Woodie's owner Grafton expects higher profits on back of strong first half

Irish-headquartered builders’ suppliers and DIY retailer said revenues for the first six months topped £1.55bn; 46.5% up on a year-on-year basis

Grafton Group chief executive Gavin Slark. 

Woodie’s DIY owner Grafton Group has raised its profit expectations for this year on the back of a stronger-than-anticipated first-half performance and recent acquisitions bolstering its business.

The Irish-headquartered builders’ suppliers and DIY retailer said revenues for the first six months of this year topped £1.55bn (€1.8bn); 46.5% up on a year-on-year basis. 

While that increase was heavily down to temporary closures last year due to the Covid restrictions, Grafton said its first-half revenues were still 18% ahead of pre-pandemic levels seen in the first six months of 2019.

“Grafton traded ahead of expectations in the first half and, despite some ongoing uncertainty caused by the pandemic and sector-wide supply chain pressures, the group has increased current year profit guidance for continuing operations supported by its market-leading businesses and strong financial position,” said Grafton chief executive Gavin Slark.

Grafton said the strong revenues that it saw in March and April — particularly in Woodie’s and its Selco building supplies business in the UK — continued through May and June, despite some supply chain pressures and a shortage of certain raw materials.

Its retailing business, alone, which largely constitutes Woodie’s DIY, grew revenues by nearly 60% on first-half 2019 levels.

Grafton said it now expects adjusted group operating profit — for 2021 — of around £240m; close to analyst consensus forecasts of £243m. 

Previous expectations were for full-year profits of around £206m.

In the last couple of weeks, Grafton has reached agreement to sell the non-core elements of its traditional merchanting business in the UK and has completed the near €200m takeover of Finland-based group IKH, which expands Grafton's presence beyond Ireland, the UK and the Netherlands.