Trading Statement

Grafton Group PLC
08 January 2004

                               Grafton Group plc

                               Development Update

In the year ended December 31st, 2003 Grafton Group plc completed 10
acquisitions for a total consideration in excess of €200 million. Each of the
larger acquired businesses, Jacksons, Plumbline and Telfords, continues to trade
in line with or ahead of initial expectations. In a year of strong growth, Group
earnings are expected to be in line with market forecasts.

Throughout the year, the Group continued to implement its successful strategy of
growth through acquisition and organic development. The acquisitions added 50
branches to the Group's network. Greenfield developments of 12 merchanting
outlets, 2 Woodie's DIY stores and a Dry Mortar plant added a further 15
locations, bringing the Group's network to a total of over 330 locations in the
UK and Ireland. Six of these acquisitions were made in the second half of the
year.

The Group has completed the sale and leaseback of the Naas Road property
acquired in 2002 on which a new flagship Woodie's DIY store is scheduled for
completion during the third quarter of 2004. It is anticipated that a book
profit in excess of €6 million will be realised and accounted for in 2004 on
successful completion of the development.

Further organic growth is planned for 2004 with the development of greenfield
merchanting locations, the completion of the 7th Dry Mortar plant in the UK and
new Woodie's DIY store openings in Ireland. The Group also expects to benefit
from its healthy pipeline of potential acquisitions.



Ends                                                              8 January 2004

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



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