Trading Statement

Grafton Group PLC
20 December 2006

                               Grafton Group plc



              Trading update for the 11 months to 30 November 2006




The trading environment continued to be favourable in Ireland during the period
and like for like sales continued to grow in high single digits.  In the UK, as
expected, the Group experienced an improving trend in like for like sales
growth, which overall was in low single digits, and resulted in an improved UK
operating margin during the period.



Group earnings for 2006 are expected to be in line with market expectations.



To date this year 16 acquisitions have been completed in the UK (nine since the
end of June 2006) for a total consideration of circa €80 million.  These
acquisitions have added 27 branches to the Group's network in the UK and had an
annualised turnover in excess of €120 million.



The organic expansion of the Group continued with the successful opening of six
new builders merchants, six new plumbers merchants and a ninth dry mortar plant
in the UK.  In Ireland, the Group opened three new Woodie's DIY superstores, one
builders merchant and a new In-House at the Panelling Centre location.  The
acquired and organically opened branches bring the number of Group trading
locations to over 520.



The Group continued its property disposal programme during the second half of
the year and now expects to report profits on disposals, including the
previously reported Atlantic Stillorgan property, in excess of €33 million for
the year.



Further organic growth is planned for 2007 with the development of brownfield
locations in the UK and new DIY store openings in Ireland. In addition, the
Group continues to evaluate a healthy pipeline of potential acquisitions.



Ends                                                          20th December 2006

For further information please contact:


Grafton Group plc + 353 1 216 0600           Murray Consultants + 353 1 498 0300

Michael Chadwick, Executive Chairman                                  Joe Murray

Colm o Nuallain, Finance Director       Citigate Dewe Rogerson + 44 207 282 2945

                                                                  Ginny Pulbrook

A copy of this statement is also available on our website www.graftonplc.com.






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