Grafton hails 'very strong' performance across business as FY profits jump

Building materials distributor and DIY retailer Grafton posted a jump in full-year profits and revenue on Thursday as it hailed a "very strong" performance across all businesses and record contributions from Woodie’s and Selco.

In the year to the end of December, adjusted pre-tax profit grew 83.5% to £268.6m, on revenue of £2.1bn, up 25.6% on the previous year.

Grafton said its market-leading businesses in the UK, Ireland and the Netherlands performed strongly. The Woodie's DIY, home and garden retail business in Ireland benefitted from an "exceptional" level of demand in the first half, it said, which eased following the reopening of non-essential retail.

Meanwhile, Selco Builders Warehouse, which now makes up three quarters of Grafton’s UK distribution business, achieved a "significant" step-up in revenue and profitability.

Chief executive Gavin Slark said: "2021 saw record profits, a step change to higher returning businesses following the divestment of our Traditional Merchanting business, exposure to a new growth platform in the Nordics and increased focus on digital and sustainability opportunities.

"Trading year to date has been encouraging and the outlook for 2022 is positive, supported by strong housing and RMI (repair, maintenance and improvement) markets, the inherent strength of our businesses, our strong balance sheet and future investment opportunities."