Grafton Group keeps full year operating profit guidance

Grafton Group, which owns Woodie’s DIY, Chadwicks, HSS Hire Ireland and Cygnum here, has reported higher half year revenues and maintained its full year operating profit guidance of £190-200m.

In a trading update for the six months to the end of June, Grafton said group revenue increased by 6.7% to £1.34 billion from £1.25 billion the same time last year.

Grafton noted that its growth was supported by contributions from HSS Hire Ireland and Cygnum, which were bought in May 2025 and March 2026 respectively, together with two months of trading from Mercaluz in Spain, which was acquired in April.

The company said that average daily like‑for‑like revenue in the first half increased 0.6% despite ongoing challenges in certain markets, as geopolitical uncertainty continued to weigh on market confidence.

“Strong momentum in Iberia, coupled with continued growth in the Island of Ireland and modest growth in Northern Europe, was largely offset by a weak performance in Great Britain throughout the first half,” it stated.

It also said that it has seen no material disruption from geopolitical developments in the Middle East and continues to proactively manage supply chain risks to maintain strong stock availability.

Grafton said its island of Ireland businesses saw average daily like-for-like revenue growth of 3.4% in the first half.

It said that improving construction activity supported growth at Chadwicks in the second quarter, following weather-related disruption earlier in the year.

The company added that the integration of Cygnum – which supplies made-to-order offsite timber frame solutions to developers and contractors in Ireland – continues to progress well and further strengthens Grafton’s presence in this “attractive growth market”.

Meanwhile, Woodie’s traded slightly ahead of strong prior year comparatives, when favourable spring weather in 2025 accelerated demand for garden and outdoor living products.

Grafton said that average daily like-for-like revenue in Great Britain declined by 5.1% in the first half of the year, due to continued weakness across construction markets.

“Market conditions remained challenging throughout the period, with subdued construction activity and heightened economic and geopolitical uncertainty continuing to weigh on consumer confidence and investment decisions,” it stated.

Meanwhile, average daily like‑for‑ like revenue in Northern Europe increased by 0.8% in the first half, driven by growth in Finland alongside more modest growth in the Netherlands,.

And Salvador Escoda’s average daily like-for-like revenue increased by 6.6% in the first half in its Iberia division on the back of favourable economic conditions, record first-half temperatures in Spain and strong execution of sales growth across its air conditioning, refrigeration and ventilation product categories.

Eric Born, chief executive of Grafton Group, said today’s trading update demonstrates the quality of the businesses combined with the resilience and opportunity created by its exposure to multiple geographies.

“Strong growth in Iberia and the Island of Ireland, together with continued progress in Northern Europe, has largely offset ongoing weakness in Great Britain,” the CEO said.

“We are confident of meeting our adjusted operating profit expectations for 2026 of £190m-200m and delivering on our target of compound annual adjusted EPS growth of more than 10% out to 2030,” he added.