The improved figure, up from €10.3m in 2011, was supported by a 3.1% increase in turnover in Grafton’s UK merchanting business, which includes Buildbase, Selco and Jacksons. The UK businesses, which accounted for 74% of group revenue, increased operating profits by 21.9% as a result of better cost control, improved margin management and integration benefits.
In Ireland, where the company is based, volumes fell for the fifth consecutive year and revenue fell 8.5% to €280.8m (2011: €306.8m). Operating profits (before restructuring costs) fell to €3.3m (2011: €4.1m).
The company says it is cautious about the near-term prospects for its markets but it expects to make further progress this year through a new phase of measures to increase profitability.
"The self-help measures implemented over the last two years have enabled Grafton to make significant progress in very challenging conditions," said CEO Gavin Slark.
