Grafton pre-tax profits up 8%

Building and home improvement giant Grafton Group has today reported an 8% increase in pre-tax profits, up to €228.6m from €211.4 m in 2006.

Revenue increased from €2.93bn to €3.21bn, a 9% jump, with adjusted earnings per share at 84.3c (up from 78c).

Irish turnover increased by 2% to €1.23bn. Operating profit declined by 5% to €123.7m.

Irish merchanting business was, as expected, impacted by the significant decline in new residential construction.

The UK business increased turnover by 14% to €1.98bn and operating profit increased by 24% to €142.1m.

“In another record year, the ongoing development of our businesses in the UK and Ireland has proved its worth,” said chairman Michael Chadwick.

“Strong brands in both markets and a healthy balance sheet leave the Group well positioned to respond to more demanding market conditions.

“While maintaining a focus on closer integration, scale related benefits, lower cost base and product sourcing gains, Grafton will also take advantage of acquisition and development opportunities that continue to be available and that represent value and are a good strategic fit."