Grafton Group, which owns Woodie’s DIY and Chadwicks here, today reported higher revenues and profits for the six months to the end of June and said that trading conditions are expected to remain broadly consistent for the rest of the year.
Grafton, which also owns HSS Hire Ireland and Cygnum, said its revenues rose by 6.7% to £1.336 billion from £1.252 billion the same time last year.
Adjusted profit before tax for the six months grew by 7.1% to £93m from £86.8m, while adjusted operating profit increased by 8.2% to £98.5m from £91m on the back of strong underlying trading and acquisitions in Iberia and on the Island of Ireland.
The Grafton Board has declared an interim dividend of 11 pence per share, an increase of 2.3% on last year’s interim dividend of 10.75 pence.
The company said that strong performances on the Island of Ireland and in Iberia were driven by continued progress in executing organic and inorganic growth opportunities.
But it added that challenging market conditions in Great Britain continue to weigh on profitability with market conditions expected to remain broadly consistent with those experienced in the first half of the year.
Meanwhile, the timing of a sustained recovery in Northern Europe remains uncertain, although early signs of self-help led improvement are emerging in Finland, it added.
Eric Born, Grafton’s chief executive, said that despite a relatively slow start to the year, the company was pleased to have grown revenue, adjusted operating profit and margin in the first half of 2026 and to be in a position to reaffirm that we remain on track to deliver full year adjusted operating profit of £190m-200m, whilst recognising the important Autumn trading season is still to come.
“Our outlook for the second half is not dissimilar to H1, with Iberia and Island of Ireland strong, Northern Europe mixed and continuing weakness in Great Britain. Our medium-term outlook remains very positive supported by structural housing deficits in each of our markets and, in many cases, pent up demand for RMI,” the CEO said.
“Our first half result underpins the rationale of exposure to diverse markets and of investment through the cycle to support sustainable growth across geographies whose economies are operating at different speeds,” he added.
Breaking down its divisions, Grafton said that revenues in its Island of Ireland business rose by 10.3% to £579.4m on £525.5m, while adjusted operating profit before property profit was up 10% to £60.6m from £55.1m.
Grafton noted that average daily like-for-like revenue increased by 3.4% in the first half, mainly due to strong trading in Chadwicks as well as modest growth in Woodie’s compared to strong previous-year comparatives that benefited from favourable spring weather and elevated demand for garden and outdoor products.
It said it continued to advance its organic growth strategy, included the opening of a new Woodie’s store in Ennis in Co Clare, in June – its first new store in 17 years.
Chadwicks opened a new specialist hub in Ravenhill in Belfast in July, combining branches of its kitchen specialist business, the Panelling Centre, and concrete and brickwork accessories focused Sitetech, in one location.
Grafton noted that the Irish economy remains resilient, supported by strong employment and population growth, although the rate of economic growth is expected to moderate from the elevated levels recorded in 2025.
After poor weather in the first quarter, Grafton said that construction activity strengthened over the course of the first half, supported by government investment in housing and infrastructure.
Housing completions increased 10% to almost 17,000 units, driven mainly by scheme housing, while construction employment expanded as the sector scaled capacity to meet growing demand.
But it added that the Northern Ireland macroeconomic environment remains challenging with a decline in overall construction activity despite growth in the housing sector.
Grafton said that revenues at its Great Britain operations fell by 5.1% to £367.2m from £387.1m, while adjusted operating profit before property profit dropped by 29.3% to £17.5m from £24.8m.
It said its average daily like‑for‑like revenue in Great Britain decreased by 5.1% in the first half of 2026, reflecting continued weakness across construction markets.
The company noted that UK construction markets continued to face challenging conditions, with new build housing activity constrained by affordability pressures, higher financing costs and site viability concerns, while demand for discretionary home improvement projects remained subdued.
Revenues at its Northern Europe division rose by 3.6% to £244.2m from £235.6m while adjusted operating profit before property profit was up 3.4% to £16.3m from £15.8m.
The Northern Europe segment comprises Isero and Polvo in the Netherlands, where the business is the market leader in ironmongery, personal protective equipment (PPE), tools and fixings, and IKH in Finland, which holds a number two position in its core tools and PPE markets.
Grafton said that average daily like-for-like revenue in Northern Europe increased by 0.8% in the first half, driven by positive growth in Finland alongside more modest growth in the Netherlands.
Meanwhile, revenues at Grafton’s Iberia division jumped by 39.3% to £145.1m from £104.2m while adjusted operating profit before property profit soared by 116% to £14.1m from £6.5m with the growth reflected the inclusion of two months of trading from heating and air conditioning company Mercaluz.
The division also includes the Salvador Escoda business.
Grafton said that average daily like-for-like revenue in Iberia increased by 6.6% in the first half, benefiting from favourable economic conditions, record high first-half temperatures in Spain and strong commercial execution across its air conditioning, refrigeration and ventilation product categories.
