Grafton Group PLC
LSE:GFTU
Grafton Group PLC
Grafton Group Plc engages in the distribution of construction products. Its segments include Distribution, Retailing and Manufacturing. The Distribution segment is engaged in the distribution of building and plumbing materials to professional trade people engaged in residential repair, maintenance, and improvement projects and in residential and other new build construction across the United Kingdom, Ireland, the Netherlands, Spain and Finland. The Retailing segment operates DIY and a home improvement business and supplies retail customers with a range of products for DIY and for the home and garden. The Manufacturing segment comprises the manufacturer of dry mortar in Great Britain and bespoke timber staircases in the United Kingdom. The company operates through over 422 branches. Its portfolio of brands includes Chadwicks, Woodie's, Selco Builders Warehouse, Leyland SDM, MacBlair, TG Lynes, CPI EuroMix, StairBox, Isero, Polvo, Salvador Escoda and IKH.
Grafton Group Plc engages in the distribution of construction products. Its segments include Distribution, Retailing and Manufacturing. The Distribution segment is engaged in the distribution of building and plumbing materials to professional trade people engaged in residential repair, maintenance, and improvement projects and in residential and other new build construction across the United Kingdom, Ireland, the Netherlands, Spain and Finland. The Retailing segment operates DIY and a home improvement business and supplies retail customers with a range of products for DIY and for the home and garden. The Manufacturing segment comprises the manufacturer of dry mortar in Great Britain and bespoke timber staircases in the United Kingdom. The company operates through over 422 branches. Its portfolio of brands includes Chadwicks, Woodie's, Selco Builders Warehouse, Leyland SDM, MacBlair, TG Lynes, CPI EuroMix, StairBox, Isero, Polvo, Salvador Escoda and IKH.
Revenue Growth: Grafton Group returned to organic revenue growth in H1, with daily like-for-like revenue up 2.4% and total revenue rising 10.1% to GBP 1.25 billion.
Profit Improvement: Adjusted operating profit grew by 9.5% to GBP 91 million, and adjusted EPS increased 6.5% to 35.5p, marking the first profit growth in several years.
Cash Generation & Returns: Free cash flow was strong at GBP 78 million with an 86% conversion rate, supporting GBP 81 million of capital returns and a new GBP 25 million buyback program.
Margin Management: Group gross margin improved by 60 bps, offsetting cost inflation, while the overall operating margin stayed at 7.3%.
Business Segment Highlights: Ireland and Spain performed strongly; UK distribution returned to profit growth; Finland remained challenging due to macro and supply issues.
Outlook: H2 trading conditions expected to mirror H1, with continued growth in Ireland and Spain and subdued markets in the UK, Netherlands, and Finland.
Strategic Focus: Ongoing investment in operational efficiency, targeted M&A, and organic growth, especially in Ireland and Iberia, while maintaining a robust balance sheet.
