Grafton

GRAFTON GROUP

The Grafton Group are a builders merchants and DIY group with operations in the UK and Ireland. The group has now over 500 trading locations within the two isles. Growth in its UK sector has been steady but not shocking. This is due to a general slowdown in the UK building trade. The same cannot be said however for its Irish operations. In a buoyant market, Irish turnover increased by 18% to 590.7 million (2005:500 million). Operating profit jumped by 31% to 57.1 million (2005:43.5 million). These results clearly show the benefits to the groups increasing exposure to the Irish market. Economic activity has been boosted by the growing population, high inward migration, high consumer spending (particularly on building and DIY) and the overall strength of the Economy. This trend is almost guaranteed to continue on into 2007 which favors very well for the Grafton Group. The Irish merchanting division, which trades from 59 locations mainly under