Grafton Group has reported increased revenue for the first ten months of this year, thanks to mergers and acquisitions.
The company’s group revenue reached £2.13 billion, up from £1.91 billion, representing an 11.5% increase. It said that ten months of trading from HVAC specialist distributor Salvador Escoda and five months of trading from HSS Hire Ireland contributed to the increase.
Group average daily like-for-like revenue for the four months to the end of October was up 1.6% year on year, although momentum eased over the past two months, reflecting a softening in activity levels compared with earlier in the year.
In the UK distribution business, average daily like-for-like revenue fell by 0.5% over the same four-month period. Trading weakened in October, likely influenced by consumer and homeowner caution in the run-up to the November Budget.
In Ireland, both Chadwicks and Woodie’s experienced slightly softer activity during the seasonally important trading months of September and October. While the outlook for construction remains broadly positive, supported by strong government investment and the revised National Development Plan, the published Construction PMI has shown some weakening in recent months.
This trend aligns with a dip in housing commencements, following fewer planning permissions in the first half of the year. Even so, Ireland’s acute housing shortage continues to support the medium-term outlook for construction, with the Government expected to publish its long-awaited National Housing Plan shortly.
“The strength of Grafton’s business model is evident in our performance year to date. Though momentum has slowed somewhat in the period, the outlook for Grafton remains positive, supported by structural tailwinds, strong market positions in all geographies, significant recovery potential in the UK and Finland, a robust balance sheet and an encouraging acquisitions pipeline,” said Eric Born, Chief Executive Officer of Grafton Group.
Looking ahead, the group is expected to deliver full-year adjusted operating profit in line with expectations of circa £182.2 million.
