Davy Research

Grafton Group

A strong year for Grafton
Builders Merchants
Grafton Group

DAVY VIEW

A solid final quarter concludes a strong year for Grafton. Like-for-like (LFL) revenue of 4.4% (3.0% in UK Merchanting) is better than expected. It also reflects on-going progress in all the group’s operations – each of the group’s geographies contributed to an improvement in profitability. Grafton’s efficient deployment of capital in recent years has therefore created a sector-leading proposition in the UK alongside attractive opportunities beyond (including Ireland and the Netherlands, where another small acquisition was announced this morning). We are likely to increase our current 2017 forecasts by c.2% for now and reiterate our ‘Outperform’ recommendation on the stock.

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  • RATINGS AND PRICE CORRECT AT TIME OF ISSUE


  • Grafton Group

    Closing Price: 76000p

  • RATING 15/12/15

  • PREVIOUS RATING 07/09/15

    Neutral

Analyst(S)

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