Grafton shares tumble as chief government Gavin Slark reveals exit plans after transformational tenure
- Gavin Slark joined the Dublin-based firm from BSS Group 11 years in the past
- Among the many acquisitions he had overseen whereas in cost embrace Leyland SDM
- Lately, Slark has helped lead Grafton via the Covid-19 pandemic
Boss: Gavin Slark (pictured) has been chief government of Grafton for the final 11 years
Constructing supplies provider Grafton Group has introduced that its boss will stand down on the finish of the yr after greater than a decade in cost.
Gavin Slark joined the Dublin-based agency as chief government in 2011 following a five-year spell holding the identical place at plumbing and heating merchandise distributor BSS Group, the place he oversaw its £557.6million sale to Travis Perkins.
Throughout his tenure at Grafton, he has steered the agency via a dramatic transformation, making quite a few acquisitions within the UK and abroad, akin to stair contractor Stairbox and adorning retail model Leyland SDM.
The corporate additionally transferred its major inventory market itemizing from the Irish capital to London, expanded into the Nordic area and offered off its conventional merchanting arm in Britain to Huws Grey.
Lately, Slark has helped lead Grafton via the Covid-19 pandemic, which initially brought about some downturn in commerce because of retailer closures throughout the British Isles earlier than recovering very strongly as lockdown restrictions had been loosened.
Final yr, the group posted its highest ever earnings of £341.2million due to document performances from its Northern Irish distribution enterprise MacBlair, and subsidiaries Woodie’s and Selco Builders Upkeep.
Alongside this, total income climbed by round 1 / 4 because of costs of constructing supplies in its British Isles distribution companies being pushed larger by provide chain disruption.
This occurred in tandem with low rates of interest, sturdy mortgage demand, and a brief stamp responsibility vacation launched by the UK Authorities in July 2020 boosting demand for property renovation and new housebuilding.
Commerce has continued to be optimistic since then, with revenues between 1 January and 17 April up 15 per cent from the equal interval final yr.
Subsidiary: Throughout his 11-year tenure, Gavin Slark has overseen a dramatic transformation of the agency, making quite a few acquisitions, akin to adorning retail model Leyland SDM
Chairman Michael Roney stated that Sunderland-born Slark ‘has made an excellent contribution to Grafton and offered distinctive management over the previous eleven years.
‘Beneath his stewardship, the group has additional prolonged its geographic footprint and has been remodeled right into a portfolio of upper high quality and better returning companies with wonderful market positions and powerful development prospects.’
Markets reacted negatively to information of his departure, with Grafton Group shares tumbling 6 per cent to 734.6p by the late afternoon, making it the third-biggest faller on the mid-cap FTSE 250 Index right this moment.
Slark stated the selection to depart was made ‘with a heavy coronary heart,’ however expressed confidence ‘that that is the correct time for a brand new CEO to steer the enterprise as Grafton embarks on its subsequent section of development and growth.
‘I stay very dedicated to the management of the enterprise over the subsequent six months and to working in the direction of a easy transition to my successor.’