Trading Statement

Grafton Group PLC
02 July 2003




                               Grafton Group plc

                               Development Update



Grafton Group plc is pleased to announce that the Jackson Building Centres'
acquisition completed by the Group on 3 March 2003 is achieving good like for
like sales growth. Jackson's trading performance and profitability are ahead of
initial expectations.

In addition, the Group has completed the acquisition of three single branch
merchanting businesses and opened seven greenfield merchanting branches to date
this year in the U.K.

EuroMix, the Group's silo mortar division, commenced production and sales from
its sixth plant in Harlow, Essex.

Woodies DIY is actively progressing the opening of five new stores in Ireland
with two likely to open before Christmas 2003.

Group profits in the first half of 2003 are expected to be slightly ahead of
market forecasts.


Ends                                         2 July 2003

For reference:                             

Michael Chadwick                            Joe Murray
Executive Chairman                          Murray Consultants
Grafton Group plc                           Telephone: (++353) [phone]
Telephone: (++353) [phone]

Colm o Nuallain                             Ginny Pulbrook
Finance Director                            Citigate Dewe Rogerson
Grafton Group plc                           Telephone: (++44) [phone]
Telephone: (++353) [phone]



      This statement is also available on our web site www.graftonplc.com




                      This information is provided by RNS
            The company news service from the London Stock Exchange