Shares of Grafton Group Plc (LON:GFTU_u) fell just over 2% on Friday after the building materials distributor published trading updates showing flat group like-for-like revenue across the four months ended April 30. While three of Graftons regional segments recorded growth, a 5% drop in Great Britain offset those gains.
Group revenue for the period rose 3.2% to 830.1 million, a figure that incorporates sales from recent acquisitions. On a like-for-like basis averaged across trading days, group revenue was unchanged over the period.
Grafton maintained guidance for adjusted operating profit for the full year at between 190 million and 200 million. The companys compiled analyst consensus sits at 190 million, making the midpoint of the groups range - 195 million - slightly above that consensus.
"Despite headwinds, we are currently guiding adjusted operating profit in the range of 190m - 200m for 2026 which would represent another year of progression," Chief Executive Eric Born said.
On a regional basis, average daily like-for-like revenue rose 1.8% in the Island of Ireland, 1.6% in Northern Europe and 5% in Iberia. Great Britain was the outlier, declining 5% over the same period. The company noted that Great Britain accounted for less than a quarter of Graftons adjusted operating profit in 2025, excluding central activities.
Graftons trading statement also referenced commentary from independent market observers who anticipate total construction output in Great Britain could contract in the current year. The company did not provide additional detail beyond reporting those external views.
During the period Grafton completed two acquisitions. Cygnum, a business supplying made-to-order timber frame solutions in Ireland, was finalised on March 31. Mercaluz, a Spain-based distributor of air conditioning equipment that operates from 18 locations and reported 2025 revenues of 150 million and profit of 22 million, closed on April 30.
Grafton said the contribution from these acquisitions helped offset weaker trading in Great Britain when shaping its full-year outlook.
On costs and supply, the company reported no material supply chain disruption to date. It did, however, flag supplier price increases and higher fuel costs and warned that sustained cost inflation could exert pressure on margins.
Grafton has also been active in returning capital to shareholders. Across eight buyback programmes the group has repurchased 52.03 million shares at an average price of 8.71, returning 453.3 million and reducing its share count by 21.6%. The eighth programme, launched on March 5 and targeting up to 25 million, involved the repurchase of 2.75 million ordinary shares.
Market reaction to the trading update was reflected in the modest share price decline following the announcement, as investors weighed the offset between regional growth and UK weakness together with the companys profit guidance and capital returns.