Irish building boom boosts Grafton Group revenue

Building materials company Grafton Group said revenue rose 7.2% so far this year on higher prices and growth at its Chadwicks chain in Ireland.

Hadwicks saw income rise by 37.5% (on a like-for-like average daily basis) as Irish homeowners spent more on repairs, maintenance and improvements to their homes.

There has also been an “acceleration” in the construction of private homes, non-residential structures and new public sector construction projects in Ireland, Grafton said in a business update ahead of its annual general meeting in Dublin today. today.

Chadwicks’ performance was “exceptionally strong, even taking into account building material price inflation and weak trade during the same period last year,” the statement said.

There has also been “a further normalization of income” in its DIY, home and garden business Woodie’s in Ireland, following exceptional growth in 2020.

Woodie’s remained open throughout the pandemic as it was considered an essential retailer.

Group revenue growth increased by 7.2% on an average daily like-for-like basis, reaching 17.5% at constant currencies, when acquisitions were included.

Total group revenue increased by 15% to £645.3 million for the period ending April 17, compared to the same period in 2021 (£561.1 million), excluding the sale of the Grafton’s UK trading business, which was sold in December.

Grafton has sold two properties in the UK so far this year, generating £24million in cash and £18.2million in profit, well above its previous forecast.

The positive performance enabled Grafton to announce a new £100 million share buyback program, subject to shareholder approval.

Grafton Group chief executive Gavin Slark said there were “generally good underlying demand conditions” in the residential repair and maintenance and new build markets.

“While there is some uncertainty about the impact of the disposable income squeeze on demand, we remain nimble and responsive to any business structure that may emerge over the remainder of the year,” he said. -he declares.

“The Group’s portfolio of successful businesses provides us with a resilient platform to outperform our markets and, with a strong balance sheet and continued investment opportunities, we are confident of continued progress in implementing our medium term strategy.

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