Woodie’s DIY owner defies consumer slowdown

Woodie’s DIY owner defies consumer slowdown
Chief executive Gavin Slark

By Geoff Percival

Shares in builders merchanting and DIY group Grafton surged nearly 8% on the back of latest revenue figures showing the group is defying the drop in consumer confidence in its core market of the UK.

The Dublin-based owner of the Woodie’s DIY retail chain and the Chadwicks and Heiton-Buckley merchanting businesses reported a 10.2% year-on-year jump in revenues for the four months to the end of October, with like-for-like sales for the same period up by 5.5%.

Group revenue for the first 10 months of the year rose 9.3% to £2.5bn (€2.9bn).

Grafton’s UK merchanting division which contributes more than 70% to annual revenues increased sales by 8.1% in the first 10 months, despite October seeing a marked slowdown in consumer confidence in the UK.

However, Grafton also saw growth of over 10% in the first 10 months of the year in its Irish merchanting division and its Dutch division of 21%. Total revenue growth in retail, effectively the Woodie’s DIY business, amounted to 11% in the 10 months to the end of October.

“Following a good first- half performance, overall trading in the last four months has underpinned our confidence that we will deliver our expectations for the full year,” said chief executive Gavin Slark.

“The group has benefited from its exposure to multiple geographic markets,” he said.

Davy has forecast a 14% rise in Grafton’s operating profits this year to £186m.

More on this topic

Consumer spending in June fell to lowest level in five yearsConsumer spending in June fell to lowest level in five years

Ireland's per capita debt level stands at €44,365Ireland's per capita debt level stands at €44,365

Irish economy grew by 8.2% last year, figures showIrish economy grew by 8.2% last year, figures show

Sun still shining on Irish economy, but Brexit storm clouds are gathering on horizonSun still shining on Irish economy, but Brexit storm clouds are gathering on horizon

More in this Section

Volvo recalling 6,000 cars in IrelandVolvo recalling 6,000 cars in Ireland

Ted Baker shares rise amid buyout rumoursTed Baker shares rise amid buyout rumours

Premier Inn owner Whitbread returns €2.8bn to shareholdersPremier Inn owner Whitbread returns €2.8bn to shareholders

Drinks and hospitality body warns of 'recession-type' decline if Boris becomes PMDrinks and hospitality body warns of 'recession-type' decline if Boris becomes PM


Lifestyle

Pollinators are busy feasting on a tempting selection of flowering plants, says Peter Dowdall.The hedgerows are alive with the sound of insects

Carol O’Callaghan previews Cork Craft Month, when exhibitions, workshops and retail opportunitiesAn insider's guide to Cork Craft Month's exciting exhibitions, shopping opportunities and workshops

With a plethora of culture and content releasing at an incessant rate, finding someone to have that cliched watercooler moment with is getting harder and harder. However, there’s a whole host of pop culture podcasts that do the heavy lifting/watching with you.Trawling through pop culture... so you don’t have to

An exhibition in Skibbereen pays tribute to late photographer Michael Minihane, writes Richard FitzpatrickMichael Minihane has been putting West Cork in the frame for decades

More From The Irish Examiner