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Grafton and Howden Joinery benefit from home improvement boom

Consumers’ desire to upgrade their homes during the pandemic has spurred demand for kitchens and building materials
February 25, 2021
  • Grafton’s retail adjusted operating profit jumped by close to 90 per cent in 2020.
  • Howden plans to accelerate depot openings this year

Despite the severe disruption from Covid-19 during the first half of the year, building materials supplier Grafton (GFTU) saw its adjusted operating profit dip by just 6 per cent overall in 2020, to £193m, beating the group’s most recent January guidance as well as analysts’ expectations. This reflects a strong second half recovery in profitability driven by the residential ‘repair, maintenance and improvement’ (RMI) markets in the UK and Ireland.

Amid the pandemic-inspired DIY boom, adjusted operating profit from Grafton’s Irish retail chain, Woodie’s, surged by almost 90 per cent to £42m. Home improvement projects also supported sales across the group’s distribution businesses, offsetting some of the weakness in demand from non-residential construction customers.   

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