Interim Management Statement

Grafton Group PLC
08 May 2008



                               Grafton Group plc

                          Interim Management Statement



Grafton Group plc, the builders merchants and DIY Group with operations in the
UK and Ireland, issues the following Interim Management Statement, for the four
months ended 30 April 2008, in advance of the Company's Annual General Meeting
to be held at 10.30am today in the IMI Conference Centre, Sandyford Road, Dublin
16.

In the UK, the residential repair, maintenance and improvement market has
demonstrated resilience despite lower investment and spending on housing due to
tightening in the availability of finance secured on property.   The Group's UK
Merchanting business experienced positive trading conditions in the first
quarter with low single digit growth in like for like sales.  Market conditions
weakened in April compared to strong growth in April 2007 and like for like UK
sales fell.  Overall UK sales increased by ten per cent in sterling in the four
months.  Ongoing development of the UK Merchanting business continued with the
completion of five acquisitions trading from eleven branches with an annual
turnover of approximately €40 million and the opening of eleven branches.

In Ireland the reduction in new residential construction which started in the
second half of 2007 gathered pace as housing output adjusts to a more
sustainable level.  The sharp fall in housing starts and completions has, as
expected, led to a more difficult trading environment for the Irish Merchanting
business.  The Irish RMI market appears to be holding up well and
non-residential construction remains strong.

Growth in consumer spending in Ireland moderated from the high rates of recent
years despite generally favourable income and employment conditions.   Turnover
in the Irish Retailing business was lower due to the more subdued retail
environment and the absence of the very favourable weather that stimulated
exceptionally strong demand in March and April 2007.  The new store in
Carrick-on-Shannon which opened in March traded ahead of expectations.

Group turnover in the four months to 30 April declined by eight per cent to €944
million and reflects the adverse translation impact of a twelve per cent decline
in sterling against the euro.  Irish sales fell by sixteen per cent.  Group
profit before tax was, as expected, significantly down compared to the very
strong performance in the first four months of 2007.

Growth in the UK economy is expected to moderate and the RMI market is likely to
become more challenging as the year develops.  Contributions from acquisitions
and scale related sourcing and cost synergies should help limit the impact on
profit of market weakness.  In Ireland low growth in the economy is forecast due
largely to the downturn in the residential construction market and slowdown in
the international economy. A programme to achieve scale related synergies and
bring costs more into line with lower volumes without compromising the market
positions and medium term prospects of the Group's businesses is ongoing.   The
Group's strong financial position and cash flow leave it well placed to cope
with these more challenging markets.



8 May 2008


For further information please contact:

Grafton Group plc + 353 1 216 0600           Murray Consultants + 353 1 498 0300
Michael Chadwick, Executive Chairman                                  Joe Murray
Colm O Nuallain, Finance Director
                                         Citigate Dewe Rogerson + 44 207282 2945
                                                                  Ginny Pulbrook





  A copy of this Statement is also available on our website www.graftonplc.com


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