UK and Ireland builders merchant and DIY retailer Grafton Group raised full year profit forecasts after better-than-expected revenues during March and April.
The company on Wednesday said it expects annual adjusted operating to be 15% – 20% ahead of consensus forecasts of £206m. Turnover in the year to date was up 32.9%.
UK revenues were up 35.2% and 13% in Ireland while the Netherlands grew 3.9% as people turned to DIY projects during Covid lockdowns.
“Despite the partial lockdown of the construction sector in Ireland, the overall group had a good start to the year, with revenue growth gaining good momentum in March and April,” it said.
“Woodie’s in Ireland and Selco in the UK made the strongest gains, continuing the trend from the second half of last year. Strong demand and supply side constraints contributed to longer lead times, an increase in product price inflation and shortages of a number of key categories of building materials in the UK and Ireland,” it added.
Grafton said it was taking a cautious view of the second half “which is likely to be influenced by the pace of normalisation of consumer spending patterns”.
“We have made a very positive start to the year and are encouraged by the improving trends and momentum in trading in the period which we expect to continue through the remainder of the half year,” said chief executive Gavin Slark.
