Woodie's DIY owner Grafton Group has said its medium-term outlook remains positive amid housing shortages across all markets after seeing revenues increase 10.1 per cent during the first half of the year.
The group reported turnover of £1.25 billion (€1.45bn), up from £1.14bn during the same period last year, following the acquisitions of HSS Hire Ireland and Spain's Salvador Escoda.
Average daily like-for-like revenue was 2.5 per cent higher year-on-year following a slow start to 2025 and a slowdown in mid-May to June as consumer confidence dipped due to global uncertainties.
In Ireland, average daily like-for-like revenues rose 7.6 per cent at Woodie's the and 3.7 per cent at the Chadwicks distribution business following Storm Éowyn in January, and the integration of HSS Hire Ireland is now underway.
Grafton Group said the outlook for growth in the construction sector remains positive as the government looks to boost housing completions, but the industry persistent faces challenges in the shape of planning delays, utility connection issues and labour shortages.
In the UK, average daily like-for-like revenues rose marginally (+0.2 per cent) supported by product price inflation of two per cent, although repair, maintenance and improvement (RMI) demands remains soft, and particularly in London.
Elsewhere, average daily like-for-like revenues rose 6.9 per cent in Spain, 2.8 per cent in the Netherlands and declined 4.2 per cent in Finland. Manufacturing revenues were 5.2 per cent higher compared to the same period last year.
“We are pleased that our trading performance was in line with our expectations for the first half," said Eric Born, chief executive at Grafton Group.
"Trading activity recovered strongly after a subdued start to the year however there was a slow down in momentum from mid-May and into June as a spike in geopolitical uncertainty appeared to dent consumer confidence in the period.
"Though we remain cautious about the timing of a broader recovery, particularly in the UK and Finland where markets remain challenging, we remain very well positioned to capitalise on our market leading positions as the cycle turns."
Grafton completed a £30m share buyback programme this week, involving the repurchase of 3.29m ordinary shares, and the group has returned £403.3m to shareholders since 2022 at an average share price of £8.67.
"Despite macroeconomic uncertainty, the medium-term outlook for Grafton remains positive, supported by housing shortages across all our markets and an anticipated recovery in RMI demand," the company said in a statement.
"We continue to invest in and strengthen our market positions supported by a robust balance sheet and strong cash flow generation."
(Pic: Igor Golovniov/SOPA Images/LightRocket via Getty Images)
