Grafton Group grows annual revenue by 6.3%12 January 2016
Merchanting giant Grafton Group plc has recorded a 6.3% increase in annual revenue to £2.21bn for the year ended December 31, 2015.
The group, whose builders merchant and DIY outlet operations include Buildbase, Selco and Woodie’s, saw its UK annual revenue rise 8.9%, with a 3.3% average daily like-for-like revenue growth in the final quarter. Its Irish merchanting business saw a strong performance in the final quarter with a 7.9% average daily like-for-like revenue growth.
Development of the Selco business continued in 2015 with the opening of five new branches, including Southampton and Weybridge, prior to the year-end to take the total number of branches now trading to 40. A similar number of openings are planned in 2016.
The merchanting business in Ireland continued to perform strongly as record low interest rates and growth in house prices and housing transactions supported increased activity in the residential repair, maintenance and improvement and new build markets against the background of an acceleration in the rate of growth in the Irish economy.
Meanwhile, an increase in employment and disposable income combined with a sharp improvement in consumer confidence in Ireland supported a recovery in retail spending which broadened into the DIY sector in the second half of the year.
The pick-up in demand and promotional activity contributed to a strong second half revenue growth in the Woodie’s business. The group expects to make an operating profit in the £125.5m-127m range. Its final results are set to be announced on March 8.