Grafton’s UK merchant sales grow nearly 10% this year

Grafton, which operates the Buildbase, Selco, Macnaughton Blair and Plumbase chains in the UK, said its total UK merchanting review increased 6.7% to £1.39bn (2012: £1.3bn) in 2013, while the division's operating profits grew by 19.8% to £75.9m.

The company said volume growth had resumed following five years of flat or declining volumes, with Buildbase sales "benefiting greatly" from increased activity in the new housing and RMI markets.

Selco delivered a significant increase in operating profits thanks to its continued focus on the residential RMI market with its retail-style self-select format.

Its performance in London was especially good, with strong results from the first full year of trading at the Hanworth and Tottenham outlets, while significant market penetration was quickly achieved in the south London market following the opening of stores at Old Kent Road and Wimbledon. Some 18 of Selco's 34 branches are in the London area.

Grafton's Irish merchanting business saw sales grow 6.7% to £243m and operating profits almost doubled to £5.2m as the Irish housing market showed signs of improvement.

Daily like-for-like revenue grew 6.7% in the second half of 2013, mirroring the growth pattern seen in the UK.

"This was the first year since 2006 for the merchanting business in Ireland to report growth in like-for-like revenue," Grafton said.