Essential reading for retailers and suppliers in the home improvement market

Grafton Group delivers exceptional revenue growth

Published: 11 January 2019 - Kiran Grewal
 

Grafton Group plc, the international builders merchanting and DIY Group, has issued its trading update for the year ended 31 December 2018 in advance of the announcement of its Final Results for 2018 on 28 February 2019.

Group revenue for 2018 was £2.95 billion, an increase of 8.7% from £2.72 billion in 2017. Revenue growth in constant currency was 8.4% and average daily like-for-like revenue increased by 4.3%. As expected, the rate of growth moderated in November and December following above trend growth in September and October.

With a good performance over the year, the Group anticipates reporting EBITA for 2018 slightly ahead of the top end of analyst expectations*.

UK daily like-for-like revenue growth for the three months to the end of December last year was an increase of 3.4% and the total revenue growth in that time at 7.7%. In Ireland average daily like-for-like revenue growth for the three months to the end of December 2018 was 9.8% and total revenue was 8.4%.

As part of our overall strategy to improve returns, the Group has said it has disposed of two small non-core UK businesses which contributed revenue of £40.0 million and EBITA of circa £1.4 million in 2018. Online Home Retail Limited completed a successful management buyout (MBO) of www.plumbworld.co.uk, from Grafton Group plc this month.

Chief executive officer of Grafton Group plc, Gavin Slark commented today: "We are pleased with the strong performance over the year, with contributions from both organic growth and the Leyland SDM acquisition. The Group continues to benefit from its exposure to multiple geographies and its diverse customer base. The Group’s cash generative businesses, strong balance sheet and low level of net debt support our development strategy for the year ahead."

*Grafton compiled analyst forecasts show consensus EBITA for 2018 of £185.1m with the top end of the range £188.5m.

Comments


(Your email address will not be published)
Already Registered?
Sign In
Not Yet Registered?
Register
Printable View E-mail Bookmark
*

What do you think?


As the Brexit saga continues, what do you want the Government to do?



Latest reader comments

re: Which? says B&Q website is bottom of the pile

Roy stone
b&q website has always been terrible 9 times out of 10 it takes an age to work or if it works at all I am a tradesmen and also hold a ...

re: New safety mark replacement could cost UK manufacturers millions

Robert Millien
All very true.Reminds me of all the horror stories about what would happen on 1st January 2000. What happened? Nothing!!!...

re: BCT calls in administrators

Kevin Keely
I worked at Bct in 2009/10 for several months. This time left a lasting impression on me. What an impressive company, staff, colleagues ...

re: Graham Bell to head up B&Q as part of Kingfisher reshuffle

John Garner
Dear Mr Bell. May Ifirst congrate yyou on your promotion yo CEO B&Q. I need your help. 2010 I purchased from B&Q a full kitchen for ...

re: New safety mark replacement could cost UK manufacturers millions

geej@onetel.com
Some misconceptions here. For some time many EU Countries refuse to accept UK Conformity Tests and insist manufacturers get retested in ...

Most read stories