In Finland, a market Grafton entered two years ago when it bought IKH, a specialist workwear, tools and spare parts wholesaler and distributor, a decline in building permits for new homes and rising mortgage rates since the middle of last year have kept revenues in check. Stronger demand from customers in Estonia and Sweden saved the unit from an outright decline in revenues.
Woodie’s stood out as a bright spot at Grafton, with operating profit rising 11.9 per cent, almost twice the pace of sales, with consumers upping spend on gardening and small DIY projects in the second quarter as concerns about the economy outlook and cost-of-living crisis eased, according to the company.
The almost-obligatory strategy review that Born has carried out since taking over the helm hasn’t yielded any big new ideas. “It’s evolution, not revolution,” he told analysts on a call on Thursday. But he has made some notable tweaks. While Slark published a chart at an investor day in late 2021 flagging the possibility of acquisitions in the US and Canada, Born is now restricting the group’s focus to Europe. He is reluctant to be more specific than to say that the likes of Greece, Belarus and Russia are out.