Grafton gung-ho about Irish arm

Builders’ merchants group Grafton expects its Irish operations to contribute significantly to its overall growth in the coming three-to-five years.

The Dublin-based, but London-listed group — which generates most of its revenues from the UK — yesterday published a strong set of first-half results; with underlying pre-tax profits for the six months to the end of June up by 88%, year-on-year, to £45.9m (€57.8m), operating profit up by over 60% at £50.6m, and revenues ahead of the corresponding period last year by 11%, at just over £1bn. Adjusted earnings per share were up by 92% to 15.39p.

While growth was driven by its UK merchanting business, which represents almost three-quarters of group revenue, Grafton also noted “significant increase” in revenue and operating profit at its Irish merchanting division, as well as a modest increase in its Woodie’s DIY retail arm, here. Ireland contributes just over 20% to Grafton’s annual group revenues, but chief executive Gavin Slark said its profit performance, rather than proportion within the group, is what’s important.