Pre-tax profits at Travis Perkins rose 14% to £85.7m during 2000, and further progress is forecast for 2001.
Announcing its results, the company revealed that turnover last year increased by 35.1%, rising from £874.3m in 1999 to £1.18bn in 2000.
Chief executive Frank McKay said the recent reduction in interest rates, the first for 19 months, should lead to greater activity in the construction sector in the medium term.
At the end of 2000, Travis Perkins was trading from 473 branches. Mr McKay said the company’s specialist timber operation, DW Archer, had experienced challenging trading conditions in the latter part of the year with the slowdown in house construction in the south of England.
He said the decision to integrate the business into the Travis Perkins Trading Company management structure in January meant it would benefit from the product diversity and purchasing strength of the wider group.
