Shares in Woodie's DIY owner surge after 'exceptional' revenue growth

Grafton Group chief executive Gavin Slark.

Woodie’s DIY has been one of the main drivers of revenue growth for Irish building supplies group Grafton since the start of the year.

Grafton has reported a 33% year-on-year rise in group revenue – to £846.8m (€974m) – for the first three and a half months of 2021, with the news sending its shares surging by nearly 12%.

While the bulk of Grafton’s revenues come from its UK builders merchanting business, the group said Woodie’s in Ireland and the Selco building supplies chain in the UK made the strongest sales gains in the first quarter.

Grafton said revenue growth in March and April was ahead of expectations.

'Exceptional growth'

The Irish distribution business – Chadwicks – saw lower levels of activity due to the construction sector being largely closed, but a surge in home improvement works saw “exceptional growth” at Woodie's, with sales up by over 111%.

Grafton said it now expected adjusted group operating profits, for this year, to be 15%-20% ahead of consensus forecasts of £206m.

“Grafton is well-placed for continued progress in the current year supported by our market-leading businesses and strong financial position,” said chief executive Gavin Slark.

CRH

Meanwhile, Irish building materials giant CRH is expecting first-half earnings to be “well ahead” of the Covid decimated corresponding period last year and “further normalisation” in trading during the second half of the year.

CRH said it saw like-for-like sales growth of 3% in the first quarter of the year.

“We had a positive start to the year in a seasonally quiet period for our business with good underlying demand and pricing progress across our key markets,” said CEO Albert Manifold.

CRH said it had spent $200m (€166m) on acquisitions since the start of the year and has a “strong pipeline” of opportunities.