Grafton revenues show 4% rise

GRAFTON Group saw its revenues increase by 4%, year-on-year, during the first four months of this year.

The Dublin-headquartered builders’ merchants and DIY retail group told shareholders at its annual general meeting, yesterday, that group turnover up to the end of April stood at €642 million.

However, management added that trading conditions in the Irish market, Grafton also has a presence in Britain and mainland Europe, remained “challenging”. This is mainly due to weak demand in the residential RMI, repair and maintenance, market and because of generally low levels of activity in the new housing build markets.

The group — which owns the Heiton-Buckley and Chadwick’s merchants businesses and retail names such as Woodie’s and Atlantic Homecare — said that the increase in turnover and its lower cost base has resulted in operating performance improving during the period.

Two months ago, Grafton reported a pre-tax profit of €25.6m for 2010 — which marked an 88% annual increase on the €13.6m profit generated a year previously.

Revenue for 2010 was 1% ahead at €2bn, with group executive chairman, Michael Chadwick, saying the business had entered a modest growth phase.

Yesterday’s update said that this trend has continued into 2011.

One reason for that has been a recovery in the residential RMI market in Britain, which now accounts for over 70% of the group’s turnover. This recovery managed to continue despite the general background of uncertain consumer confidence.

Also, the Belgian builders merchanting business, in which Grafton holds a 49% stake, traded successfully and grew by acquisition and increased its annualised turnover to around €40m.