.3% | (5.1%) | 2.9% | 2.1% | 2.1% |
Group | 6.4% | (0.3%) | 3.9% | 2.6% | 2.4% |
Gavin Slark, Chief Executive Officer of Grafton Group plc commented today:
"Following a strong start to the year Grafton saw some easing of trends in recent months. We expect a continuation of the positive trading conditions in our markets in Ireland and the Netherlands. 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."
1. Note
Average Daily Like-for-Like Revenue Growth in Constant Currency
Segment | Two Months to 30 June 2018 |
Merchanting - UK - Ireland - Netherlands - Belgium |
5.8% 9.6% 7.7% (2.9%) |
Retailing | 25.9% |
Manufacturing | 31.5% |
Group | 8.2% |
Source : Insight DIY Team and Grafton Group
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