Grafton announces better-than-expected profits of £79.1m

Grafton announces better-than-expected profits of £79.1m

Grafton Group has announced that, for the half year to the end of June, it made a before-tax profit of £79.1m, a 16% increase on the same period last year.

Revenue was up 9% to £1.3bn, a 6% increase in constant currency, while adjusted operating profit before property profit was up 19% to £77m.

The company said tehre were a number of factors to the growth, including growth in the Irish merchanting, Woodie's DIY and mortar manufacturing businesses; an increase in the scale and profitability of the Netherlands merchanting business and recovery in profitability in the traditional UK merchanting business.

Grafton CEO Gavin Slark said: "We are pleased to report that all geographies contributed to strong growth in revenue and double digit growth in profits and earnings per share in the first half. This encouraging outcome leaves us well placed to deliver our full year expectations."

Stockbrokers Davy said Grafton’s first-half performance was better than expected, being 6% better than their forecast of £74m.

Davy said: "As we already upgraded estimates in July (by circa 3%), it is clear that Grafton is enjoying good momentum at present. We believe the benefit of numerous strategic initiatives — underway in each of its distribution businesses — is now apparent in the group’s performance."

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