Trading Update

Grafton Group PLC
13 January 2006


                               Grafton Group Plc
                                 Trading Update
                                  January 2006

Group Turnover for 2005 exceeded €2.6 billion and Group earnings are expected to
be in line with market expectations of a basic EPS of circa 66 cent.

The Group benefited from a continuation of a favourable operating environment in
Ireland that compensated for weaker trading conditions in the UK during the
second half of the year. Heiton Group plc, acquired in January 2005, performed
ahead of Group expectations and contributed significantly to Group
profitability.

The Group remains positive in its outlook for the UK market but expects
difficult conditions to continue in that market during the first half of 2006.A
shortfall in like for like sales is anticipated compared to a strong performance
in the first half of 2005.  Following a recent marked improvement in UK macro
economic indicators, including a strong increase in mortgage lending, a higher
level of housing transactions, increased immigration and a reduction in UK
interest rates, the prospects for the second half are more favourable.  In
Ireland, the Group expects to benefit from a continuation of buoyant trading
conditions and good like for like merchanting sales growth throughout 2006.

During 2005 the Group continued to grow organically with the development of 19
greenfield outlets, 4 new Irish DIY stores, a new dry mortar plant in Bristol
and 14 merchanting outlets across the UK.

In the year to 31 December 2005 Grafton completed 17 acquisitions, 14 in the UK
and 3 in Ireland for a total consideration of circa €470 million 
(including €359 million for Heiton Group plc), adding 89 branches and 
increasing the branch network to over 480 trading locations.

Further organic growth is planned for 2006 with the development of additional
greenfield locations, the completion of the 9th dry mortar plant in the UK and
further DIY store openings in Ireland.  The Group also expects to benefit from
its healthy pipeline of potential acquisitions.

Ends                                                   13 January 2006

Michael Chadwick                                            Joe Murray
Executive Chairman                                  Murray Consultants
Grafton Group plc                     Telephone: (++353) [phone]
Telephone: (++353) [phone]

Colm o Nuallain                                         Ginny Pulbrook
Finance Director                                Citigate Dewe Rogerson
Grafton Group plc                    Telephone: (++44) [phone]
Telephone: (++353) [phone]

      A copy of this statement is also available on our website
                          www.graftonplc.com



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