Pre-tax profits up 88% at Grafton on 1% sales rise

Building materials and DIY group Grafton today posted pre-tax profits of €25.6m for full-year 2010, up 88% on the previous year.

Revenue for the 12 months to end December rose 1% to €2bn, with operating profitings jumping 93% to €50.6m.

The Group attributed the strong figures in part to what it sees as "modest" growth in the UK market, although it said conditions in Ireland remain "unpredictable".

“The Group’s strong financial position and lower cost base leave it well placed to benefit from improvements in its markets," said Executive Chairman Michael Chadwick.

"The UK economy appears to be in a modest growth phase and activity in our sector has recovered from historically low levels.

" The outlook for Ireland remains unpredictable."

Mr Chadwick said the company expected further improvement in profit as markets recover.

Grafton Group trades in Ireland under the Chadwicks and Heiton Buckley brands.

Mr Chadwick last month announced his intention to retire as group CEO at the end of July. His replacement has been named as Gavin Slark (45), previously CEO of BSS Group.

Leo Martin, executive director and chief operating officer, has also advised the board of his intention to retire at the end of the year.