UK profits up 28% for Grafton

Official interim results for Grafton Group released this morning, show a strong performance over the past six months with an increase in turnover of 13%, in line with the trading statrement issued last month.

Originally not due until September, the group brought the results forward in order to allow it to buy shares following a significant drop in its share price this year.

Sales were up by 13% to €1.61bn in the six months to June 30, while operating profit grew 16% to €124.4m. The UK business actually slightly outperformed the group as a whole, showing a revenue increase of 17% and an operating profit rise of 28%.

The company said that this rise in profit was “helped by good underlying demand in the residential repair, maintenance and improvement market and contributions from acquisitions.”

Five UK merchant businesses were acquired in the period, trading from a total of 21 branches. Plus eight new branched opened in the UK through organic growth.

Buildbase was the star of the period, say Grafton Group, showing “substantial like-for-like sales growth, an improved trading margin due to more favourable purchasing agreements and a sustained focus on cost control”.

Commenting on the results executive chairman Michael Chadwick said: “The growth in sales, profits and earnings derives from a strong performance in the UK business and solid profit growth in Ireland. The group is confident in the quality of its brands and businesses and believes it is well placed to respond to changing market conditions.”