Irish merchanting group Grafton is transferring its listing to the London Stock Exchange from October 15.
Three-quarters of all Grafton’s sales and 90 per cent of its profits come from the UK, where it operates as Grafton Merchanting GB and owns brands such as Jacksons, Buildbase, Plumbase and Selco.
The company generated €1.07bn (€1.27bn) in sales in the first six months of 2013, a 5 per cent increase on the year before.
The new UK listing will see its upcoming annual results reported in sterling rather than euro.Changes to the sterling/euro exchange rate have previously resulted in differences between reported results and actual results.
“The board believes that this change will help to provide a clearer understanding of the group’s financial performance by reflecting the functional currency of the majority of the group’s operations, and that it will reduce the impact of currency movements on reported results,” said a company statement.
The company also pointed out that its shareholder profile has changed significantly. The majority of its shares are now held by institutional investors located outside of Ireland; just 5 per cent of its institutional investors are based in Ireland.
“The group also remains fully committed to its Irish operations” said the company, which employs 2,000 people in Ireland and will remain headquartered, domiciled and tax resident in this country.
Shares in Grafton closed up 2.3 per cent at €6.90 after the announcement.