Grafton, the building and DIY materials group behind the Woodies and Chadwicks brand, said favourable weather and a recovery in activity after Storm Éowyn contributed to a “very strong” start to its trading year in Ireland against a backdrop of “subdued” demand in the UK.
In a trading update issued ahead of its annual general meeting on Thursday, Grafton said its overall performance had been in line with expectations in the first four months of the year.
Group revenues over the period between January and the end of April were £773.1 million, up 7.8 per cent from last year. The figures were boosted by Grafton’s acquisition of Spanish air conditioning and heating products distributor Salvador Escoda late last year.
Daily like-for-like revenue for the period was 2.7 per cent higher than in the same period last year, the group said.
“In Ireland, Chadwicks delivered like-for-like revenue growth of 3.5 per cent in the period as trading activity recovered strongly from the impact of Storm Éowyn,” Grafton said. Overall, it said the outlook for construction in the Republic was “remains positive” with “strong support and policy continuity” from the Government.
In its Woodies Irish retail division, Grafton said the Republic had a “very strong start to the year”, buttressed by “strong consumer spending”, particularly on plants and garden-related products.
Daily like-for-like revenues across the group’s distribution division in the UK, however, continued to decline, Grafton said. Demand remains “subdued”, particularly in the Greater London area, it said, but said the outlook remains positive with the Labour Party government pledging to increase housing activity.
Overall, Grafton said its performance was in line with expectations during what is typically a quieter part of its financial year. With the “more material” summer trading period ahead, “we remain on track to meet full-year expectations”, the group said, “notwithstanding the potential impact of US tariffs”.
Eric Born, chief executive of Grafton Group, said he is pleased with the performance after a “relatively subdued” start to the year.
“We are focused on what we can influence within our businesses rather than being unduly distracted by the uncertainties around us,” he said.
