Selco owner Grafton hits £2.3 billion revenue so far in 2017

Selco owner Grafton reported revenue growth in the first nine months of 2017, up 9.1% to £2.3 billion (2016: £2.11 billion, like-for-like).

In constant currency terms, Group revenue increased 6.9% in the nine month period ending 31 October 2017.

The UK Merchanting arm of the business, including perhaps Grafton’s best known brand, Selco, grew 5% and benefited from a comparison with a relatively weak period last year.

Demand softened in October and volumes were largely flat compared with an improving trend in Q4 2016. Pricing remains competitive going into year-end.

Selco remains on course to open 12 branches this year, bringing the total up to 59.

Ireland, Netherlands and Belgium

Grafton said the prospects for sustained growth remain positive for Irish merchanting, with the local house building sector gathering momentum following a poor spell. Grafton’s Netherlands merchants performed strongly thanks to the Dutch economy’s increased housing market activity. Belgian Merchants saw modest growth in revenue in a “stable but competitive market”.

Expectations were unchanged for the full year, according to Grafton Group CEO Gavin Slark: “We anticipate that current trading conditions in the UK merchanting business are likely to continue over the remainder of the year while the Irish and Netherlands businesses should benefit from favourable trading conditions and strong market positions.”

Selco’s portfolio of brands include Selco, Buildbase, Plumbase, MacBlair and CPI EuroMix in the UK; Chadwicks, Heiton Buckley and Woodie’s in Ireland; Isero and Gunters en Meuser in the Netherlands and YouBuild and MPRO in Belgium.