International building materials distributor and DIY retailer Grafton Group has issued its trading update for the period 1 January to 27 April 2025.
Group revenue in the period was £773.1 million, up 7.8% from the previous year and 9% in constant currency respectively. The company said group revenue was benefited from the acquisition of Salvador Escoda, a distributor of heating, ventilation, air conditioning, water and renewable products in Spain.
UK Distribution
Average daily like-for-like revenue in the UK declined by 0.3% as business improved, with modest product price inflation of 1-2%, following a slow start to the year. Last year, from 1 January to 21 April, the company’s average daily like-for-like revenue in the UK dropped by 8%.
Repair, Maintenance and Improvement demand (RMI) will remain subdued, especially in the Greater London area. However the medium-term fundamentals will remain positive supported by the UK Government’s plans to significantly increase new housing activity.
Ireland Distribution
In Ireland, Chadwicks delivered like-for-like revenue growth of 3.5% in the period as trading activity recovered strongly from the impact of Storm Éowyn in January 2025.
The outlook for growth in construction will remain positive, with strong support and policy continuity from the new government to increase housing completion and infrastructure investment.
Ireland’s construction PMI rose to 53.9 in March 2025, representing its highest level for three years. Looking ahead, there will be potential risks arising from the imposition of US tariffs on the broader Irish economy and future investment decisions, according to the company.
Manufacturing
The average daily like-for-like revenue was 6.5% higher than it was in the same period last year.
CPI EuroMix reported strong sales growth in the period supported by increased volumes from its housebuilding customers on existing sites. As the UK government plans to increase housing supply, the broader recovery in this sector will be dependent upon a higher number of active housing developments.
StairBox had good sales growth in the period although demand in the RMI market in the UK will remain subdued.
Outlook
Looking ahead, the medium-term fundamentals will remain positive for the company, with housing shortages across all its geographies and an expected recovery in RMI demand after several consecutive years of low levels of investment by households. However, the potential impact of US tariffs and any associated economic uncertainty will be the factors that may impact the company’s business.
“After a relatively subdued start to the year, and with the more material trading period lying ahead, we were pleased that our performance in the period was in line with our expectations, and we remain on track for the full year. We are focused on what we can influence within our businesses rather than being unduly distracted by the uncertainties around us,” said Eric Born, Chief Executive Officer of Grafton Group.
