It may seem that investors are preparing for the roof to fall in at Grafton Group. Easing demand from previously locked-down DIYers and homeowners who not that long ago were splashing out on repairs, maintenance and improvements, as well as the expectation of a deeper slump later in the year, have left the building materials supplier’s market valuation as weather-beaten as it was only two days after the first national lockdown. However, a large pile of cash, improved margins and a degree of geographical diversification make that assessment too pessimistic.
Some level of discount is understandable. Underlying revenue declined by 2 per cent during the second quarter compared with a boom in sales in the same period last year, as the UK and Ireland
