Shares in MacBlair owner soar after strong quarter

SHARES in the Grafton Group, which owns Northern Ireland builders merchant, MacBlair, surged more than 7% at one point yesterday after it posted a strong third-quarter update, with robust like-for-like sales figures for the period.

The group said that its revenue in the first 10 months of the year also rose 9.3% to £2.5bn and was 4.4% higher on a likefor-like basis.

“The group has benefited from its exposure to multiple geographic markets and saw its businesses in Ireland and the Netherlands perform well,” said chief executive, Gavin Slark.“Following a good first-half performance, overall trading in the last four months has underpinned our confidence that we will de- liver our expectations for the full year,” he added.

MacBlair operates 16 branches across Northern Ireland. Grafton also owns Irish DIY chain, Woodies, and merchanting businesses in the Republic, including Chadwicks and Heiton Buckley.

The group noted that average daily, like-for-like merchanting sales in Ireland rose 10% during the third quarter and were 7.8% higher on the same basis in the first 10 months of the year. Hot summer weather spurred sales at Woodies DIY, with average daily, like-for-like sales jumping 4.6% in the four months to the end of October, and by 9.9% in the first 10 months of 2018.

In the UK, the performance of Grafton’s merchanting business was more subdued than in Ireland, but average daily, likefor-like sales still rose 4.2% in the third quarter and by 2.7% in the first 10 months. Grafton’s business in the Netherlands also performed well. Davy Stockbrokers said it’s currently forecasting that Grafton’s operating profit will be £186m in 2018, which includes a property profit contribution of approximately £5m. However, it noted that Grafton’s revenues in the first 10 months of the year are “comfortably ahead” of the broker’s own expectations.