Grafton Group has released a confident trading update for the four month to 30 April 2026.
During the first quarter of 2026, the group's revenue increased by 3.2% to £830.1 million (2025: £804.4 million), up 1.0% in constant currency. This growth included the positive impact of two acquisitions in Ireland, including HSS Hire Ireland on 31 May 2025, and one month of trading by Cygnum, a supplier of offsite timber frame solutions.
The group's average daily like-for-like revenue was in line with the prior year, despite ongoing headwinds in certain markets, which have been further impacted by greater geopolitical uncertainty. A robust performance in Iberia, alongside more modest sales growth in the Island of Ireland and Northern Europe, was fully offset by weaker trading in Great Britain. Trading in the seasonally less important early months of the year was also influenced by exceptionally wet weather in Ireland and the UK.
Though it has experienced no material disruption to date, the group says it continues to actively manage supply chain risks arising from conflict in the Middle East, maintaining high levels of stock availability for customers. Supplier price increases and higher fuel costs are being closely managed, while the group remains mindful that sustained cost inflation may place pressure on market demand and volumes. Against this backdrop, its focus remains firmly on disciplined cost control and margin management.
Average daily like-for-like revenue in Great Britain declined by 5.0% in the period compared with the prior year, reflecting a further weakening in construction markets. Following a weather-impacted slow start to the year, subdued construction activity was affected by rising cost inflation and weaker consumer confidence linked to the conflict in the Middle East. All businesses have responded to the challenging market environment by maintaining tight cost control and driving efficiency improvements.
The group's Island of Ireland businesses delivered average daily like-for-like revenue growth of 1.8% in the period in comparison to last year driven by strong growth in Chadwicks, which benefited from a pick-up in construction activity in recent months following persistently wet weather earlier in the year and some forward purchases ahead of price increases. Woodie's trading was slightly behind strong prior-year comparatives, when favourable weather in early Spring 2025 pulled forward demand for plant and garden related products.
The acquisition of Cygnum, a leading made-to-order supplier of offsite timber frame solutions to developers and contractors in the Irish market, was completed on 31 March 2026. The acquisition is expected to broaden Grafton's exposure to the growing new-build market in Ireland and enable Cygnum's customers to benefit from access to a wider range of construction-related products and solutions. The integration process is underway and progressing as planned.
With the acquisitions Cygnum and Mercaluz in Iberia, which are expected to offset weaker trading in Great Britain, full-year adjusted operating profit is now expected to be in the range of £190 million to £200 million.
Grafton's geographically diversified portfolio underpins its resilience, with over 75% of Group profits in 2025 generated outside Great Britain. Trading conditions remain supportive in the Island of Ireland and Iberia. In Great Britain, representing less than a quarter of Grafton's 2025 operating profit, the outlook has weakened, with independent commentators suggesting that total construction activity is now expected to contract in the current year.
Notwithstanding ongoing geopolitical uncertainty and any associated inflationary or supply chain pressures, Grafton sees the medium-term fundamentals remaining positive, supported by structural housing shortages across its markets and an expected recovery in RMI demand following an extended period of underinvestment by households. The group says its balance sheet remains strong, leaving it well positioned to support future development opportunities as they arise.
Eric Born, Chief Executive Officer of Grafton Group, commented: "The first four months of 2026 demonstrate Grafton's resilience and strategic focus. While markets continue to face uncertainty, we are pleased to report growth in three of our four markets, alongside significant acquisitions in our strongest growth markets of Iberia and the Island of Ireland.
"Despite headwinds, we are currently guiding adjusted operating profit in the range of £190 million to £200 million for 2026, which would represent another year of progression. At our upcoming Capital Markets Event, we look forward to outlining the ambition to develop each of Grafton's geographic segments further, supported by a strong balance sheet and leveraging the power of the Group."
