Grafton Group’s UK merchanting business, which includes the Buildbase chain, saw its operating profits increase by 14.1% to €31.9m.
Turnover in the division, which also includes Jackson Building Centres, was up 5% to €712.7m, with operating margins up 4.5%.
The business saw average daily like-for-like turnover growth of 4.7% in the half year, reflecting a sharp weather related increase in January and stable growth of 3.3% over the course of the February to June period.
Buildbase experienced a healthy advance in turnover in its general merchanting business. Selco reported strong growth in turnover and operating profit.
Turnover in the Irish merchanting business declined by 7.2% to €149.4m (2010: €161m).
“It is expected that the current softness in UK growth and pressure on disposable incomes will continue to weigh on consumer spending over the remainder of the year,” Grafton said.
“The uncertain outlook for the economy, low consumer confidence and tight lending conditions are likely to limit near-term growth in housing transactions and a recovery in RMI volumes from the current historically low levels.”
