Building materials distributor and DIY retailer, Grafton Group has delivered strong profit growth for the first half of 2025, underpinned by strategic investments, improved margins, and ongoing acquisition efforts.
For the six months to 30 June 2025, the Dublin-headquartered firm saw its revenue increase 10.1 per cent to £1.2 billion from £1.1 billion in the same period a year previous.
Adjusted operating profit increased 9.5 per cent to £91 million (HY1 2024: £83.1 million), staying on track to meet full-year expectations to £185.1 million, while adjusted pre-tax profit rose 3.2 per cent to £86.8 million (HY1 2024: £84.1 million).
Despite a 31.9 per cent drop in net cash to 31.9 per cent to £245.8 million from £361.1 million the group said its strong financial position provided “firepower” for growth opportunities.
The first half also saw a positive turnaround in UK distribution, which returned to profit growth for the first time since 2021, despite a challenging repair, maintenance and improvement market.
The company also revealed a £25 million share buyback programme, aimed at reducing its share capital.
This follows Grafton’s strategy of returning over £403 million to shareholders since May 2022.
The buyback, set to run until January 2026, provides for the repurchase of up to 18.5 million shares, managed independently by Goodbody Stockbrokers and Numis Securities, subject to market conditions.
CEO Eric Born emphasised the company’s focus on both organic and inorganic growth and was actively pursuing strategic bolt-on and platform acquisitions.
This would build on recent acquisitions, such as HVAC distributor Salvador Escoda and tool hire specialist HSS Hire Ireland, both contributing to the company’s accelerated growth.
Born added: “Whilst we saw an easing of trading momentum towards the end of May and into June, the start of the second half has seen a return to growth of group average daily like-for-like revenue.
“Outlook for the full year varies by market, but in the round, and with the important autumn trading months to come, we expect full year adjusted operating profit to be broadly in line with analysts’ expectations.”
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