Grafton report 'good growth' in Q1 earnings

Construction company Grafton has reported 'good growth' in earnings for Q1 2004.

The firm said it intends to continue its successful strategy of building on its strong market positions and brands in the UK and Ireland.

It will also continue to avail of 'consolidation opportunities' in the market and in greenfield developments.

Buoyant trading conditions persist in Ireland, Chairman Michael Chadwick said In a statement issued to the Irish stock exchange today.

Its DIY chain Woodies' continued to show like for like sales growth and the two new stores opened in 2003 are trading well, the company said.

The store opened in Clonmel, Co Tipperary during March this year also had a good start to trading.

Woodie’s DIY now trades from 17 locations with the new flagship Naas Road, Dublin store on schedule to open in June. Further store openings already announced will bring the store network to 22 stores.

In the UK, its merchanting businesses have yielded strong acquisition led growth together with increased like for like sales and improving operating margins in a favourable trading environment.

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 around €60 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. The Group now trades from over 290 locations in the UK.

Chadwick said the group remains confident of continued growth in profits and earnings per share in 2004.