Grafton turnover up 12.5%

Builders merchants Grafton have said their turnover for the first half of this year was €1.6bn, up 12.5% on the same period in 2006.

Grafton said better conditions in the UK in the second half of 2006 are continuing and underlie a "return to growth in this market".

Admitting a "moderation in the level of new residential construction activity in Ireland", the group’s Irish merchanting business achieved low single digit like-for-like sales growth in the first six months of the year.

The Irish DIY business performed strongly, as expected, during the half year, Grafton said in a trading update today.

The group completed six acquisitions at a cost of €42m in the first six months. Five acquisitions with 21 branches were completed in the UK and one branch acquired in Ireland. The acquired businesses have annual sales of €60m.

"Grafton group has entered the second half of the year in a strong position to deal with a future trading environment that is expected to be more challenging," the company said today.