The UK merchanting operations of the Irish-owned Grafton Group have traded strongly this year to put on a 28% increase in operating profit, latest company figures reveal.
The success of Buildbase, Jacksons and Flemings among others, helped the group to an overall 18% rise in pre-tax profit to €106.4m for the first six months.
The figures, due to be published in September, were released early in an attempt to reverse what the company said was an unwarranted sell-off of its shares. The price has fallen by around 25% over concerns about a downturn in Irish house building and the health of the economy.
The shares rose 5.3% to €10 on the profit announcement, outperforming a 1.2% stock market decline.
Executive chairman Michael Chadwick said: “The strong growth in sales, profits and earnings derives from a strong performance in the UK and solid profit growth in Ireland. In the UK this was supported by good underlying demand.”
UK turnover was up 17% to €979m, around 60% of the group’s total €1.61bn revenues for the first half.
Finance director Colm O’Nuallain said the UK economy remained in good shape although recent interest rate rises could impact the repair, maintenance and improvement market.
