Grafton Group PLC (ISE:GFTU) shares fell 9% on Thursday, leading the FTSE 250 losers’ board, after the building materials distributor and DIY retailer warned that trading momentum had eased since mid-May.
For the first half of 2025, the group reported revenue of £1.25 billion, up 10% on last year, boosted by recent acquisitions in Spain and Ireland.
However, underlying like-for-like daily revenue rose just 2.4%.
The company noted a slow start to the year followed by a pick-up, but said business activity softened again in late spring amid rising global uncertainties and a potential dip in customer confidence.
Grafton said it will monitor summer trading closely after the loss of trading days in several markets weighed on comparative growth.
The stock fell 85.4p to 909.6p.
Peel Hunt noted that Grafton shares are up 4% so far this year, roughly matching sector peers, and trade at 12 times forecast earnings for next year.
The broker says these remain attractive levels for a company with Grafton’s history and financial strength.
Stifel added: "[Grafton is] well-run with a strong balance sheet, Grafton has exposure to UK recovery as well as the growing markets of Ireland and Spain."
Both Peel and Stifel remain 'buyers'.