Revenue rose 10.1% to £1.25 billion, supported by integration of Spanish distributor Salvador Escoda and acquisition of HSS Hire Ireland
LONDON: Grafton Group plc reported a 9.5% rise in adjusted operating profit for the first half of 2025, driven by strong contributions from its Iberian operations and disciplined margin management, despite mixed market conditions across Europe.
The international building materials distributor and DIY retailer posted adjusted operating profit of £91.0 million for the six months ended June 30, up from £83.1 million a year earlier. Revenue rose 10.1% to £1.25 billion, supported by the integration of Spanish distributor Salvador Escoda and the acquisition of HSS Hire Ireland.
Gross margin improved by 60 basis points, offsetting inflationary overheads and higher labor costs. Adjusted earnings per share climbed 6.5% to 35.5p, while the interim dividend increased 2.4% to 10.75p. The Group maintained its operating margin at 7.3% and reported net cash of £245.8 million before lease liabilities.
CEO Eric Born said the Group’s diversification strategy is accelerating, with non-UK markets now contributing 64% of turnover. “Our strong balance sheet and liquidity leave Grafton in an excellent position to execute our growth strategy,” Born said.
The company plans a £25 million share buyback and expects full-year adjusted operating profit to align with analysts’ forecasts, pending performance in the key Autumn trading period.
Operationally, Ireland and Spain delivered robust growth, while the UK returned to profit despite a subdued RMI market. Activity in the Netherlands and Finland remains soft, though Grafton has strengthened its management team in anticipation of recovery.