(Alliance News) - Grafton Group PLC on Tuesday said it expects to beat analyst profit forecasts for 2021, as well as 2019 levels, as revenue jumped by more than a quarter.
Shares in the company were trading 0.5% lower at 1,355.00 pence each in London on Tuesday morning.
The Dublin-based building materials distributor and DIY retailer said in the 10 months to October 31, total revenue from continuing operations - which excludes the traditional merchanting business in Great Britain that is being divested - increased 28% to GBP1.76 billion from GBP1.37 billion a year ago. Compared to 2019, revenue was up 27% from GBP1.39 billion.
Grafton said the positive revenue trends experienced in the first half were sustained in the period, supported by good underlying demand in the company's markets and further normalisation of trading conditions as Covid-19 restrictions were lifted.
"The strength of the group's brands and trading formats together with generally favourable conditions in its markets contributed to an encouraging outcome for the period despite supply chain pressures and heightened price inflation for building materials that was the key driver of revenue growth in the distribution businesses in the UK and Ireland," the firm said.
Looking ahead, Grafton guided for group adjusted operating profit in continuing operations of between GBP265 million and GBP270 million. This higher than current consensus analysts' forecasts of GBP256 million.
In 2020, group adjusted operating profit came in at GBP193.3 million, having fallen 5.6% from GBP204.8 million in 2019.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Grafton Group (GFTU)