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09 Nov 2021 | 08:22

Grafton upgrades full-year profit forecast

(Sharecast News) - Building materials distributor and DIY retailer Grafton said on Tuesday that full-year operating profits were set to be ahead of market expectations following stronger-than-expected trading. In an update for the period from 1 July to the end of October, the company said it now expects full-year group adjusted operating profit in continuing operations to be between £265m and £270m, versus market expectations of £256m.

Grafton said the positive revenue trends seen in the first half were sustained during the period, supported by good underlying demand in its markets and as trading conditions normalised with the easing of Covid-19 restrictions.

"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," it said.

In the 10 months to the end of October, total revenue from continuing operations - which excludes the traditional merchanting business in Great Britain that is being divested - rose 28.3% to £1.76bn.

Chief executive Gavin Slark said: "The overall group delivered a good performance in the period, against strong comparatives, leading to an increase in current year operating profit guidance supported by the strength of our market positions, geographic diversity and strong financial position."

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