Woodie’s and Chadwicks owner reports boost in revenue as building activity increases

Revenue was marginally lower in Woodie’s in Ireland, due to lower demand for plants and gardening products

Sarah Collins

Woodie’s and Chadwicks owner Grafton Group has announced a £50m share buyback, its third in a row, as it expresses confidence in its prospects despite ongoing inflation.

The group reported a 2.8pc increase in total revenue to £704.3m in the first four months of the year – up to 23 April – in line with expectations.

That came even as overall volumes and revenues were lower than in the same period last year in the group’s distribution markets in the UK and Ireland, while they were flat in Finland and ahead in the Netherlands.

Building activity in Ireland – particularly on housing schemes and commercial developments – helped to buoy the group’s performance in the first part of 2023.

Wet March weather in Ireland and the UK affected retail trading, but the group’s builders’ merchants business Chadwicks “operated at high levels of activity” in Ireland, the group said in a trading update on Thursday.

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Housing scheme activity in Ireland was higher than for the construction of single homes or home repair projects.

Revenue was marginally lower in Woodie’s in Ireland, due to lower demand for plants and gardening products.

Lower timber and steel prices helped to moderate rising prices of building materials in its Ireland and UK distribution businesses.

Grafton Group’s UK Selco business saw a fall in revenue as households cut back on discretionary spending, including home repairs, Grafton said in a statement.

“Our resilient Q1 performance reflects the strength of Grafton’s diversified businesses and proximity to customers through its federated structure,” said chief executive Eric Born.

“The experienced management teams across the group’s portfolio of high-quality businesses have the capability to respond effectively to any changes in trading patterns that may emerge as the year develops.

“Since joining the group five months ago, I have spent significant time working with colleagues in our businesses to refine our development plans whilst also visiting many potential acquisition opportunities in European markets and I remain confident about the medium-term prospect of increasing shareholder value.”

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