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Grafton

Essay by   •  May 31, 2011  •  270 Words (2 Pages)  •  1,035 Views

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GRAFTON GROUP

The Grafton Group are a builders merchants and DIY group with operations in the UK and Ireland. The group has now over 500 trading locations within the two isles. Growth in its UK sector has been steady but not shocking. This is due to a general slowdown in the UK building trade. The same cannot be said however for its Irish operations. In a buoyant market, Irish turnover increased by 18% to 590.7 million (2005:500 million). Operating profit jumped by 31% to 57.1 million (2005:43.5 million). These results clearly show the benefits to the groups increasing exposure to the Irish market. Economic activity has been boosted by the growing population, high inward migration, high consumer spending (particularly on building and DIY) and the overall strength of the Economy. This trend is almost guaranteed to continue on into 2007 which favors very well for the Grafton Group. The Irish merchanting division, which trades from 59 locations mainly under the Chadwick's and Heiton Buckley brands, continues to deliver good profit growth, outperforming the overall market. The 46 store Irish retailing business division grew 15% in the last year after several years of weak growth due to an increase in the rate of savings. This to me is an indicator of the potential success the group will have in the forthcoming year. With the volume of retail sales forecast to grow by over 6% and the realization of the governments SSIA scheme coming into effect, expect to see the car-parks of Woodies and Atlantic Homecare DIY jam packed, as the DIY obsessed Paddy finally gets his hands on his long awaited stash.

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