Trading Statement January 05

Grafton Group PLC
12 January 2005


                               Grafton Group plc
                                 Trading Update
                                  January 2005

Trading in both Ireland and the UK is in line with Group expectations. Like for
like sales growth continued in Ireland and the UK during the second half of
2004. Group Turnover for 2004 exceeded €1.87 billion and Group profits for 2004
are expected to be in line with market expectations.

Heiton Management have indicated that trading in Heiton Group plc has performed
strongly during its six month interim period up to October 2004 and their
financial results for this period are ahead of our expectations.

In the year ended 31 December 2004 Grafton completed 17 acquisitions in the UK
for a total consideration in excess of €69 million. In Ireland, as announced
last Friday, the Group has received approval from the Competition Authority to
complete the purchase of Heiton Group plc. Combined, the Irish and UK
acquisitions should add almost €700 million of turnover to the Group during 2005
and increase the branch network by over 80 trading locations.

During 2004 the Group continued to implement its strategy of growth through
organic developments. Greenfield development of 12 merchanting outlets, 3
Woodie's DIY stores and a dry mortar plant in Southampton added a further 16
branches to the Group bringing the total network to over 430 trading locations
in Ireland and the UK.

Further organic growth is planned for 2005 with the development of additional
greenfield merchanting locations and the completion of the 8th dry mortar plant
in the UK and new DIY store openings in Ireland. The Group also expects to
benefit from its healthy pipeline of potential acquisitions.


Ends                                                             12 January 2005


For reference:

Michael Chadwick                                Joe Murray / Grainne O'Brien
Executive Chairman                              Murray Consultants
Grafton Group plc                               Telephone:(++353) [phone]
Telephone: (++353) [phone]

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



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