Grafton buyouts fuel sales growth

BUILDING materials group Grafton’s British acquisitions — six so far this year — are fuelling sales growth.

The company is expected to make 68% of its forecast pre-tax profits of E120 million in Britain this year.

Company chairman Michael Chadwick gave an upbeat update to shareholders at yesterday’s annual general meeting, saying Grafton’s successful strategy of building on its strong market positions and brands in Britain and Ireland continues. This is done, he said, by participating in both the ongoing consolidation opportunities in the market and in greenfield developments.

“For the first quarter of 2004, in line with our expectations, the group has returned good growth in earnings. Once again, the UK merchanting businesses have yielded strong acquisition-led growth together with increased like-for-like sales and improving operating margins in a favourable trading environment,” he said.

Mr Chadwick said the businesses acquired during 2003, in particular the two larger acquisitions, Jackson Building Centres and Plumbline Supplies, continue to trade strongly. “Since the start of the year the group has completed six acquisitions in the UK adding circa E60 million to group turnover on an annual basis.

“EuroMix, the group’s silo mortar division, continues to increase sales and profitability. A new plant in Southampton, its seventh in the UK, is on schedule to open in July,” he said.

The group trades from over 290 locations in Britain. “Buoyant trading conditions persist in Ireland. The merchanting business continues to benefit positively and this is reflected in good sales growth and an improvement in profits.