Grafton Group PLC
06 July 2005
Grafton Group plc
Trading Statement for the Six Months ended June 30th, 2005
Trading in the first six months of the year is in line with market expectations.
Heiton Group plc has performed ahead of last year's levels since being acquired
in January. Substantial progress is being made on the realisation of integration
benefits.
The Irish merchanting businesses are achieving high single digit like for like
sales growth in a favourable trading environment. The importance of Irish
merchanting as a contributor to the Group has increased significantly in this
period following the successful Heiton acquisition and the continued strength of
the Irish economy.
DIY sales are growing on the back of new store openings and relocations to
larger outlets. As previously highlighted, the opening of new stores by all of
the principal DIY traders is making the Irish market increasingly competitive.
This is reflected in a low single digit reduction in like for like DIY sales
compared to a strong trading period last year.
UK merchanting operations experienced low single digit like for like sales
growth overall for the first six months in a softening market. Within the
Group's UK merchanting operations like for like plumbers merchanting sales were
down on the same period last year affected by weaker retail spending.
Like for like turnover in the EuroMix dry mortar business was similar to that
recorded in the same period last year in more competitive trading conditions as
a result of an increase in the number of competitor locations across the UK.
Five bolt on acquisitions trading from five locations have been completed since
the start of the year. In addition the Group has opened eleven greenfield
branches, comprising six UK plumbers merchanting branches, three UK builders
merchanting branches and two new Irish DIY stores.
The Group's financial position remains strong with increased levels of cash flow
in the first half. During this period a $325 million private placement of 7 and
10 year Senior Notes was completed on favourable terms with US investors.
The Group remains confident of continued growth in profits and earnings per
share in 2005 and is well placed to participate in further consolidation of the
Irish and UK merchanting markets.
Ends 6 July 2005
Michael Chadwick Joe Murray
Executive Chairman Murray Consultants
Grafton Group plc Telephone: (++353) (01)498 0300
Telephone: (++353) (01) 216 0600
Colm o Nuallain Ginny Pulbrook
Finance Director Citigate Dewe Rogerson
Grafton Group plc Telephone: (++44) (0207)282 2945
Telephone: (++353) (01) 216 0600
A copy of this statement is also available on our website
www.graftonplc.com
Notes to Editors:
Grafton Group plc is an independent, profit growth oriented company operating in
the UK and Ireland whose main activities are builders and plumbers merchanting,
DIY retailing and mortar manufacturing.
This information is provided by RNS
The company news service from the London Stock Exchange
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