DAVY VIEW

Grafton’s H1 revenues may have fallen 19% year-on-year (yoy) but we believe this represents a very resilient performance in extraordinary circumstances. Like-for-like (LFL) revenues fell just 1.1% in June with an improving trend through the month. Impressive cash management is the other salient feature of how Grafton has navigated COVID-19, with the group closing the half in a net cash position (pre-IFRS 16). The level of contraction in H1 revenues is significantly better than we had feared and this should have positive implications for current year forecasts.