Strong performances by the Buildbase and Jackson builders merchant chains has helped Grafton Group plc’s UK business to a 38% rise in annual operating profits.
Fast-growing Buildbase, which has more than 100 branches, saw its timber and wood products turnover grow by 25% to £40m in 2004.
Martin Lee, Buildbase’s commercial director responsible for timber and building materials, said: “All our business has grown significantly over the last year. Timber and wood products was about 15% of Buildbase turnover.”
The company says it also expects to achieve Forest Stewardship Council (FSC) certification for all its carcassing products by mid-2004, to add to FSC certification already achieved for planed goods.
Buildbase acquired nine businesses from 12 branches during 2004 and opened two new sites at Stratford and Cirencester.
Jackson’s first full year as part of Grafton produced a “strong advance” in operating profits. It opened a new greenfield branch in Louth, replaced the Swinton operation with a new purpose-built facility and completed a small bolt-on acquisition to provide further growth in the Linconlshire market.
Ireland-based Grafton said its UK merchanting business recorded operating profits of €108.4m in 2004 – its sixth consecutive year of operating profit growth. The UK accounted for 76% of group turnover.
The business, which saw turnover grow 28% to more than €1.4bn, benefited from strong demand in the repair, maintenance and improvement sector.
Grafton’s UK builders merchanting network now stands at 163 branches.
The group’s overall group pre-tax profit (including Ireland) soared 29% to €131.9m, with sales rising 25% to €1.9bn.
