Buildbase reports increased profits in 201515 March 2016
Solid demand in the RMI and new build markets buoyed Buildbase’s sales and operating profits in 2015, according to results published by parent company Grafton Group plc.
Grafton said good contributions were recorded from the 10 branches acquired in the second half of last year.
The benefit of increased demand in the like-for-like business and an improvement in the gross margin was partially offset by increased costs related to strategic initiatives.
The business was expanded with the purchase of specialist timber business T Brewer trading from three branches in London and Allsands, a general builders merchanting business located in Larkfield, Kent.
Group-wide, Grafton recorded revenue of £2.2bn (2014: £2.08bn) and pre-tax profits were up by 17% to £118.9m (2014: £101.2m).
Of that, UK merchanting revenue increased by 8.9% to £1.66bn (2014: £1.53bn) and operating profit was up by 13.8% to £105.58m (2014: £92.78m).
Growth of 3.9% in average daily like-for-like revenue was driven by increased activity in the residential RMI and new build markets.
The merchanting business in Ireland reported a significant increase in revenue and operating profit for the second successive year against the backdrop of a strong recovery in the economy and generally good but competitive market conditions.
"We continued to invest in organic growth initiatives and selective acquisitions, most notably Isero in the Netherlands," said Gavin Slark, Grafton CEO.
"We are confident about the overall prospects for the group and expect to deliver organic growth in the year ahead and to also benefit from recent development activity as well as exposure to the strengthening economies in Ireland and the Netherlands."