Grafton gains 33c on back of strong H1 results

Building materials group Grafton saw its share price rise 33c to €6.28 on the Iseq this morning, after indicating better than expected results in a trading statement.

Turnover in the first six months of 2004 is expected to exceed last year's levels by more than 20% and this is also reflected in significantly increased levels of operating profit.

Operating profit before goodwill amortisation for H1 is expected to increase by over 25% on the same period in 2003.

Irish sales growth assisted by fine weather has seen both Irish Merchanting and Woodie's DIY turnover improve.

Woodie's DIY new flagship store on the Naas Road opened over the June Bank Holiday weekend, bringing the Woodie's store network to 18.

The Group also said it continued to experience favourable trading conditions in the UK and Ireland during the first half of the year.

This reflected in good sales growth, in addition to strong integration led growth in the UK.

Group profits in the half year are expected to be materially ahead of market expectations, the company said.

In the UK, Group operations continue to benefit from the synergies associated with the larger acquisitions completed during 2003 and UK operating margins are improving in line with market expectations.

Recent acquisitions are also performing well with its new EuroMix Dry Mortar plant in Southampton is scheduled to commence production later this month.