Grafton Group profit up 22%
Published:  31 August, 2011

DUBLIN: Grafton Group reported merchanting operating profit up by 22% to 33.4m in its interim results for the six months ended 30 June 2011.

Pre-tax profits rose 13% 15.1m and revenues increased by 3% to 1,008m while adjusted operating profits jumped by 40% to 26.2m. An interim dividend of 2.75cent per share is approved, 10% up on last year.

Gavin Slark, chief executive said: "The group is well placed to deal with the continued difficult trading conditions in our core markets. A number of self help initiatives have been identified that will enable us to improve our performance in margins, costs control and cash generation.

"This leaves us in a strong position to take advantage of any economic upturn or expansion opportunities," Slark said in a statement.

UK turnover and profits increased with its UK operating margin improving to 4.5%. In Ireland, cost reductions improved returns in a weak market the company said in a statement.

Grafton reports that 72% of its group turnover is generated in the UK, slightly up on 2010 at 71%. Its UK turnover is up 5% while that in the Republic of Ireland is down 6%. Belgium turnover is up 7% on a like for like basis.

Grafton is the UK's third largest merchant with 10% market share after market leader Travis Perkins with 23% (excluding Wickes) and Wolseley at 19% share. Jewson is fourth with 18% share of the 12bn plus merchant market.

Sign Up

For the Builders' Merchants News enewsletter.

In the spotlight

We have vacancies all over the UK for those who work within the Building Supplies sector.