Trading Statement

Grafton Group PLC
15 June 2004




                               Grafton Group plc

                               Trading Statement




The Group has continued to experience favourable trading conditions in the UK
and Ireland during the first half of the year and this has been reflected in
good sales growth, in addition to strong integration led growth in the UK. Group
profits in the half year are expected to be materially ahead of market
expectations.

In the UK, Group operations continue to benefit from the synergies associated
with the larger acquisitions completed during 2003 and UK operating margins are
improving in line with market expectations. Recent acquisitions are also
performing well. The new EuroMix Dry Mortar plant in Southampton is scheduled to
commence production later this month.

Sales growth in Ireland has benefited from the recent spell of fine weather and
both Irish Merchanting and Woodie's DIY turnover improved. Woodie's DIY new
flagship store on the Naas Road opened successfully over the June Bank Holiday
weekend, bringing the Woodie's store network to 18.

Turnover in the first six months of 2004 is expected to exceed last year's
levels by over 20 per cent and this is also reflected in significantly increased
levels of operating profit. Group operating profit before goodwill amortisation
for the half year is anticipated to increase by over 25 per cent on the same
period in 2003.



Ends                                                      15 June 2004

31 August 2001For 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




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