Trading Update Statement

Grafton Group PLC
12 July 2007

                               Grafton Group plc

                                 Trading Update


Grafton Group plc, the builders merchants and DIY Group with operations in the
UK and Ireland, issues this Trading Update for the half year ended 30 June 2007.

Group turnover for the half year was €1.6 billion, up 12.5 per cent on the same
period in 2006. The Group expects strong double digit earnings growth for the
period driven by improving returns in the UK and by an ongoing good performance
in the context of slower growth in the Irish merchanting market.

The improved conditions in the UK merchanting market in the second half of 2006
continued into 2007 and like for like sales increased by a mid single digit
percentage in the half year. A return to growth in this market has been
reflected favourably in Group earnings.

Although there has been a moderation in the level of new residential
construction activity in Ireland, the Group's Irish merchanting business
achieved low single digit like for like sales growth in the first six months of
the year.

The Irish DIY business performed strongly, as expected, during the half year.
Good like for like sales growth was achieved, supported by high levels of
consumer spending. The three stores that were opened during 2006 traded ahead of
expectations.

The Group continued to develop its business base in the half year completing six
acquisitions at a cost of c. €42 million and ten branch openings. Five
acquisitions with 21 branches were completed in the UK and one branch acquired
in Ireland. The acquired businesses have annual sales of c. €60 million.

Grafton Group has entered the second half of the year in a strong position to
deal with a future trading environment that is expected to be more challenging.


Ends.

                                                                  12th July 2007

For further information please contact:

Grafton Group plc + 353 1 216 0600            Murray Consultants [phone]

Michael Chadwick, Executive Chairman          Joe Murray

Colm O Nuallain, Finance Director

                                         Citigate Dewe Rogerson [phone]

                                                                  Ginny Pulbrook



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



                      This information is provided by RNS
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