LONDON (ShareCast) - (Sharecast News) - Building materials distributor Grafton Group increased its second-half operating profit guidance on Thursday as it turned in a strong trading performance for the four months ended 31 October.
Grafton said revenues and profitability for the period were ahead of expectations, with revenues up 6.3% year-on-year, leading the group to up its adjusted operating profit guidance for the second half to between £130.0-140.0m - up 24-33% on the prior year.

However, revenues for the ten months ended 31 October were down 9.0% at £2.07bn due to the impact of the Covid-19 pandemic on trading in the second quarter.

The FTSE 250-listed firm highlighted that it had benefitted from pent-up demand developed during lockdown and from households investing part of the savings from reduced spending on travel, leisure and hospitality in their homes.

Chief executive Gavin Slark said: "Despite all the current uncertainties, we are very encouraged by the trading and financial performance of the group over recent months.

"Grafton is in a very strong financial position and has a diversified portfolio of market-leading businesses with exposure to residential RMI leaving it well placed to benefit from current market trends."

As of 0925 GMT, Grafton shares were up 5.24% at 828.20p.

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