Building materials giant Grafton Group said revenue is up 7.2 per cent so far this year on rising prices and growth at its Chadwicks chain in Ireland.
Hadwicks saw sales increase 37.5 percent (on an average daily comparable basis) as Irish homeowners spent more on repairs, maintenance and DIY.
There has also been an “acceleration” in residential, non-residential and new build public sector construction in Ireland, Grafton said in a trading update ahead of his annual general meeting in Dublin today
Chadwicks’ performance was “exceptionally strong, even adjusting for building materials price inflation and weaker trade for the same period last year,” the statement said.
Following exceptional growth in 2020, there has also been “further normalization of revenue” in Woodie’s Ireland DIY, home and garden business.
Woodie’s stayed open during the pandemic as it was seen as a key retailer.
Group revenue growth increased by 7.2 percent on an average daily basis and increased to 17.5 percent on a constant currency basis when acquisitions are included.
The group’s total revenue is up 15 per cent to £645.3m as of April 17, compared with the same period in 2021 (£561.1m), excluding the sale of Grafton’s UK trading business, which took place in April was sold in December.
Grafton has sold two properties in the UK so far this year, raising £24m in cash and £18.2m in profit, well above its previous forecast.
The positive development has enabled Grafton to announce a new £100m share buyback programme, subject to shareholder approval.
Grafton Group chief executive Gavin Slark said there were “generally good underlying demand conditions” in both the residential repair and maintenance and new construction markets.
“While there is some uncertainty as to how the pressure on disposable incomes will affect demand, we remain agile and react to trading patterns that may emerge later in the year,” he said.
“The group’s portfolio of high-performing businesses provides us with a resilient platform to outperform our markets, and with a strong balance sheet and continued investment opportunities, we are confident of making further progress in executing our mid-term strategy.”
https://www.independent.ie/business/irish/irish-building-boom-boosts-grafton-group-revenues-41595650.html The construction boom in Ireland boosts the Grafton Group’s revenues