Grafton profits ahead of forecasts

BUILDING supplies company Grafton’s better that expected 32% surge in pre-tax profits is forcing stockbroking analysts to increase full-year forecasts for the company by anything up to 10%.

Yesterday, Grafton which became the fourth largest builders merchant in Britain earlier this year after buying the Jacksons chain, posted a 32% jump in pre-tax profit to €41.7 million in the six months to end of June. Adjusted earnings per share increased by 25% to 19.63 cent.

This was well ahead of market expectations and within hours of the results Davy, Goodbody and Merrion stockbrokers all indicated that they would be updating their forecasts on the group which derived 74% of its €706.5m turnover in Britain with the remainder coming in Ireland.