Grafton reiterates guidance on robust international sales

(Sharecast News) - British distributor Grafton Group reiterated full-year guidance on Monday, after strong international sales helped offset weakness in its home market. Updating on trading, the FTSE 250 company - which supplies the construction industry with products and services - said average daily like-for-like sales had nudged up by 0.6% on a constant currency basis in the six months to 30 June.

Sales were especially strong on the island of Ireland and Iberia, up 3.4% and 6.6% respectively, and helped offset a more subdued 0.6% rise in Northern Europe and a 5.1% slump in Great Britain.

"Market conditions remained challenging throughout the period," Grafton said of its domestic market, "with subdued construction activity and heightened economic and geopolitical uncertainty continuing to weigh to consumer confidence and investment decisions."

However, looking to the full year and the owner of Selco and Leyland reiterated full-year guidance for adjusted operating profits of between £190m and £200m, with conditions expected to remain "broadly consistent" in the second half.

Eric Bon, chief executive, said: "Today's trading environment demonstrates the quality of our businesses combined with the resilience and opportunity created by our exposure to multiple geographies."

As at 0945 BST, the stock was up 2% at 897.9p.

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