(Sharecast News) - Building materials distributor and DIY group Grafton upgraded full year profits guidance after as households spent a greater proportion of disposable income on their homes in November and December.
The company on Tuesday said revenue and profitability in the final two months of the year was ahead of expectations, with total revenue up almost 11% to £439.4m.
Adjusted operating profit was expected to be around 5% ahead of consensus estimates of £174m, although the outturn would be lower than 2019 due to the significant impact of Covid-19 in the first half.
Group revenue for the year from continuing operations fell 6.1% to £2.51bn, reflecting a sharp decline in trading during the second quarter lockdown that was significantly offset by a strong recovery in the second half of the year, Grafton said.
"Demand was strongest in the Woodie's and Chadwicks businesses in Ireland and in Selco in the UK. The Group benefitted from its strategy of investing in higher returning businesses and from households spending a greater proportion of disposable income on their homes," Grafton said.
Grafton Group (GFTU)1 May 2024 10:06
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