Grafton Group PLC (LSE:GFTU) saw its shares fall 2.5% on Thursday after the building materials distributor reported slower trading momentum in recent months, even as it reiterated that full-year profit guidance remains intact.
The company posted group revenue of £2.13 billion for the ten months to October 31, an 11.5% increase from £1.91 billion a year earlier. However, like-for-like daily revenue growth eased to 1.6% in the four months to October, compared with 2.4% in the first half, with activity softening further in September and October.
Despite this slowdown, Grafton said it is still on course to deliver full-year adjusted operating profit in line with analyst expectations of around £182.2 million. Recent acquisitions—including HVAC distributor Salvador Escoda and HSS Hire Ireland—also contributed to group performance.
Chief Executive Eric Born said: “The strength of Grafton’s business model is evident in our performance year to date. Overall revenue increased by over 11 per cent supported by continuing growth in building materials distribution in Ireland, Spain and the Netherlands and in retailing and manufacturing, helping to offset market weakness in the UK and Finland.”
Performance varied across the group’s regional markets. In Ireland, both Chadwicks and Woodie’s saw a softer period in September and October. In the UK, distribution revenue slipped 0.5% on a like-for-like basis, with activity deteriorating toward the end of the period.
Growth in the Netherlands slowed to 0.7%, while Finland continued to struggle, recording a 6.4% decline in like-for-like revenue. Spain remained the standout performer, delivering 5.7% like-for-like growth supported by a strong summer sales season for air-conditioning and ventilation products.
The group also completed its seventh share buyback programme on November 7, repurchasing 2.74 million ordinary shares at an average price of £9.14, returning £25 million to shareholders.
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