Grafton posts pre-tax profits of €102m

Construction and building materials group Grafton has reported an increase of 27% in its pre-tax profits, to €102m.

Sales for the group also soared 30% to €1.5bn, while operating profits before goodwill rose 34%, to €123.3m.

Irish profits were up 16%, to €44.8m.

Meanwhile, British sales rose by 37% to €1bn, this accounts for 74% of the group's overall sales.

Earnings per share (before goodwill and exceptionals) increased by 22% to 45.07 cent.

Michael Chadwick, chairman of Grafton said: "The performance reflects the successful strategy of diversifying earnings both geographically and across sectoral markets."

Grafton spent €289m on acquisitions and capex, with ten acquisitions completed in 2003.

The group described the Irish economy as "remarkably resilient" during 2003, and said that the residential sector had a strong year with 68,000 units completed, compared with 57,700 units completed for 2002.

It also said that demand remained strong in the repair, maintenance and improvement market.

In Ireland, Chadwicks builders and plumbers traded strongly due to volume growth and tight operational management of the business.

Woodie's had an increase in turnover of 12.4% to €110.3m and increased its store network to sixteen, with two new stores in Cavan and Carlow opening in late 2003.

In its outlook, Grafton said that it is ideally placed to grow its businesses organically and by acquisition.

Within Britain, it expects economic conditions to underpin demands in the repairs, maintenance and improvement sector, and the Euromix business is expected to continue its growth plan with the completion of a seventh plant in Southampton.

The group expects a positive result in the Irish market for 2004, but says it sees demand for housing moderating, but improved consumer sentiment will positively influence its Chadwicks and Woodies divisions.