StockMarketWire.com - Building materials distributor Grafton upgraded its guidance on annual adjusted operating profit following 'stronger' than expected performance in November and December.

For the financial year ended 31 December 2020, adjusted operating profit would be 'slightly' more than 5% ahead of current consensus of £174 million, the company said.

The outturn, however, would be lower than 2019, owing to the significant impact of Covid-19 in the first half, the company said.

For the year to 31 December, revenue was expected to be down 6.1%, with daily like-for-like revenue down 8.7%.

For the two months to 31 December daily like-for-like revenue was up 7.2%, with UK and Ireland growth up 5.1% and 10.3% respectively, while growth in the Netherlands fell 1.1%.

'This marked a continuation, through to the year end, of the strong recovery evident in the four months to the end of October which followed a sharp decline in second quarter revenue caused by the pandemic,' the company said.

'Demand was strongest in the Woodie's and Chadwicks businesses in Ireland and in Selco in the UK,' it added.




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