DAVY VIEW

Grafton has reported a modest increase in organic revenues for the first half of the year, boosted by good growth in Iberia and the Island of Ireland. Full year operating profit guidance is unchanged. The update follows a recent well-received Capital Markets Event that set out ambitious, but credible, financial targets out to 2030. We continue to believe the subdued Grafton share price and valuation (2027 P/E of circa 10x) is at odds with the medium-term outlook for the group.