Investors

 

Share Purchase Payments

When an investor acquires a Grafton unit it comprises one Grafton Group plc ordinary share, one Grafton Group (UK) plc 'C' ordinary share and twenty Grafton Group plc 'A' ordinary shares.

Grafton does not currently pay a dividend. The Group uses, in accordance with shareholder approval, part of its distributable reserves to purchase one of the 'A' ordinary shares for cash, from shareholders on the register at a given record date.

Under current Irish tax legislation this payment to Irish shareholders should generally be treated as a capital transaction and should therefore be subject to the current Irish capital gains tax of 20%. Overseas shareholders should be subject to the tax treatment applicable, under the tax legislation in their jurisdiction, on the payment. Institutional investors who are fully exempt from tax should have no tax liability on the payment.

Grafton is committed to the payment of cash annually to its shareholders and has a stated policy of increasing this annual cash amount in line with the growth in the performance and earnings of the Group.

Compound Annual Growth Rates to end-December 2007
Last five years Last 10 years Since 1987
Payment to shareholders 21% 23% 23%

The above is for general information purposes only and is based on Grafton Group plc's understanding of the position as at 4th April 2008. Shareholders should take their own professional advice on all matters relating to an investment in Grafton Group plc.